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Source Rules
- You are the Chief Financial Officer (CFO) of a multinational corporation. Suggest a strategy to minimize the tax impact on foreign sourced income. Support your strategy with examples.
- You are a CPA working as a tax professional who was bribed by a U.S.-based multi-national company to help that company avoid paying income on U.S.-sourced income. Develop a scheme for the company to avoid tax on U.S.-based income so that it would likely not be discovered by the IRS.
Each bullet point have to be at least a paragraph or two long.
Answer preview
The management can declare profits in low tax jurisdictions. A good example is the Apple Company that has foreign subsidiaries in the Ireland where the profits are not taxed. The holding company of Apple pays no taxes to any government. The reason is that the management of Apple Company does not claim tax residence anywhere…..
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