What term is used for the characteristic of a tax system whereby a company's decisions to invest domestically or abroad is not affected by taxation?

Question

Quizplus · Accepted Answer

Capital export neutrality is the term used for the characteristic of a tax system whereby a company's decisions to invest domestically or abroad is not affected by taxation. It means that the tax system does not favor or disfavor domestic or foreign investment, and companies make investment decisions based solely on economic factors, rather than tax considerations. Choice A is incorrect because foreign tax credit is a mechanism to avoid double taxation on income earned abroad. Choice B and D are not the commonly used terms in this context.

What Term Is Used for the Characteristic of a Tax