Mary is a U.S.expatriate who is assigned to work in Belgium.In order to avoid double income taxation and maintaining residences in the United States and in Belgium,which approach will not place her at a financial disadvantage?

Question

Quizplus · Accepted Answer

The balance sheet approach is designed to maintain the expatriate's standard of living by equalizing the after-tax income of the expatriate in both the home and host countries. The approach involves determining the difference in the cost of living between the two countries and adjusting the expatriate's compensation package accordingly. This approach is considered the most comprehensive and fair in terms of avoiding double income taxation and maintaining residences in both countries. The cost comparison approach and the weights and measurements approach are less comprehensive and may not provide a fair solution for the expatriate. The retrospective approach is not a relevant approach in this situation.

Mary Is a U