Which of the following statements best describes the primary purpose of the Subpart F income provisions?

Question

Quizplus · Accepted Answer

The primary purpose of the Subpart F income provisions is to prevent the shifting of income from the United States to low-tax foreign jurisdictions. The provisions do this by requiring U.S. shareholders of certain foreign corporations to include in their income currently certain types of income earned by those corporations that might otherwise escape U.S. taxation. This helps to ensure that foreign income is subject to U.S. taxation at a similar rate to domestic income.

Which of the Following Statements Best Describes the Primary Purpose