inbound taxation questions True / False Questions Service revenue is sourced based on the location in...

inbound taxation questions

True / False Questions

Service revenue is sourced based on the location in which such services are rendered.
Income tax treaties can generally only result in an increase in the amount of U.S. tax due.
The purpose of the foreign tax credit is to reduce international double taxation.
Under present law, a trust is considered a US person only if a US court has primary supervision over the trust’s administration and US persons have the authority to control all substantial decisions of the trust.
Fixed or determinable, annual or periodical income from foreign sources is subject to Internal Revenue Code section’s 1441 and 1442.

Expert Solution

1. True. Service revenue is source based on the location in which service are rendered

Explanation : The place, where the personal services are performed, generally determines the source of the personal service income, regardless of where the contract was made, or the place of payment or the residence of the payer.

2. False.

Explanation : The tax treaties align many tax laws between two countries regard withholding taxes and attempt to reduce double taxation. To simplify things and clarify which countries can tax what income and when, countries often enter into bilateral and sometimes multilateral tax treaties. This helps to reduce taxation and tax dues.

3. True.

Explanation : The foreign tax deduction allows American taxpayers to reduce their taxable income by a portion of the amount of income tax paid to foreign governments. The goal is to prevent citizens from being subject to double taxation for the same income.

4. True.

Explanation : Every trust is a foreign trust unless both of the following are true:

A U.S. court can exercise primary supervision over the administration of the trust; and One or more U.S. persons have the power to control all substantial decisions of the trust.

5. False

Explanation : Tax at a 30% (or lower treaty) rate applies to FDAP income or gains from U.S. sources, but only if they are not effectively connected with your U.S. trade or business. The 30% (or lower treaty) rate applies to the gross amount of U.S. source fixed or determinable, annual or periodical gains, profits, or income.

Colby Messinger answered 2 years ago

Here are some true and false questions to see if you understandthe revenue and profit...

Here are some true and false questions to see if you understand the revenue and profit terms and the three key rules to maximize profit. Briefly explain why you chose that answer1) When marginal profit is 0 dollars, we know that total profit is 0.2) If marginal profit is negative, a firm's total profit will increase if the firm produces fewer units of product.3) At is current output level, the Placone Firm has AR=12 dollars and MC=10 dollars, which means...

Here are some true and false questions to see if you understand the revenue and profit...

Here are some true and false questions to see if you understand the revenue and profit terms and the three key rules to maximize profit. Briefly explain why you chose that answer 1)If a firm sells 200 units of its product at a price of 8 dollars, its total profit will be 1600. 2)If the average revenue from 150 units is 20 dollars, the firm's total revenue is 3000 dollars. 3)If the marginal revenue from the 21st unit is 30...

True/ False Questions: For the following questions, first write whether they are true or false then...

True/ False Questions: For the following questions, first write whether they are true or false then write in a few sentences why it’s true or false. (1.5) a. The processes for producing penicillin and blue cheese both use the Penicillium fungus. b. The reproductive organs of Amanita muscaria are popular pizza toppings. c. The fungus Claviceps purpurea is thought to have triggered the infamous Salem witch trials. d. Saccharomyces cerevisiae is a common household bread mold. ...

True or False Questions: Determine if true or false. If false why? 1) Premature efforts to...

True or False Questions: Determine if true or false. If false why? 1) Premature efforts to treat problem behavior before determining its function can be inefficient, ineffective, and even harmful. 2) Research has found that functional analyses conducted in natural environments (e.g., classroom settings) often yield the same (or even clearer) results compared to those conducted in simulated settings. 3) Problem behavior can only be maintained by one function. Behaviors are not multi-functional. 4) Indirect functional assessment procedures are referred...

A. TRUE / FALSE QUESTIONS Enter “True” or “False” on the blank preceding each question. ______...

A. TRUE / FALSE QUESTIONS Enter “True” or “False” on the blank preceding each question. ______ 1. A “time line” can be drawn to illustrate the cash flows associated with a given investment. ______ 2. Calculating the present value of an expected cash flow is also known as “compounding.” ______ 3. An “annuity due” will always be worth less than an otherwise comparable “ordinary annuity,” because interest will compound for an additional time period. ______ 4. With a “perpetuity,” the...

Answer the following questions True or False. Write “True” or “False” in the blank. 1._________ The...

Answer the following questions True or False. Write “True” or “False” in the blank. 1._________ The rate constant changes if the concentrations of the reactant change. 2._________ If the concentration of a reactant changes, the rate of the reaction always changes. 3._________ The coefficients of the overall reaction tell us the order for each reactant. 4._________ The half-life for a first order reaction does not depend on the initial concentration. 5._________ If the rate of a reaction over a long...

Answer True or False for all questions: 1. A society that relies on a market-based economy...

Answer True or False for all questions: 1. A society that relies on a market-based economy will always protect the natural environment. 2. With the technological developments in the twenty-first century, productivity growth is no longer an important factor in economic well-being. 3. The minimum wage is an example of a government price ceiling and results in a reduction in unemployment. 4. Efficient production can be carried out anywhere on or beyond the production possibilities frontier. 5. An economist would...

Consider the role of the United States Treasury Department, the Internal Revenue Service, in International Taxation....

Consider the role of the United States Treasury Department, the Internal Revenue Service, in International Taxation. What do you think are the major obstacles facing the Internal Revenue Service as our markets continue to become more international? As you continue to evolve in our international markets, how might the Internal Revenue Service’s role change?

The following are five true-false questions. Write in whether true T or false F

The following are five true-false questions. Write in whether true T or false FIn the short run, fixed costs are irrelevant in determining a firm's optimal level of output._______In the short run, a competitive firm will not produce unless price is equal to average total costs.__________If a purely competitive firm is producing a level of output greater than its profit-maximizing output, then marginal revenue is greater than marginal cost._________Economic profit is the difference between total revenue and marginal revenue_________Competitive firms...

True and false questions 1. Contribution margin plus variable cost will equal revenue? 2. Capital budgets...

True and false questions 1. Contribution margin plus variable cost will equal revenue? 2. Capital budgets are used for the budgeting of large expensive expenditures? 3. Ending inventory in a purchases budget is based on next months forecasted sales? 4. Only manufacturing companies can use job order cost accounting? 5. Unfavorable and favorable variances are both investigated? 6. Break-even is the point at which a company achieves its target profit? 7. Contribution margin and gross margin are the same thing?...

Question