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What Generally Happens to Excess Foreign Tax Credits That an MNC

Question 5

Multiple Choice

What generally happens to excess foreign tax credits that an MNC cannot use in the year that the foreign tax credits are created?


A) The unused foreign tax credits are lost.
B) Foreign tax credits not used in the year that they are created can be generally be carried forward but not carried back to reduce tax liability in future years.
C) Foreign tax credits not used in the year that they are created can generally be carried forward or carried back to reduce tax liabilities in other years.
D) Foreign tax credits not used in the year that they are created can generally be carried back but not carried forward to reduce tax liability in previous years.

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