alleryStart learning →Which of these is a tainted element under section 96(1)?
ARisk reduction for the business
BRights not created at arm's length
CApproval by the statutory auditor
DDocumentation in a written deed
Answer & Solution
Correct answer: B. Rights not created at arm's length
Creating rights or obligations that persons dealing at arm's length would not ordinarily create is clause (a) of section 96(1).
Keep practising Anti-avoidance Provisions
Browse all Anti-avoidance Provisions questions for CA Final, or explore more Taxation topics.
Related questions
Accounting substance over form shows economic reality, not just:Which BEPS tool is easy to create without moving assets, functions or personnel?Which asset type is described as the raw material of tax avoidance in BEPS planning?BEPS Action 12 deals with disclosure of what?Which payments do multinationals use to erode a higher-tax base?Base erosion and profit shifting involves moving profits from higher-tax to:For US CFC purposes, a US Shareholder owns at least what share of the foreign corporation?Under US rules, a foreign corporation is a CFC if more than what share is owned by US Shar