ITP Quiz

Eva is a tax resident in country A. She earned money in country A and country B. Residence-source conflict may arise:

• with respect to income in country A

• with respect income in country B

• with respect income in both in country A and country B

A tax imposed on outward dividends, royalties etc. is called:

• spared tax

• withholding tax

• shifted tax

• lump-sum tax

Principal place of abode is a place where:

• taxpayer's family stays

• taxpayer spends most time in a given tax year

• taxpayer intends to stay on a permanent basis

• taxpayer's centre of business interests lies

A territory that offers favourable tax conditions is called:

• tax haven

• tax heaven

• tax jurisdiction

• source country

Adam is a tax resident in Poland. He earns money solely abroad. He would not pay any tax in Poland if ____ is applied.

• exemption with progression method

• full tax credit method

• ordinary credit method

Foreign business activities are not subject to taxation abroad unless a company sets up a/an ___ there.

• permanent establishment

• storage

• display

The taxation of profits firstly at the company's level and then at the level of its shareholders is an example of:

• juridical double taxation

• economic double taxation

• economical double taxation

Most double tax treaties are multilateral.

• True

• False

According to ___ taxes paid abroad can be deducted from tax liability towards a residence country.

• credit method

• exemption method

• exemption with progression method

The aim of (international) tax planning to

• minimize tax liability

• maximize sales

• minimize costs

• maximize after-tax profit