Question: When a company incorporated in a country with a high
When a company incorporated in a country with a high tax rate does business in countries with lower tax rates, it will report an effective tax rate below its statutory rate. Is the difference sustainable into the future? What
occurs if the company decides to repatriate earnings? Howshould operating taxes be computed in the year of repatriation? How is ROIC distorted by foreign taxation and repatriation?
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