AFP
CTP · Question #178
(Topic 2) A multinational company (MNC) that operates a shared service center charges its foreign subsidiaries a management fee. This management fee may need to be:
The correct answer is C. negotiated with the host government. See the full explanation below for the reasoning.
Question
- (Topic 2)
A multinational company (MNC) that operates a shared service center charges its foreign subsidiaries a management fee. This management fee may need to be:
Options
- Amanipulated to locate profits in low-tax countries.
- Bpaid through a third-party intermediary.
- Cnegotiated with the host government.
- Dsignificantly taxed by the host government.
How the community answered
(26 responses)- A12% (3)
- B4% (1)
- C77% (20)
- D8% (2)
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