--%>

Double taxation

Specify some of the methods taxing authorities utilize to remove or diminish evil of double taxation?

E

Expert

Verified

Typical approach for avoiding the double taxation is for nation not to tax foreign-source income of its national residents. The alternative method, and the one which U.S. follows, is to give allowance to parent firm foreign tax credits against the U.S. taxes for taxes which are paid to the foreign tax authorities on foreign-source income.

   Related Questions in Financial Accounting

  • Q : Case study of Drug free at Monochem

    Read the case study entitled ‘Drug-Free and Alcohol-Free at Monochem, Inc. and answer the following questions. 1) Suppose John has developed the ethical codes for the company with an objective of creating a d

  • Q : Increase the return without any

    Suppose that treasurer of IBM has an extra cash reserve of $1,000,000 to invest for the six months. Six-month interest rate is 8% per annum in U.S. and 6% per annum in the Germany. Presently, spot exchange rate is DM1.60 per dollar and six-month forward exchange rate

  • Q : Components of social interaction

    Identify and explain important components of social interaction.

  • Q : Define Margin Improvement Margin

    Margin Improvement: Margins in the business remained beneath pressure, even previous to the economic downturn for the industry as an entire, returns on capital have continued under the cost of capital. Previous to the falls in the second half of the y

  • Q : What is Liability Management Liability

    Liability Management: The procedure by which financial institutions balance outstanding liabilities, like deposits, CDs, and so on, with suitable liquidity reserves. Banks and other lenders employ liability management to decrease liquidity risks and u

  • Q : Responsibility Accounting Explain the

    Explain the term Responsibility Accounting and types of responsibility centres with example?

  • Q : Uncertainty in dollar/franc exchange

    Suppose that your company has an equity position within the French firm. Explain some of the condition under which the dollar/franc exchange rate uncertainty does not have the exchange exposure for your company.

  • Q : Define Money fund Money fund: Money

    Money fund: Money fund is as well main instrument of the money market. This fund that can be employed for fulfilling the requirements of banks to repay the customers.

  • Q : What is Gresham’s Law What do you mean

    What do you mean by the Gresham’s Law?

  • Q : Uncertainty of exchange rate

    Uncertainty of the exchange rate does not essentially means that the firms face exchange risk exposure. Explain this scenario.