WHAT IS THE EFFECT ON AN MNC OF WITHHOLDING TAXES IMPOSED ON A FOR...

76. - BT THANH TOAN QUOC TE MULTINATIONAL FINANCIAL MANAGEMENT DAP AN
BT THANH TOAN QUOC TE MULTINATIONAL FINANCIAL MANAGEMENT DAP AN
76. What is the effect on an MNC of withholding taxes imposed on a foreign subsidiary? a. The withholding tax reduces the after-tax amount received by the MNC. b. The withholding tax does not affect the MNC since it is the obligation of the subsidiary. c. The withholding tax always increases the overall tax burden on the combined MNC-subsidiary enterprise. d. The withholding tax always decreases the overall tax burden on the MNC-subsidiary enterprise because of tax credits that are allowed for the withholding tax paid.