NO.PZ2024101001000025
问题如下:
Question An analyst gathers the following information about a company's tax disclosures:
Compared to Year T – 2, in Year T – 1 the company most likely generated:
选项:
A.A.a lower share of its profit in countries with higher marginal tax rates. B.B.the same proportion of profit in countries with higher marginal tax rates. C.C.a higher share of its profit in countries with higher marginal tax rates.解释:
Solution-
Incorrect because the effect of tax rates in foreign jurisdictions rose from 2% to 4%.
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Incorrect because the effect of tax rates in foreign jurisdictions rose from 2% to 4%, indicating a higher share of profits being generated in countries with higher marginal tax rates.
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Correct because the effect of tax rates in foreign jurisdictions rose from 2% to 4%. This greater impact could indicate that profit mix shifted to countries with higher marginal tax rates. The change could also indicate that the marginal tax rates increased in the countries in which it earns profits.
- describe how multinational operations affect a company’s effective tax rate
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