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14. Cross-crediting BundesTrans is a German company with operations in Switzerland and France. It intends to repatriate 2.5mln EUR in pre-tax profits from Switzerland and

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14. Cross-crediting BundesTrans is a German company with operations in Switzerland and France. It intends to repatriate 2.5mln EUR in pre-tax profits from Switzerland and 2mln EUR of pre-tax profits from France. The corporate income tax rate is 25% in Switzerland, 35% in France and 30% in Germany. How much tax will BundesTrans have to pay in Germany on the repatriated profits if they are allowed to cross-credit taxes paid abroad? a) 25,000 EUR Ob) 125,000 EUR Oc) 75,000 EUR Od) they would receive a refund of 100,000 EUR

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