Which of the following tax-related factors need not be considered in assessing a foreign target?

A)corporate tax rates in the host country
B)withholding tax rates in the host country
C)withholding tax rates in the home country
D)corporate tax rates in the home country
E)All of the above must be considered in assessing a foreign target.

Question

Which of the following tax-related factors need not be considered in assessing a foreign target?
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A)corporate tax rates in the host country
B)withholding tax rates in the host country
C)withholding tax rates in the home country
D)corporate tax rates in the home country
E)All of the above must be considered in assessing a foreign target.

Quizplus · Accepted Answer

The withholding tax rates in the home country are not relevant in assessing a foreign target as they do not affect the potential profitability or tax liabilities of the foreign target. However, corporate tax rates and withholding tax rates in the host country can have a significant impact on the financial performance and tax obligations of the foreign target, while corporate tax rates in the home country can affect the overall tax strategy and planning of the acquiring company.

Which of the Following Tax-Related Factors Need Not Be Considered