Adelaide Software pays royalties to a US firm for the use of the software products. The contract to arrange these royalty payments was signed in Canada. According to tax law what is the source of these royalty payments?
A) The USA
B) Australia
C) Canada
D) Some other place

Question

Quizplus · Accepted Answer

The source of the royalty payments is determined by the location of the payer, which in this case is Adelaide Software, a company presumably located in Australia. Therefore, the source of the royalty payments is Australia.

Adelaide Software Pays Royalties to a US Firm for the Use