1、国际税收整理课后习题整理1.Base for international tax: country taxation1.What is international tax? What does it mainly address?答：International tax means a series of tax issues resulting of different tax rules and conflicting jurisdictions made by countries, and solutions.The base of International tax is differe
2、nt countries taxation.2.International income taxation1.How does a country generally design its income taxation system?答： territorial（届地）:taxation only of in-country income,e.g. Hong Kong;2residency倨人）:taxation of all income of residents and/or citizens;3exclusionary（例夕卜）：specific inclusion or exclus
3、ion of certain amounts, classes, or items of income in/from the base of taxation;4Hybrid（混合）:e.g. USA , UK2.Why is it important to make clear source of income?答： in a territorial system, source often determines whether or not the income is taxed;source of income is also important in residency system
4、s that grant crs for taxes of other jurisdictions.3.Tax residence1.What is the main difference between a tax resident and a non-tax resident for tax liability purpose?答： a tax resident: world-wide tax liability;2a non-tax resident: limited tax liability.2.Can you name some tests in determining wheth
5、er a person is a resident?答： For corporation:place-of-incorporation test , place-of-management test, residence-of-the shareholders test;2For individual:a fact-and-circumstances test/ domicile test , number of days test, intention test.3.Take an example to prove how different countries apply differin
6、g tests to judge a persons residence?答： China: for individual: domicile test , number of days test（a full year）;for corporation: place-of-incorporation testor place-of-management test.Ireland: for individual: number of days test（183 days） ,domicile testfor corporation: now :place-of-incorporation te
7、stpast :place-of-management test.4.Income source jurisdiction and rules1.What is source jurisdiction?答：Its an important form of state tax sovereignty. It determines that income from home country is subject to tax.2.How to determine the source of employment and personal services income?答：According to
8、 the place of proving services. For independent services, it refers to the fixed place; For dependent services, it refers to the place where services are performed.2According to the payment place of service income.3.How to determine the source of location of business income? What is PE?答： There are
9、chiefly two test: one is the PE rule , the other is the place of transaction or trade or signing contracts rule.PE means permanent establishment, and it refers to a fixed place of business,suchas an office, branch, factory or mine, which generally gives rise to income or value added tax liability in
10、 a particular jurisdiction, a dependent agent or an employee is also treated as a PE. And PE is an important basis to judge whether business income is taxable by a country.4.How to determine the source of investment income?答： For dividend, test: residence country of the dividend payer;2For interest,
11、 test: generally: residence country of the interest payer;Some country: signing place of loan contract, or residence country of loaner.3For royalties, test: place of usage; residence country of royalty owner; residence country of royalty payer.4For rents, test: usage place of the property; signing p
12、lace of renting contract; residence country of rent payer.5.International double taxation and relief1.What is International double taxation?答： Double taxation occurs when tax is paid more than once by two or more jurisdictions on the same taxable income or asset ,and it can be legal or economic. 国际重
13、复征税是指两个或者两个以上的国家、地区 ，对同一或不同跨过纳税人的同一跨国征税对象征收相同或相似的所得税。 一般包括法律性重复征税和经济重复征税。2.What is the main difference between legal International double taxation and economic International double taxation?答： Legal double taxation taxes the same taxable earning or asset. Economic double taxation taxes different tax
14、payers.法律性重复征税：同一跨国纳税人（总公司、分公司届于同一纳税人） ；经济重复征税：总公司、分公司分届不同跨国纳税人。3.Take an example to prove International double taxation arising from the same tax jurisdiction and relief.答：4.What approaches are used to solve International double taxation resulting from residence-source conflicts?答：Tax treaties of O
15、ECD and the UN can be used to solve international double taxation; there is also uniformity in source rules and international practices for solving the problem.Besides,the deduction method, the exemption method and the credit method are another means of solving the problem .Unilateral,bilateral, mul
16、tilateral approaches.5.What is the main difference between deduction method and credit method?答： The credit method : foreign taxes paid by a resident taxpayer serve to reduce domestic taxes . The deduction method : it allows residents and citizens to deduct foreign taxes paid as a current expense in
17、 computing their taxable worldwide income.抵免法：将国内国外所得乘以税率减去在国外所得取得的收入的税额。扣除法：税前扣除视同费用；6.Which specific relief methods does international community agree to?答：The OECD and the UN models only authorize the credit and exemption methods, not the deduction method .6.International tax avoidance and tax ha
18、ven1.What is tax haven.答：a country or territory which has no income tax or little income taxation, and is easy to be used to avoid or evade taxation of relevant countries or territories.2.How many types of tax havens are there in the world?答： Nil-tax havens: no income tax, no capital gains tax, no i
19、nheritance tax .2Foreign source exempt havens: tax you on locally derived income only.3Law-tax havens : some may have special concessions ;some uses tax double treaties.3.Name some Non-tax features of tax heavens.答：Privacy: financial affairs be kept private from prying eyes.Easy of residence: easy t
20、o obtain permission to live.political stability ;convenient communications: good telephone and broadband internet access and easy travel.Lifestyle factors: good schooling and climate and so on.4.How does an international taxpayer make use of a tax haven?答： make use of transfer pricing to transfer pr
21、ofit;abuse international tax treaty;make use of trust investment to transfer property;set up internal insurance company;thin capitalization;choose advantaged forms of enterprise organization;Emigration;5.Does China has anti-tax-haven rules?答：Yes. In CFC rules.6.What are the advantages of being a tax
22、 haven?答：attract FPI; promote employment; develop economy; reduce taxation; promote cultural exchanges.7.What are the reasons for some jurisdictions desiring to be tax havens?答：There are many advantages of being a tax haven. For example: attract FPI; promote employment; develop economy; reduce taxat
23、ion; promote cultural exchanges.7.International transfer pricing and rules1.What is international transfer pricing ?答：International transfer pricing refers to a kind of non-pricing action taken by related parties within the group while carrying on purchasing and selling business. It can be used as a
24、n important instrument of avoiding tax .2.Take an example to prove that international transfer pricing can be used to avoid international tax?答：3.What are the main contents of international transfer pricing rules ?答： A country will set up International transfer pricing rules to prevent transnational
25、 enterprise using transfer pricing to evade tax. It contains those details:Adjustment: Arms length price (1.CUP, 2.RP, 3.CP); Formulary apportionment method; Advanced pricing agreement.4.What is formulary apportionment method?答： Attributes profit or loss to each jurisdiction based on factors such as
26、 the proportion of sales、assets or payrolls .5.Talk about transfer pricing rules in China ?答：8.Controlled foreign corporation and rules1.How does a multinational firm use a CFC to avoid tax ?答： Companies form foreign subsidiaries in tax havens and shift income to those subsidiaries ,the tax was avoi
27、ded until the tax haven country distributes a dividend to the shareholding company .E.g. CCo is a resident corporation in China with tax rate 25%, while BCo is a company in the British Virgin Islands with tax rate 0, which is jointly held 100% of total shares by CCo.1)If CCo sells the products direc
28、tly to HCO in Hong Kong at 8 million, and the cost of these products is 4 million, the amount of tax is 1 million.2)If CCo sells products to BCo at non-market price 4 million,and the cost of these products is 4 million. And BCo sells the products to a company in Hong Kong at market price 8 million.
29、If the profit 4 million isnt distributed, the total amout of tax is 0.2.What is CFC?答： CFC are those corporations which are registered in low-tax or no-tax countries and regions ,but controlled by native residents and used for tax avoidance.3.What is the relationship between deferral system and CFC
30、rules ?答：Deferral system is the basis of CFC rules , generally speaking, no deferral system, no CFC rules. And china is a exception that has no deferral system but has CFC rules .4.What are the main contents of a countrys CFC rules?答： control test. Different countries have different standards ,in Ch
31、ina, the test is controlled by all shareholders at 50% and single at 10%.2tax haven tests. There are designated jurisdiction(blacklistwhitelist、greylist) and global approach.3taxpayer definition.4recognition of taxable income.5exception rules. CFC derives income through active businessactivities ,lo
32、cated in a non-low-tax rate country or region which is designated by the SAT ; annual profits of the CFC are not more than 5 million .5.When was chinas CFC rules established ?答：2008.6.Can you name some differences between china and foreign jurisdictions for purposes of CFC rules ?答：US CFC rules aims at preventing its citizens and corporations from artificially deferring otherwise taxable income through use of
