QUESTION: 169

Which of the following is NOT a method multinational companies (MNC) use to repatriate capital?

Internal factoring
Dividends
Transfer pricing
Management fees

Answer(s): A

QUESTION: 170

A multinational company (MNC) that operates a shared service center charges its foreign subsidiaries a management fee. This management fee may need to be:

manipulated to locate profits in low-tax countries.
paid through a third-party intermediary.
negotiated with the host government.
significantly taxed by the host government.

Answer(s): C

Show Answer Next Question

QUESTION: 171

A multinational company may use which of the following to locate profits in subsidiaries in low-tax countries?

Dividends
Transfer pricing
Management fees
Intracompany loans

Answer(s): B

Show Answer Next Question

QUESTION: 172

A U.S.-based electronics company that buys components from one of its foreign subsidiaries at a price above market is likely to:

be paid large dividends by the subsidiary.
be sheltering profits in a low-tax country.
need tax consultants to act as intermediaries.
make payment with an intracompany loan.

Answer(s): B

Show Answer Next Question

Free AFP CTP Exam Questions (page: 44)

QUESTION: 169

QUESTION: 170

QUESTION: 171

QUESTION: 172

CTP Exam Discussions & Posts