What is the difference between a direct foreign tax credit and an indirect (deemed paid) foreign tax credit?
Answer to relevant QuestionsWhat are the foreign tax credit limitations and why do they exist? Hawkeye Networks is a U.S. corporation with no foreign-source income of its own, but it does have wholly owned subsidiaries in Korea and Singapore. The Korean subsidiary has $43 million of pre-tax Korean-source income, faces ...Consider a U. S. corporation with a single foreign branch in Greece. Suppose the firm’s foreign taxes paid are less than the foreign tax credit limitation and the firm expects to remain in this position indefinitely. Would ...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 ...From an economic policy perspective, do you think the provisions in Section 351 that allow nontaxable corporate formation are desirable? Why or why not?
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