ABC Co. was incorporated in Canada in 2015, however, it never did business in Canada. It had a permanent establishment in the US only. How will ABC be taxed?
ABC Co. was incorporated in Canada in 2015, however, it never did business in Canada. It had a permanent establishment in the US only. How will ABC be taxed?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ABC Co. was incorporated in Canada in 2015, however, it never did business in Canada. It had a permanent establishment in the US only. How will ABC be taxed?
a. taxed in Canada on its Canadian income only
b. Taxed in the US only since that is where the permanent establishment is
c. Taxed in both Canada and the US based on share of income
d. Taxed in Canada on its world income and given a foreign tax credit for any US taxes paid
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