By making a water's edge election, the multinational taxpayer can limit the reach of unitary principles to the apportionment factors and income of its U.S. and E.U. affiliates.

Question

Quizplus · Accepted Answer

A water's edge election typically limits the inclusion of foreign affiliates to only those within the U.S. and certain other jurisdictions, but not specifically to E.U. affiliates.

By Making a Water's Edge Election, the Multinational Taxpayer Can