_____ Which of the following statements is false concerning the U.S. income tax rules?
A) Only domestic subsidiaries can pay U.S. income taxes at the subsidiary level.
B) If a domestic subsidiary has paid income taxes to the U.S. government at the subsidiary level, then the subsidiary's earnings (net of income taxes) will not be taxed again in the form of dividends at the parent level.
C) The intent of the U.S. Internal Revenue Code is to tax only once (in the United States) at the corporate level the earnings of a subsidiary-domestic or foreign.
D) The earnings of foreign branches/divisions are taxed in the United States in the year in which the earnings occur.
E) None of the above.

Question

Quizplus · Accepted Answer

The Answer of _____ Which of the following statements is false concerning the U.S. income tax rules?
A) Only domestic subsidiaries can pay U.S. income taxes at the subsidiary level.
B) If a domestic subsidiary has paid income taxes to the U.S. government at the subsidiary level, then the subsidiary's earnings (net of income taxes) will not be taxed again in the form of dividends at the parent level.
C) The intent of the U.S. Internal Revenue Code is to tax only once (in the United States) at the corporate level the earnings of a subsidiary-domestic or foreign.
D) The earnings of foreign branches/divisions are taxed in the United States in the year in which the earnings occur.
E) None of the above.

_____ Which of the Following Statements Is False Concerning the U.S