International Tax Environment And Transfer Pricing

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Question 1
Free
True/False

An income tax is a direct tax

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True

False

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Question 2
Free
Multiple Choice

The two main objectives of taxation are

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A

tax neutrality and tax equity.

B

complexity and revenue.

C

social engineering and tax equity.

D

progressive taxation and tax neutrality.

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Question 3
Free
Multiple Choice

The three basic types of taxation are

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A

income tax, withholding tax, and value-added tax.

B

income tax, withholding tax, business tax.

C

withholding tax, value-added tax, corporate tax.

D

personal tax, corporate tax, and operating tax.

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Question 4
Free
Multiple Choice

Tax neutrality is determined

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A

by one criterion.

B

by two criteria.

C

by three criteria.

D

by four criteria.

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Question 5
Free
Multiple Choice

Tax neutrality is determined by three criteria: which of the following doesn't belong?

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A

Capital-export neutrality

B

Capital-import neutrality

C

National neutrality

D

Income neutrality

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Question 6
Multiple Choice

Tax neutrality

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A
has its foundations in the principles of economic efficiency and equity.
B
can be a difficult principle to apply in practice.
C
is determined by three criteria: capital export neutrality, capital import neutrality and national neutrality.
D
all of the above
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Question 7
Multiple Choice

The idea that an ideal tax should be effective in raising revenue for the government but not have any negative effects on the economic decision-making process of the taxpayer is referred to as

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A
capital-export neutrality.
B
capital-import neutrality.
C
national neutrality.
D
none of the above
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Question 8
Multiple Choice

The idea that taxable income is taxed in the same manner by the taxpayer's national tax authority regardless of where in the world it is earned is referred to as

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A
capital-export neutrality.
B
capital-import neutrality.
C
national neutrality.
D
none of the above
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Question 9
Multiple Choice

Capital export neutrality

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A
is a goal based on worldwide economic efficiency.
B
is an example of Mercantilism.
C
is based on host country economic efficiency.
D
is based on MNC home country economic efficiency.
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Question 10
Multiple Choice

The idea that the tax burden a host country imposes on the foreign subsidiary of a MNC should be the same regardless of the country in which the MNC is incorporated and the same as that placed on domestic firms is earned is referred to as

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A
capital-export neutrality.
B
capital-import neutrality.
C
national neutrality.
D
none of the above
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Question 11
Multiple Choice

Capital export neutrality

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A
is the criterion that an ideal tax should be effective in raising revenue of the government and not have any negative effects on the economic decision-making process of the taxpayer.
B
requires that taxable income is taxed in the same manner by the taxpayer's national tax authority regardless of where in the world it is earned.
C
implies that the tax burden a host country imposes on the foreign subsidiary of the MNC should be the same regardless of which country the MNC is incorporated and the same as that placed on domestic firms.
D
none of the above
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Question 12
Multiple Choice

National neutrality

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A
is the criterion that an ideal tax should be effective in raising revenue of the government and not have any negative effects on the economic decision-making process of the taxpayer.
B
requires that taxable income is taxed in the same manner by the taxpayer's national tax authority regardless of where in the world it is earned.
C
implies that the tax burden a host country imposes on the foreign subsidiary of the MNC should be the same regardless of which country the MNC is incorporated and the same as that placed on domestic firms.
D
none of the above
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Question 13
Multiple Choice

Capital import neutrality

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A
is the criterion that an ideal tax should be effective in raising revenue of the government and not have any negative effects on the economic decision-making process of the taxpayer.
B
requires that taxable income is taxed in the same manner by the taxpayer's national tax authority regardless of where in the world it is earned.
C
implies that the tax burden a host country imposes on the foreign subsidiary of the MNC should be the same regardless of which country the MNC is incorporated and the same as that placed on domestic firms.
D
none of the above
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Question 14
Multiple Choice

The term "capital-import neutrality" refers to

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A
the criterion that an ideal tax should be effective in raising revenue for the government and not have any negative effects on the economic decision-making process of the taxpayer.
B
the fact that taxable income is taxed in the same manner by the taxpayer's national tax authority regardless of where in the world it is earned.
C
the criterion that the tax burden a host country imposes on the foreign subsidiary of a MNC should be the same regardless in which country the MNC is incorporated and the same as that placed on domestic firms.
D
underlying principle that all similarly situated taxpayers should participate in the cost of operating the government according to the same rules.
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Question 15
Multiple Choice

The criteria of tax neutrality: capital export neutrality,capital import neutrality and national neutrality

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A
all consistent with one another.
B
are not always consistent with one another.
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Question 16
Multiple Choice

Implementing capital import neutrality means that

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A
a sovereign government follows the taxation policies of foreign tax authorities on the foreign-source income of its resident MNCs.
B
the tax burden a host country imposes on the foreign subsidiary of a MNC should be the same regardless of the country in which the MNC is incorporated.
C
the tax burden a host country imposes on the foreign subsidiary of a MNC should be the same as that placed on domestic firms.
D
all of the above
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Question 17
Multiple Choice

Tax equity means that

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A
similarly situated taxpayers should participate in the cost of operating the government according to the same rules.
B
regardless of the country in which an affiliate of a MNC earns taxable income, the same tax rate and tax due date apply.
C
a dollar earned by a foreign affiliate is taxed under the same rules as a dollar earned by a domestic affiliate of the MNC.
D
all of the above
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Question 18
Multiple Choice

The underlying principle of tax equity is that

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A
all similarly situated taxpayers should participate in the cost of operating the government according to the same rules.
B
all similarly situated taxpayers should participate in the cost of operating the government on an equal basis.
C
none of the above
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Question 19
Multiple Choice

If a dollar earned by a foreign affiliate is taxed under the same rules as a dollar earned by a domestic affiliate of the MNC,then we have achieved

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A
capital-export neutrality.
B
capital-import neutrality.
C
national neutrality.
D
tax equity.
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Question 20
Multiple Choice

The organizational form of a MNC can affect the timing of a tax liability.This means

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A
the principle of tax equity might be violated.
B
as long as regardless of the country in which an affiliate of a MNC earns taxable income, the same tax rates apply, then the tax due date doesn't matter.
C
tax timing will even out over a reporting cycle, so there is no big deal here.
D
none of the above
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