_____ tax neutrality ensures that incomes arising from foreign and from domestic operations are taxed similarly by the domestic government.

Question

Quizplus · Accepted Answer

Tax neutrality refers to the idea of treating all income generated within a country equally regardless of whether it comes from domestic or foreign operations. Domestic tax neutrality, therefore, ensures that the income from both domestic and foreign operations is taxed similarly by the domestic government. Option A is the correct choice because it only refers to domestic operations and not foreign operations, which may have different tax implications depending on the country where they are generated.

_____ Tax Neutrality Ensures That Incomes Arising from Foreign and from Domestic