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SWFT Essntl Tax Individ/Bus Entities 2020

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter16: Multijurisdictional Taxation

Section: Chapter Questions

Problem 20P

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Question

How much U.S. tax does new tech owe on the subsidiary income?

New Tech, Inc. has a solely owned
subsidiary in Belgium. In the current year,
the subsidiary had a taxable income of $100
million and remitted $30 million to New Tech
in the form of a dividend. New Tech has a
marginal U.S. tax rate of 35 percent. How
much U.S. tax does New Tech owe on the
subsidiary's income? Assume that the
subsidiary has no Sub-part F income.

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