Which of the following statements best describes the primary purpose of the Subpart F income provisions?

Question

Quizplus · Accepted Answer

The primary purpose of the Subpart F income provisions is to prevent the shifting of income from the United States to low-tax non-U.S. jurisdictions. This is done by subjecting certain types of income earned by controlled foreign corporations (CFCs) to U.S. taxation in the hands of the U.S. shareholders, regardless of whether the income is actually distributed.

Which of the Following Statements Best Describes the Primary Purpose