Test Your Knowledge of Taxing Companies
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Questions and Answers

What are the two approaches to determine a company's tax residence?

  • Legal and economic (correct)
  • Physical and virtual
  • Historical and current
  • Domestic and international

    • What is the legal approach to determine a company's tax residence?

  • Tax residence of shareholders
  • Principle business location
  • Place of management
  • Place of incorporation and registration (correct)

    • What is the economic approach to determine a company's tax residence?

  • Historical and current location
  • Physical and virtual location
  • Place of management, principle business location, and tax residence of shareholders (correct)
  • Place of incorporation and registration

    • What is the primary test to determine a company's tax residence under the economic approach?

    <p>Central Management and Control</p> Signup and view all the answers

    What are the indicators used to determine Central Management and Control?

    <p>Where are the directors' meetings held, where does the decision to carry out operations emerge from, where is strategic control exercised, and where are the fundamental policies conceived and adopted as opposed to the place where they are carried out?</p> Signup and view all the answers

    What was the outcome of the Calcutta Jute Mills v Nicholson case?

    <p>The company was tax resident in the UK</p> Signup and view all the answers

    What was the outcome of the De Beers Consolidated Mines Limited v Howe case?

    <p>Decisions taken by the London directors were those which most amounted to central management and control</p> Signup and view all the answers

    What was the outcome of the Bullock v Unit Construction case?

    <p>All the subsidiaries physically located in Kenya were UK tax residents</p> Signup and view all the answers

    What is the test built upon the basis of the primary test of Central Management and Control?

    <p>Place of Effective Management</p> Signup and view all the answers

    What is the controversy surrounding Central Management and Control and Place of Effective Management?

    <p>Whether they are the same thing</p> Signup and view all the answers

    What was the outcome of the Calcutta Jute Mills v Nicholson case regarding the director in India?

    <p>The director in India was just a delegate and delegated authority was insufficient to constitute central management and control</p> Signup and view all the answers

    What were the factors examined by the court in the De Beers Consolidated Mines Limited v Howe case?

    <p>Frequency and composition of directors' meetings, nature and relative strategic importance of decisions taken in each location</p> Signup and view all the answers

    What are the two approaches to determine a company's tax residence?

    <p>Legal and economic</p> Signup and view all the answers

    What is the legal approach to determine a company's tax residence?

    <p>Place of incorporation and registration</p> Signup and view all the answers

    What is the economic approach to determine a company's tax residence?

    <p>Place of management, principle business location, and tax residence of shareholders</p> Signup and view all the answers

    What is the primary test to determine a company's tax residence under the economic approach?

    <p>Central Management and Control</p> Signup and view all the answers

    What are the indicators used to determine Central Management and Control?

    <p>Where are the directors' meetings held, where does the decision to carry out operations emerge from, where is strategic control exercised, and where are the fundamental policies conceived and adopted as opposed to the place where they are carried out?</p> Signup and view all the answers

    What was the outcome of the Calcutta Jute Mills v Nicholson case?

    <p>The company was tax resident in the UK</p> Signup and view all the answers

    What was the outcome of the De Beers Consolidated Mines Limited v Howe case?

    <p>Decisions taken by the London directors were those which most amounted to central management and control</p> Signup and view all the answers

    What was the outcome of the Bullock v Unit Construction case?

    <p>All the subsidiaries physically located in Kenya were UK tax residents</p> Signup and view all the answers

    What is the test built upon the basis of the primary test of Central Management and Control?

    <p>Place of Effective Management</p> Signup and view all the answers

    What is the controversy surrounding Central Management and Control and Place of Effective Management?

    <p>Whether they are the same thing</p> Signup and view all the answers

    What was the outcome of the Calcutta Jute Mills v Nicholson case regarding the director in India?

    <p>The director in India was just a delegate and delegated authority was insufficient to constitute central management and control</p> Signup and view all the answers

    What were the factors examined by the court in the De Beers Consolidated Mines Limited v Howe case?

    <p>Frequency and composition of directors' meetings, nature and relative strategic importance of decisions taken in each location</p> Signup and view all the answers

    What are the two approaches to determine the tax residence of a company?

    <p>Legal and Economic</p> Signup and view all the answers

    Which approach is more widely adopted to cope with the impact of technology and the digital economy?

    <p>Legal approach</p> Signup and view all the answers

    What are the factors that determine the residence of a company under the economic approach?

    <p>Place of management, principle business location, tax residence of shareholders</p> Signup and view all the answers

    What is the primary test used to determine the tax residence of a company under the economic approach?

    <p>Central Management and Control</p> Signup and view all the answers

    What are the indicators used to determine the central management and control of a company?

    <p>Where are the directors' meetings held? Where does the decision to carry out operations emerge from? Where is strategic control exercised? Where are the fundamental policies conceived and adopted as opposed to the place where they are carried out?</p> Signup and view all the answers

    In the Calcutta Jute Mills v Nicholson case, where was the company tax resident?

    <p>UK</p> Signup and view all the answers

    Why was the director in India in the Calcutta Jute Mills v Nicholson case unable to establish central management and control in India?

    <p>Because for all his powers, the director was still just a delegate</p> Signup and view all the answers

    In the De Beers Consolidated Mines Limited v Howe case, where was the central management and control of the company exercised?

    <p>London</p> Signup and view all the answers

    What were the factors examined by the court in the De Beers Consolidated Mines Limited v Howe case to determine the central management and control of the company?

    <p>Frequency and Composition of Directors' Meetings, Nature and Relative Strategic Importance of Decisions Taken</p> Signup and view all the answers

    In the Bullock v Unit Construction case, where were the subsidiaries physically located?

    <p>UK</p> Signup and view all the answers

    Why were the subsidiaries physically located in Kenya considered UK tax residents in the Bullock v Unit Construction case?

    <p>Because there were no Kenyan subsidiaries involved in matters of importance or minor importance affecting the central management and control</p> Signup and view all the answers

    What is the test built upon the basis of the primary test of central management and control?

    <p>Place of Effective Management</p> Signup and view all the answers

    Is there a controversy about whether central management and control and place of effective management is the same thing?

    <p>Yes</p> Signup and view all the answers

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