Nexus involves the criteria used by a government to assert its right to tax a person or transaction within or without its borders.

Question

Quizplus · Accepted Answer

This is correct. Nexus refers to the connection or link between a taxpayer (or transaction) and a particular jurisdiction that gives the government the authority to tax them. Governments use criteria such as residency, physical presence, economic activity, and other factors to determine nexus.

Nexus Involves the Criteria Used by a Government to Assert