If a company undertakes sufficient activities in a particular country, it establishes _____ with that country and becomes liable for filing tax returns in that country.

Question

Quizplus · Accepted Answer

The term that describes the level of activity that a company must undertake in a particular country before becoming liable for taxes is "nexus". Once nexus is established, the company has a connection or presence in the country that gives the country the jurisdiction to impose taxes. Therefore, the correct answer is D, nexus.

If a Company Undertakes Sufficient Activities in a Particular Country