Which of the following tax benefits does not arise when a U.S.corporation forms a corporation in Ireland through which to earn business profits in Ireland?
A) Potential deferral of U.S. tax on income earned by the corporation.
B) Treaty benefits on cross border payments between the Irish corporation and the U.S. corporation.
C) Use of transfer pricing to shift income between the United States and Ireland.
D) Flow-through of losses from the Irish corporation to the tax return of the U.S. corporation.

Question

Quizplus · Accepted Answer

Forming a corporation in Ireland would not provide flow-through of losses from the Irish corporation to the U.S. corporation's tax return. This tax benefit applies only to partnerships, S corporations, and other pass-through entities, not to corporations. However, the other three tax benefits listed could arise when a U.S. corporation forms a corporation in Ireland.

Which of the Following Tax Benefits Does Not Arise When