Chapter 14, Problem 36QA

Question What does International transfer pricing generally entail ? Select an answer: ( A ) the premium (ar tax) charged when products are moved across international borders ( B ) factoring in the various tax rates of the jurisdictions from where a product is coming from and where it is going to ( C ) a corporation selling products a different prices in different countries  ( D  ) a corporation selling products from one division of the corporation to another division of the corporation located in a different country

Research the topic "Puerto Rico as a Domestic Tax Haven: Relocating as an Alternative to Expatriation to Claim Income Tax Savings" . With the enhanced focus on offshore tax avoidance, it is ironic that one of the world's last remaining tax havens is a U.S. possession, namely the Commonwealth of Puerto Rico. Both the Internal Revenue Code and Puerto Rican tax laws provide significant tax minimization opportunities for high net worth individuals and business owners to relocate to the island. IRC Section 933 exempts bona fide residents of Puerto Rico from U.S. federal income tax on any Puerto Rico-sourced income. As a further sweetener, Section 937 sets the threshold for establishing bona fide residency in Puerto Rico (and some other U.S. possessions) at 183 days, which are more favorable terms than residency rules for offshore non-U.S. jurisdictions. In addition to the IRC provisions, Puerto Rico has enacted several tax provisions designed to attract investors and business owners to…

A _____________________________ is a means of ensuring that the expatriate’s after-tax income in the host country is similar to what the person’s after-tax income would be in the home country A) International tax management system B) HRM system C) Nucor sytem D) Tax deduction system E) Tax equalization system