12 Questions
What is the primary purpose of a tax treaty?
To avoid double taxation of income arising from cross-border transactions or to avoid simultaneous taxation in two different jurisdictions
Which of the following is NOT considered a tax treaty benefit?
Taxation of business profits in the country of residence
What document is required to establish that the non-resident income recipient is entitled to tax treaty benefits?
A Tax Residency Certificate (TRC)
What is the concept of 'reciprocity' in the context of tax treaties?
The granting of tax benefits to foreign nationals upon proof that Filipinos residing in their country are given equal tax benefits
Which of the following is NOT a method of eliminating or mitigating double taxation?
Taxation of business profits in the country of source
What is the purpose of a tax treaty between contracting states/countries?
To reconcile the national fiscal legislations of the contracting states/countries to help the taxpayer avoid simultaneous taxation
Which of the following is NOT an element of direct double taxation?
Imposed by different taxing authorities
What is the primary reason why direct double taxation is considered objectionable and legally objectionable?
It violates the concept of equal protection and uniformity of taxation under the Constitution
Which of the following types of income or transactions is NOT listed as potentially subject to direct double taxation?
Employment income
Indirect double taxation, as opposed to direct double taxation, is considered:
Not legally objectionable
What is the primary purpose of methods for eliminating or mitigating double taxation?
To ensure equal protection and uniformity of taxation
Which of the following statements is TRUE about direct double taxation?
It involves taxation of the same object or subject matter by the same taxing authority within the same jurisdiction
Test your knowledge on the issue of double taxation in crossborder transactions, including the potential application of two taxes for business profits, dividends, interest, royalties, and capital gains. Understand why direct double taxation is considered oppressive and inequitable.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
