Which of the following statements is false?

A.if a parent company invests in its foreign subsidiary using debt, the portion of each payment made by the subsidiary that represents the return-of-principal is not subject to a withholding tax

B. If a parent company invests in its foreign subsidiary using equity, the dividends paid to the parent are not subject to a withholding tax

C. IF a parent company invests in its foreign subsidiary using debt, the portion of each payment represent interest expense will reduce the subsidiary's income tax.