Articleship assessment test ICAI – Level 2 | International Tax MCQ – Avoidance Measures

Articleship assessment test ICAI – MCQ

Question 1:- 

Which of the following are tax-Avoidance Techniques :-

(a) Controlled Foreign Company

(b) Treaty Shopping

(c) Use of tax havens

(d) All of the above




Question 2:- 

Under the “business purpose rule”, taxpayer is required to :-

(a) Specify business purpose of a transaction

(b) Justify commercial reasons of entering a particular transaction

(c) Justify that such transactions are not limited for tax avoidance

(d) Both B and C

Question 3:- 

Under the “substance over form rule”:-

(a) Literal wording of legal provision prevails over economic, or social reality

(b) Economic, or social reality, should prevail over the literal wording of legal provisions

(c) Substance of transaction should not get precedence over the form presented in documents

(d) None of the above

Question 4:- 

Faces of substance over form rule :-

(a) Legal v. Economic substance

(b) Sham transactions

(c) Wrong Characterization

(d) All of the above




Question 5:-

In a sham transaction:-

(a) The ‘tax avoiders’ give effect to a transaction, which they do not carry out

(b) The ‘tax avoiders’ give effect to a transaction, which they do not intend to carry out

(c) Cover up another transaction

(d) All of the above

Answers

(d) All of the above

(d) Both B and C

(b) Economic, or social reality, should prevail over the literal wording of legal provisions

(d) All of the above

(d) All of the above

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