The Sweater Corp. is a Canadian corporation which plans to expand internationally. The company has decided to establish a foreign subsidiary corporation in another country. Which of the following is FALSE?
A) The subsidiary will be subject to taxes in the foreign country.
B) The subsidiary's profits will be included in the Canadian corporation's worldwide income.
C) Dividends received by the Canadian corporation from the foreign subsidiary may be subject to a withholding tax in the foreign jurisdiction.
D) Dividends received by the Canadian corporation from the foreign subsidiary will be included in the Canadian corporation's worldwide income.
Correct Answer:
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