How is the foreign tax credit limitation determined? How does worldwide averaging work? If the firm had no plans to repatriate income from a low- tax country, would it be advisable to do so if foreign tax credit carry forwards from the repatriation of income from high- tax countries were about to expire?
Answer to relevant QuestionsWhy might a firm wish to repatriate income from a subsidiary in a low-tax country? If it does so, is it advisable to repatriate income from a high- tax country at the same time? Why or why not? California Cars is a U. S. manufacturer of electric cars. California Cars has $ 5 billion of U.S. taxable income—$ 4 billion of which is U.S.- source income and $ 1 billion of which is foreign- source income. California ...A U. S. company is planning to form a foreign subsidiary to undertake a profitable project in a country where the tax rate is 25%. The company’s tax rate in the United States is 35%. a. If the withholding tax rate on ...Why is it so difficult to measure the effects (if any) of taxes on the pretax returns of assets? What are the tax benefits and costs of a transaction that changes the depreciable basis of an asset?
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