_______ tax neutrality ensures that taxes imposed on the foreign operations of domestic companies are similar to those facing local competitors in the host countries.

Question

Quizplus · Accepted Answer

Tax neutrality refers to the concept of treating domestic and foreign companies equally under taxation laws in the host country. Therefore, the tax imposed on the foreign operations of domestic companies should be similar to those faced by local competitors in the host country. Option B is the best choice as it specifically refers to the tax neutrality of foreign operations. Option A refers to tax neutrality within domestic operations, while option C refers to tax neutrality on a global scale, making them incorrect answers. Therefore, the correct answer is option B.

_______ Tax Neutrality Ensures That Taxes Imposed on the Foreign