Solved

If an MNC's Home Country Allows It to Deduct from Its

Question 20

Multiple Choice

If an MNC's home country allows it to deduct from its taxable income the income tax paid by its foreign subsidiary:


A) the MNC receives full credit for the foreign income tax paid by the subsidiary,and the effects of double taxation are eliminated.
B) whether the MNC receives any relief from double taxation depends on the relative tax rates between the MNC's home country and the foreign country where the subsidiary operates.
C) the MNC pays domestic income taxes on its income and on its subsidiary's after-tax income,and the effects of double taxation are reduced.
D) the foreign subsidiary is relieved of an income tax burden,and the MNC will receive a large remittance of profits from its subsidiary.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents