International Taxation国际税收 试卷1

试题一

I. True or false (10 marks, 2marks/each)

1. The direct credit is a credit granted to a domestic corporation for the foreign income taxes paid by a foreign affiliated company.( )

2. Generally, many countries use the presence period criterion to identify the residence of legal entity.( )

3. The international double taxation can be divided into systematic double Taxation and juridical double Taxation.( )

4. Source country may take methods of exemption or credit to its resident foreign income. ( )

5. According to the UN model treaty, contracting states may adopt tie-breaker rules to identify the residence of legal entity.( )

Ⅱ．Please explain the following key terms. (12 marks,3 marks for each key term )

1. deduction method

2. withholding tax

3. Treaty shopping

4. Source tax jurisdiction

Ⅲ. Questions ( 28 marks )

1. Please explain the traditional and additional methods under Arm’s Length Principle.(5

marks)

2.What factors are used by OECD to identify whether a jurisdiction is a tax haven or

not?(3 marks)

3. Please explain the differences between tax evasion and tax avoidance.(6 marks)

4.Please explain the operation of a direct conduit company by a figure.(6 marks)

5.Please explain the main features of arm’s length principle and p rinciple of Global

Apportionment. (8 marks)

Ⅳ. Case Study ( 20 marks )

1.XCo. is a corporation organized in State A and YCo is a corporation organized in State B. Both XCo and YCo are controlled by ZCo which is organized in State C. The corporate income tax rates of State A and State B are 50% and 16% respectively. In some given year, XCo produces a batch of goods at a cost of USD5,000,000 and sells the goods to YCo at USD5,000,000. The arm’s length price of the above goods is USD8,000,000 in State A’s market. YCo resells the goods to unrelated con sumers at USD8,2000,000 in State B. ZCo has no income this year. Please answer the following questions:

(1) Which kind of tax avoidance technique has been used in the above case? ( 5 marks)

(2) Compare the transnational corporation’s income tax burden und er market price and transfer price. ( 5 marks)

(3) Which kind of anti-avoidance measure could be taken? ( 5 marks)

2、An American company sold its properties in some taxable year, the transfer businesses are as the followings:

(1)transferred a house property situated in China to a Japanese company(1 marks)

(2)transferred the right to use a plot of land in China to a Chinese resident