Multiple Choice
Which of the following statements regarding inversions is incorrect?
A) The objective of an inversion is to avoid U.S.tax on worldwide income.
B) In an inversion,a U.S.corporation reorganizes as a foreign corporation.
C) The IRS will disregard the inversion if the former shareholders of the U.S.corporation continue to own 60% of the foreign corporation's stock.
D) The IRS will examine whether the foreign corporation conducts substantial business in the foreign country of incorporation to determine if the inversion is valid.
Correct Answer:
Verified
Correct Answer:
Verified
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