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CA Final Base Erosion and Profit Shifting — practice questions — page 2

Explore 49 free Base Erosion and Profit Shifting questions in CA Final Taxation. Open each question or exercise to read its content, reference answers and available explanation.

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Base Erosion and Profit Shifting questions and exercises with answers

Showing questions 31–49 of 49.

The first bilateral treaty using the PE concept was between which parties?Read the answer and worked solution →Action 7 restricts PE exceptions to activities of what nature?Read the answer and worked solution →What does the abbreviation DTAA stand for?Read the answer and worked solution →Tax treaty benefits are generally available to which persons?Read the answer and worked solution →Which clause resolves dual residence under a treaty?Read the answer and worked solution →Most treaties reduce or eliminate withholding tax on which payments?Read the answer and worked solution →If domestic law gives a lower rate than a treaty cap, which rate applies?Read the answer and worked solution →Who conducts treaty dispute resolution procedures for a country?Read the answer and worked solution →Limitation on benefits articles aim to prevent what?Read the answer and worked solution →When was the OECD Tax Information Exchange Agreement released?Read the answer and worked solution →Which Indian Income-tax Act section gives bilateral relief where a DTAA exists?Read the answer and worked solution →Section 91 of the Income-tax Act gives relief in which situation?Read the answer and worked solution →During the India-Mauritius transition period, tax was limited to what share of the domestic rate?Read the answer and worked solution →The foreign tax credit method suits countries that tax residents how?Read the answer and worked solution →Transfer pricing rules in most countries are based on which principle?Read the answer and worked solution →Which method prices goods at actual cost plus a fixed markup?Read the answer and worked solution →The best method rule requires choosing the method that gives what?Read the answer and worked solution →In which year did the OECD first issue its transfer pricing guidelines?Read the answer and worked solution →Why is the CUP method hard to apply to unique intangibles?Read the answer and worked solution →

Worked practice questions

The first bilateral treaty using the PE concept was between which parties?

  1. Austria-Hungary and Prussia
  2. France and Great Britain
  3. Germany and the Netherlands
  4. United States and Canada
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Correct answer: A. Austria-Hungary and Prussia

The 1889 treaty between the Austro-Hungarian Empire and Prussia first used the concept in international tax law.

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Action 7 restricts PE exceptions to activities of what nature?

  1. Long-term contractual
  2. Preparatory or auxiliary
  3. Purely domestic in scope
  4. Revenue generating in scope
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Correct answer: B. Preparatory or auxiliary

Exceptions are limited to activities of a preparatory or auxiliary nature.

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What does the abbreviation DTAA stand for?

  1. Deferred tax adjustment accord
  2. Direct tax allocation arrangement
  3. Domestic tax assessment agreement
  4. Double tax avoidance agreement
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Correct answer: D. Double tax avoidance agreement

A DTAA is an agreement between two countries to avoid or mitigate double taxation.

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More Taxation topics

Double TaxationTransfer PricingDeduction, Collection and Recovery of TaxIncome Tax DepartmentPermanent Account NumberBasic ConceptsAnti-avoidance ProvisionsAppeals, Revision and Dispute Resolution