Start learning →

CA Final Anti-avoidance Provisions — practice questions — page 2

Explore 65 free Anti-avoidance Provisions questions in CA Final Taxation. Open each question or exercise to read its content, reference answers and available explanation.

Practise Anti-avoidance Provisions with Quill →

Anti-avoidance Provisions questions and exercises with answers

Showing questions 31–60 of 65.

Which of these falls within the definition of tax benefit in section 102?Read the answer and worked solution →For GAAR, a tax treaty means an agreement under which sections of the Act?Read the answer and worked solution →For a company, which person is a connected person under the GAAR definition?Read the answer and worked solution →Under section 99, in testing whether a tax benefit exists, an accommodating party may be:Read the answer and worked solution →Even where DTAA relief is available, the taxpayer remains subject to GAAR by virtue of which provision?Read the answer and worked solution →Which committee headed by Dr. Parthasarathi Shome framed GAAR guidelines?Read the answer and worked solution →Chapter X-A on GAAR was inserted into the Income-tax Act by which Finance Act?Read the answer and worked solution →Which term describes using tax laws in the ways governments intended?Read the answer and worked solution →Which anti-avoidance rule targets one specific avoidance practice or technique?Read the answer and worked solution →Which two principles guide judicial anti-avoidance?Read the answer and worked solution →The business purpose rule says that the main business purpose of a transaction cannot be:Read the answer and worked solution →The OECD defines substance over form as economic reality prevailing over:Read the answer and worked solution →The US business purpose doctrine was established in which case?Read the answer and worked solution →Which UK case is cited as a judicial anti-avoidance doctrine?Read the answer and worked solution →How many legally binding anti-abuse measures does the EU Anti-Tax Avoidance Directive contain?Read the answer and worked solution →Which of these is one of the anti-abuse measures in the EU Anti-Tax Avoidance Directive?Read the answer and worked solution →The ATAD switchover rule is meant to prevent:Read the answer and worked solution →Australia's multinational anti-avoidance law is an extension of its:Read the answer and worked solution →Which is one of Joseph Stiglitz's three principles of tax avoidance?Read the answer and worked solution →A tax shelter is described as one type of:Read the answer and worked solution →A company is thinly capitalised when its debt is much greater than its:Read the answer and worked solution →Thin capitalisation rules chiefly limit the tax deduction available for:Read the answer and worked solution →A gearing ratio of 1.5:1 means that for each 1 of equity the entity has debt of:Read the answer and worked solution →Which authorities worry about excessive interest claims by highly geared companies?Read the answer and worked solution →CFC rules are designed to limit which kind of tax deferral?Read the answer and worked solution →Under CFC rules, certain taxpayers must include in their income:Read the answer and worked solution →The US Subpart F CFC rules were enacted in which year?Read the answer and worked solution →Under US rules, a foreign corporation is a CFC if more than what share is owned by US Shareholders?Read the answer and worked solution →For US CFC purposes, a US Shareholder owns at least what share of the foreign corporation?Read the answer and worked solution →Base erosion and profit shifting involves moving profits from higher-tax to:Read the answer and worked solution →

Worked practice questions

Which of these falls within the definition of tax benefit in section 102?

  1. A rise in gross turnover
  2. A rise in advance tax paid
  3. An increase in a loss
  4. A rise in share capital
Show answer and solution

Correct answer: C. An increase in a loss

Tax benefit includes a reduction in total income and an increase in loss, among other reductions or deferrals of tax.

Open this question →

For GAAR, a tax treaty means an agreement under which sections of the Act?

  1. Sections 91 and 92
  2. Sections 89 and 89A
  3. Sections 90 and 90A
  4. Sections 10 and 10A
Show answer and solution

Correct answer: C. Sections 90 and 90A

Section 102(11) ties tax treaty to agreements under section 90(1) or 90A(1), the double taxation relief provisions.

Open this question →

For a company, which person is a connected person under the GAAR definition?

  1. Its principal banker
  2. Its statutory auditor
  3. A director or his relative
  4. A holder of a single share
Show answer and solution

Correct answer: C. A director or his relative

Section 102(4)(b) includes any director of the company or any relative of such director as a connected person.

Open this question →

How to practise

  1. Choose a Anti-avoidance Provisions question and try to work out your answer.
  2. Open the question to check the correct answer and read its worked solution.
  3. Continue in the app for bite-sized lessons, explanations and review with Quill. You can start without creating an account.

More Taxation topics

Double TaxationTransfer PricingDeduction, Collection and Recovery of TaxIncome Tax DepartmentPermanent Account NumberBasic ConceptsAppeals, Revision and Dispute ResolutionSpecial Tax Regimes for Companies