Hilex Inc. structures a transaction to shift income from its California office to its Oregon office. This tax planning strategy may be taking advantage of the:

Question

Quizplus · Accepted Answer

The strategy of shifting income from one state to another suggests that Hilex Inc. is taking advantage of the jurisdiction variable, which refers to the different tax laws and rates in different geographical locations. By moving income to a state with a lower tax rate, Hilex Inc. can reduce its overall tax burden.

Hilex Inc Structures a Transaction to Shift Income from Its California