An agreement that exists between different tax jurisdictions to determine where and how taxes are to be collected and remitted is known as a:

• A. Reciprocal Agreement
• B. Treaty
• C. Cooperation Pact
• D. Interstate Tax Agreement

Answer: (A)

Reciprocal agreements are mutual arrangements between tax jurisdictions to decide where taxes are due and how they are collected and remitted. This term captures the idea of each jurisdiction recognizing the other's tax rules and coordinating collection, often to avoid double taxation and simplify compliance.

A treaty is typically a formal, broad agreement between nations and may cover many topics beyond just the mechanics of tax collection, so it’s a broader category. The other options—cooperation pact or interstate tax agreement—are not standard terms used to describe this specific, mutual tax-collection arrangement.