Corporate Tax Exam Questions And Answers links:
[DOWNLOAD] Corporate Tax Exam Questions And Answers
Posted on 18-May-2021
Income received or deemed to be received in India during the previous year but it accrues outside India during the previous year, or Income received outside India during the previous year but accrues in India during the previous year. Answer : The...
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[FREE] Corporate Tax Exam Questions And Answers
Posted on 10-May-2021
Answer : A resident but not ordinary resident is the one who is not the resident in India for 9 out of the 10 preceding previous years or he has during the 7 preceding years been in India for a period of, or period amounting to days or less. Who Are...
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Taxation Interview Questions & Answers
Posted on 11-Apr-2021
What Is Tax Audit? Answer : A tax audit is assessment of an organization's or individual's tax return by Internal Revenue Service IRS in order to find out that the income and deductions are recorded accurately. What Is Tax Refund? Answer : The excess tax paid by an individual than the actual owed is returned by the government which is known as tax refund.
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Corporation Tax
Posted on 3-May-2021
After taking into consideration income tax, withholdings, tax deductions or credits and other factors; you file income tax for the year, after that you will receive a tax refund. What Is Capital Gain? Answer : Capital gains' means the profit earned from the sale of an asset. When the Capital Asset is being sold or transferred, the profit or gains arising out of it or you can term that as the difference between the actual price at which the asset was acquired and the price at which it is sold or transferred.
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20 Questions On Tax And Covid-19
Posted on 18-Apr-2021
A long-term capital gain is the profit that arises with the sale of an asset that has been on hold for a definite period. This period ranges from one year to three years across different asset classes. It is different from short term capital gains because short term capitals are kept for short period only that is less than a years. What Is Deferred Tax? Answer : A tax liability that a company has to pay but does not pay at that current point and it will be responsible for paying it in future is termed a deferred tax. Deferred tax occurs due to the difference in a company's balance sheet, due to the differences between accounting practices and tax regulations. What Is Working Capital? Answer : Working capital is the difference between a company's current assets and its current liabilities. Working Capital is used into day to day operations of any business. What Is Taxation? Answer : Taxation is one of the mode used by the government to finance their expenditure by imposing charges on citizens and corporate entities.
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Tax Law Questions
Posted on 28-May-2021
Answer : There is a provision in India to get a refund for an overpayment of taxes along with interest. When you have to claim a refund you need to file the income tax return within a specified period. It resulted in decveloping a simpler and business friendly sales tax system. The Agreement decreases costs and administrative burdens of sales tax collection on retailers, especially those operating in multiple states.
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Corporate Tax
Posted on 13-May-2021
Explain Deferred Tax Asset? Answer : When a firm has overpaid on taxes then the amount is recorded in the balance sheet as deferred asset tax which is also known as provision for future taxation. Deferred tax asset arises when the firm, pays taxes early or have paid excess of tax and is entitled to get some money back from the tax authorities. Define Deferred Tax Liability? Answer : A tax liability that a company owes and does not pay at that current point, although it will be responsible for paying it at some point in the future. Deferred tax liability DTL is a balance sheet item that accounts for the temporary difference between taxes that will come due in the future and taxes paid today.
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Income Tax And Corporate Tax Planning Section 3
Posted on 7-Mar-2021
The unrealized tax that is put into account comes under deferred tax liability. Depreciation is the main source or the type of an item of deferred tax liability. Answer : When the assets of the company are written off over a number of years for the purpose of their replacement or renewal and not depending on the life of asset is termed as amortization. It is different from depreciation, which is periodic writing off of the asset based on its normal life expectancy. Impairment can be termed as the fall in the value of the asset due to any physical damage to the asset, obsolescence, or due to technological innovation. Impairments can be written off. Simply you can say that impairment is the difference between the fair value and the carrying value of an asset. What Is Inter Company Reconciliation? Answer : Every year commonly controlled company prepares a combined or consolidated financial statement for tax and reporting purposes.
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Business Income And Expense Questions And Answers
Posted on 1-Apr-2021
Inter Company Reconciliation ICR is the process that helps parent company to split from its subsidiaries companies by location. Each year, commonly controlled business must prepare a combined or consolidated financial statement for tax and reporting purposes. The inter company accounting process is an important process for parent companies with subsidiaries or companies split by location.
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Schwarz And Lathrope's Black Letter Outline On Corporate Taxation, 9th
Posted on 23-Mar-2021
Chidambaram to restrict people from evading tax on capital gains. What Is Permanent Account Number pan? Answer : Permanent Account Number PAN is a ten-digit alphanumeric number, which is issued by the Income Tax Department in the form of laminated card as PAN enables the department to link all kinds of transactions of the person with the department. PAN helps the department in maintaining a fair record of every persons transactions through a ten digit number in order to avoid tax evasion in any case.
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Questions & Answers: Taxation Of Business Entities
Posted on 24-Mar-2021
Answer : Profit is the amount that is left after deducting expenses from revenue that makes the receipt of revenue possible. There are two streams of earnings that is direct earnings and indirect earnings. Direct earnings are incurred from main activities and indirect earnings are incurred from other activities so the profits is calculated as gross profit and net profit. Gross profit is the amount of revenue from which trading expenses has been deducted expenses related to main activities of the business. Net profit is the amount of revenue that includes incomes from other activities. Gain is the amount that is earned on selling assets which is not included in the inventory of the business. This sales activity is not the actual trading and these sales does not includes goods that are sold on regular basis.
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Corporate Tax Return Guidance Notes: Section 7
Posted on 5-May-2021
What if my client does not have the support requested? If your client cannot provide the requested support, we will not issue the refund requested. No further action is needed or will be taken on the account. What if my client provided support and the refund is not released? Either the information provided did not support the amounts claimed on the Schedule C or your client did not provide all the information requested. An administrative hearing is a formal proceeding conducted pursuant to the rules adopted by the Department and is presided over by an administrative law judge. An attorney representing the Department will be present. Your client may represent themselves or have an attorney there to represent them.
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International Tax Quiz
Posted on 14-Mar-2021
As a paid preparer, what is EITC due diligence? What are the consequences for not meeting my due diligence and filing an incorrect return claiming EITC? Incorrect EITC returns may adversely affect both you and your clients. The consequences may include: Your clients may be subject to accuracy or fraud penalties and be banned from claiming EITC for a period of 2 or 10 years depending on the reason the Earned Income Tax Credit was disallowed. The most common reason for assessing due diligence penalties is failure to meet the knowledge requirement. This could include revocation of your PTIN.
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Current Affairs 2021 PDF
Posted on 8-Apr-2021
Asses the likely benefits and drawbacks to KRA arising from this integration. Outline the circumstances under which a company may apply for exemption from the shortfall distribution requirements. It involves determining in advance the tax effect of any proposed business action and decision. The aims of tax planning are to i. Achieve the most advantageous financial position from business transactions measured in terms of direct tax savings and improved cash inflows. Ease tax administration internally in terms of methods of accounting for tax, records to be maintained and tax reports to be prepared. Achieve the highest level of compliance with the tax laws. This is due to better co-ordinated approach to tax audits and taxpayers education. Drawbacks from integration. Previously, it was possible to place responsibilities for attaining targets on various commissioners be it for customs and excise VAT, Income Tax etc. Variations were easier to spot. Not possible now since all these are integrated into one.
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SEE Sample Test Questions Part 1 | Internal Revenue Service
Posted on 17-Mar-2021
Q: How would the tax value method cut income tax law? A: The tax value method would help to reduce the size of the income tax law, perhaps by around 40 per cent. The reduction in the size of the law would come in two ways. For example, perhaps the debt forgiveness provisions in Schedule 2C of the Act and the 24 or so pages of existing law in sections 82KH to 82KK of the Act that deal with tax avoidance schemes could go. The Income Tax Assessment Act has to be rewritten anyway, to complete the work of the Tax Law Improvement Project, whether or not the tax value method proceeds — this project halved the size of those provisions which were rewritten.
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Exam Study Guide
Posted on 18-Apr-2021
The redraft of the key capital gains tax rules into the tax value method format is an example of the significant reduction in income tax law possible under the tax value method. The tax value method redrafting has reduced the size of the capital gains tax rules by more than 70 per cent so far, and would reduce 40 capital gains tax events to 8 at most. There are other areas where the tax value method could reduce or eliminate existing provisions. The provisions for deducting exploration and prospecting expenses in Subdivision H of the Act. A whole lot of the trading stock rules that already use a system very similar to the tax value method.
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SEE Sample Test Questions Part 1
Posted on 20-Mar-2021
The hire purchase provisions in Division of the Act. The limited recourse debt provisions in Division of the Act. The securities lending provisions in section 26BC of the Act. Further information A new income tax Act written using the tax value method could be around pages this number of pages would be necessary to reproduce current income tax policy, such as adjustments and reductions in taxable income. The income tax legislation has grown from 81 pages in to around pages in Q: Have the many alternatives to the tax value method been considered? A: There are many alternatives to the tax value method. The income tax regimes of most countries are unique. There are also alternative tax bases, like expenditure taxes or wealth taxes. The Review of Business Taxation discussion papers considered an alternative approach based on the structure of the current law. The Board of Taxation has only been asked to evaluate the tax value method, but has indicated that it will consider any alternative the business community presents.
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Past Papers | The Association Of Taxation Technicians
Posted on 28-Apr-2021
The tax value method aims to broadly reproduce present outcomes. Alternative systems are more likely to change outcomes. Further information In its consultative document A platform for consultation pages the Review of Business Taxation put forward two options — build reforms into the existing structure or the tax value method. A: The tax value method has the potential to save the community time and money by reducing the need for: taxation rulings and determinations litigation taxpayer contact with the Australian Taxation Office ATO. For example, the analysis to date of capital gains tax related matters indicates that the tax value method may reduce the need for capital gains tax related taxation rulings and taxation determinations by up to 28 per cent and litigation by around 60 per cent.
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Questions & Answers: Taxation Of Business Entities | LexisNexis Store
Posted on 23-May-2021
From this analysis, significant community savings would result from reducing the number of annual: telephone calls by around requests for amendment by around 17 letters by around 14 objections by around private rulings by around Further information Attachment B to Tax value method: information paper contains a general overview of the potential impact of the tax value method on rulings, cases and taxpayer interactions with the ATO. This paper is on the Board website www. A: You could not do all that the tax value method would do by fine-tuning the current law, although you could do some of the things the tax value method would do. For instance, you could fix black holes and standardise some concepts in the current law without the tax value method.
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Questions And Answers About Filing Your Taxes
Posted on 17-Mar-2021
You can never see the tax base as a big picture but are instead stuck with a patchwork view. That hampers good policy analysis and prevents policy transparency. You obscure the patterns inherent in the law and so make it harder to learn and understand, inevitably imposing higher compliance costs. Back to top Q: Would the tax value method be revenue neutral? Some have claimed that the tax value method departs from the original Review of Business Taxation proposal by not being revenue neutral for all taxpayers. A: The overall result of introducing the tax value method is intended to be revenue neutral. The tax value method would not produce the current outcome in every case for every taxpayer. Policy changes to be implemented at the same time as the tax value method such as removing black holes and the taxation of financial arrangements would change current outcomes in some cases. The standardisation inherent in the tax value method would also change outcomes in some cases.
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Answers To Corporate Tax Questions - Hancock Askew & Co
Posted on 22-Apr-2021
Significant changes will be identified and costed. The Review of Business Taxation report A tax system redesigned never claimed that every taxpayer would get exactly the same result under its recommendations; merely that the overall result would be revenue neutral. Further information The Review of Business Taxation report said that the overall result of its recommendations would be revenue neutral page A: As no decision has yet been made about whether or not the tax value method proceeds, views about its ultimate fate are only guesses. The Government has set in train a process of developing the legislation so that the Board can evaluate it before it makes a recommendation to the Government. The resource commitment is fairly modest. In the Australian Taxation Office, only 7 legislative officers out of approximately that is, about 6 per cent are working full-time on the tax value method prototype legislation.
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55 Taxation Interview Questions And Answers
Posted on 6-Mar-2021
If the tax value method proceeds, it would create leverage to complete that task more efficiently. For example, the redraft of the key capital gains tax rules into the tax value method format has reduced the size of the capital gains tax rules by more than 70 per cent. It achieved that by removing the many rules that become redundant under the tax value method. Q: When will the tax value method be introduced? A: If the tax value method is to be introduced, it is still some way off. The Board of Taxation is evaluating and testing the tax value method. The tax value method was recommended by the Review of Business Taxation in The consequences of introducing the tax value method will be carefully thought out by the Board before it makes any recommendations to the Federal Government about introducing the tax value method.
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GST (Goods And Service Tax) - MCQ Questions And Solutions With Explanations
Posted on 3-Mar-2021
Board chairman Dick Warburton is convinced of the need to change the old tax laws. But he believes such a major change — if it was to proceed — deserves time to get it right, the first time. The big question that needs to be answered is whether the benefits of any change would be greater than the cost of transition. This transitional cost will be an important factor in the evaluation of the tax value method and its acceptance. Further information The Board of Taxation has released a package of material to assist the evaluation of the tax value method.
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GK Quiz And Answer On Indian Economy Tax System In India
Posted on 26-May-2021
The Board is seeking written submissions to assist it in evaluating the feasibility of introducing the tax value method. Submissions should be made by 30 April Q: Are the transitional costs of implementing the tax value method too high? A: The cost of transition is a significant factor in the evaluation and acceptance of the tax value method. There would be transitional costs in a change to the tax value method.
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Answers To Corporate Tax Questions
Posted on 18-Apr-2021
They would be lower for some than for others. The effect on individuals, for example, is expected to be minimal. A decision will have to be made about where the advantage lies for the Australian taxpaying population as a whole, taking into account a range of factors, including the size and duration of transitional costs. However, it is not yet possible to measure the transitional costs. The Board is seeking written submissions to assist it in evaluating the feasibility of introducing the tax value method, including the transition costs. Q: Why is such an important change given such a limited period for consultation?
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Top 25 Income Tax Questions & Answers 2021
Posted on 12-Mar-2021
A: This is not the first round of consultation. The tax value method was recommended by the Review of Business Taxation back in The Board has sought wide community involvement, publishing all material developed on its website, holding a consultative conference in July and meeting with key stakeholders. The current prototype legislation released by the Board is the fourth iteration. All previous prototypes were also placed on the Board website for comment. The Government has asked for a recommendation from the Board by June Further information The Board of Taxation released a package of material to assist the evaluation of the tax value method on 6 March Q: How is the tax value method being developed, evaluated and tested? A: The Board of Taxation has developed prototype legislation and other supporting material to evaluate and test the tax value method. The Review of Business Taxation stated that the tax value method has a number of benefits.
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Business And Corporate Taxation Quiz | High Speed Training
Posted on 25-May-2021
The Board wants to confirm whether these benefits are real through a process of public consultation. The Board has commissioned analysis of particular aspects of the tax value method. The Board formally released legislative and administrative material to help evaluate the tax value method on 6 March The consequences of introducing the tax value method will be carefully thought out by the Board before it makes any recommendations to the Federal Government. Chapter 3 of Tax value method: information paper outlines the evaluation and testing process. Back to top Q: Is the limited legislation drafted sufficient to make a decision about the merits of the tax value method?
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20 Questions On Tax And Covid
Posted on 24-May-2021
There is a suggestion that the prototype legislation drafted so far is insufficient to make a decision about the merits or otherwise of the tax value method. A: The tax value method prototype legislation demonstrates what tax legislation would look like if the tax value method were introduced. The prototype legislation covers major areas of the current law and proposed new areas, including the tax value method core rules, depreciation, rights, accruals under the taxation of financial arrangements and capital gains tax.
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Questions And Answers | Board Of Taxation
Posted on 27-Mar-2021
While provisions in the Income Tax Assessment Act must be rewritten whether or not the tax value method is introduced, many provisions in the Income Tax Assessment Act would not be substantially affected by the tax value method. Further information The Board of Taxation has developed prototype legislation and explanatory material to evaluate and test the tax value method.
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