Camille, a citizen and resident of Country A, received a $1,000 dividend from a corporation organized in

Question:

Camille, a citizen and resident of Country A, received a $1,000 dividend from a corporation organized in Country B. Which statement best describes the taxation of this income under the two different approaches to taxing foreign income?

a. Country B will not tax this income under a residence-based jurisdiction approach but will tax this income under a source-based jurisdiction approach.

b. Country B will tax this income under a residence-based jurisdiction approach but will not tax this income under a source-based jurisdiction approach.

c. Country B will tax this income under both a residence-based jurisdiction approach and a source-based jurisdiction approach.

d. Country B will not tax this income under either a residence-based jurisdiction approach or a source-based jurisdiction approach.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...