Which of the Following Tax Benefits Does Not Arise When

question 77

Multiple Choice

Which of the following tax benefits does not arise when a U.S. corporation forms a corporation in Ireland through which to earn business profits in Ireland?

• A)Potential exemption of U.S. tax on income earned by the corporation.
• B)Treaty benefits on cross-border payments between the Irish corporation and the U.S. corporation.
• C)Use of transfer pricing to shift income between the United States and Ireland.
• D)Flow-through of losses from the Irish corporation to the tax return of the U.S. corporation.

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Definitions:

Profile Head

An artistic representation of a person's face from the side view, commonly found in various forms of art to focus on facial features and expressions.

Mesopotamia

An ancient region located in the eastern Mediterranean, roughly comprising modern-day Iraq, Kuwait, and parts of Syria, Turkey, and Iran, known as one of the cradles of civilization where writing, agriculture, and cities first arose.

Palace At Knossos

An archaeological site on the island of Crete, considered Europe’s oldest city, and the ceremonial and political center of the Minoan civilization.

Minotaur

The mythical beast, half man and half bull, that inhabited the labyrinth of the Minoan palace at Knossos.