1) Which ONE of the following is regarded as the direct tax?
A Value added tax
B Capital gains tax
C Excise duties
D Property tax
2) In many countries employees’ earnings have tax deducted by their employers before being paid to them. This is sometimes referred to as “Pay-as-you-earn”
3) UI has the following details:
(i) Incorporated in Country A.
(ii) Senior management hold regular board meetings in Country B and exercise control from there, but there are no sales or purchases made in Country B.
(iii) Carries out its main business activities in Country C.
Assume all three countries have double taxation treaties with each other, based on the OECD model tax convention. In which country/countries will UI be deemed to be resident for tax purposes?
A Country A
B Country B
C Country C
D Countries B and C
4) DF, a small entity resident in Country X, purchased its only item of plant on 1 October 2011 for $200,000.
DF charges depreciation on a straight line basis over 5 years.
DF’s deferred tax balance as at 30 September 2013, in accordance with IAS 12 Income Taxes is: