AFP
CTP · Question #833
(Topic 9) Which one of the following is true of capital repatriation for multinational companies?
The correct answer is B. Management fees paid by the subsidiary may require negotiation with the host. See the full explanation below for the reasoning.
Question
- (Topic 9)
Which one of the following is true of capital repatriation for multinational companies?
Options
- APayment of dividends may not be taxed by host governments.
- BManagement fees paid by the subsidiary may require negotiation with the host
- CTransfer pricing can be used to locate profits in subsidiaries in high tax jurisdictions.
- DIntracompany loans which are paid back promptly may be considered dividends.
How the community answered
(38 responses)- A3% (1)
- B71% (27)
- C16% (6)
- D11% (4)
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