ACC 665 Grand Canyon Module 7 Discussion 1
Why do countries with worldwide tax systems give foreign tax credits? Provide an example of the
business implications for two different countries as it relates to doing business with the United States
ACC 665 Grand Canyon Module 7 Discussion 2
Consider a wealthy U.S. citizen that earns $1.3 million per year in dividends and capital gains from her portfolio of U.S. stocks. Can she legally avoid having this income subject to U.S. tax laws by forming an offshore holding company and having the holding company own the stock? She has her holding company reinvest the dividends and capital gains, so she personally receives no cash from her investments. Explain your reasoning and support your response by referencing a relevant reading and/or other supplemental material.
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