22 Questions
What is the main objective of National Wealth Maximization?
Ensuring the country gets its fair share of revenue
What does tax equity aim to achieve?
Imposing equal taxes on taxpayers with equal income
What is the primary concern of economic efficiency in taxation?
Maintaining economic status and developing national competitiveness
What is the key consideration for international compatibility in taxation?
Imposing harsher international taxes than other countries
What does capital import neutrality focus on?
Concern about how foreign and local investors are taxed
What is the purpose of double tax treaties (DTA)?
To prevent tax evasion and solve double taxation
What is the basic rule for permanent establishments (PEs) according to the OECD model?
PEs should not be liable for tax on profits earned in a country unless they have a real and significant nexus with that country
What is the purpose of Capital export neutrality in the tax regime?
To ensure neutrality in the way the tax regime taxes income derived from investing at home or abroad
What are the factors determining residence for legal entities according to the text?
Place of management, head office, administrative management, etcetera
What is the purpose of non-residents withholding taxes according to the text?
To deduce taxes at the time that income is paid to the foreigner by the payer in the country of source income
Which objective of taxation focuses on imposing equal taxes on taxpayers with equal income or equal ability to pay?
Tax equity
What does capital import neutrality in international tax rules primarily focus on?
Equal taxes for foreign and local investors
Which concern of taxation emphasizes the minimization of 'dead-weight' and administrative costs?
Administrative efficiency
In the context of international tax, what does the principle of international compatibility aim to prevent?
Imposition of harsher international taxes than other countries
In the context of taxation, what is the purpose of the exemption with progression method?
To ensure that residents are not taxed on foreign income
What does the concept of Capital Export Neutrality in the tax regime emphasize?
Maintaining neutrality in the taxation of income from domestic and foreign investments
What is the main purpose of non-residents withholding taxes in the context of taxation?
To deduct tax at the time income is paid to the foreigner by the payer in the source country
What does Controlled Foreign Companies refer to in the context of taxation policy considerations?
Foreign companies controlled by resident individuals
In double taxation, what does juridical double taxation refer to?
Taxation of the same income by two or more countries
What is the basic rule for permanent establishments (PEs) according to the OECD model?
A fixed place of business through which an enterprise partially carries on its activities
What does Aggressive Tax Planning (ATP) involve in the context of taxation?
Taking advantage of technicalities or mismatches between tax systems to reduce tax liability artificially
What is the key consideration for international taxation in determining residence for individuals?
Nationality and citizenship
Test your knowledge of taxation principles, including tax equity, economic efficiency, and administrative efficiency. Explore topics such as national wealth maximization, cross-border transactions, and international tax compatibility.
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