Pooling of all foreign tax liabilities on earnings allows corporations to reduce their overall taxes.

Name: Pooling of all foreign tax liabilities on earnings allows corporations to reduce their overall taxes.
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Question

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By pooling their foreign tax liabilities, corporations can use foreign tax credits to offset their U.S. tax liabilities, ultimately reducing their overall taxes. This is a common tax minimization strategy used by multinational corporations.

Pooling of All Foreign Tax Liabilities on Earnings Allows Corporations