International-Taxation国际税收-试卷5.doc

试 题 四 I. True or false (10 marks, 2marks/each)1. The transfer price is a price lower than the market price.( )2. Generally, many countries use the domicile criterion to identify the residence of legal entity. ( )3. Many countries adopt the incorporation criterion to decide the source of business income.4.Every tax treaty may involve two or more contracting states.( )5.Tax sparing policy may benenfit more developing countries than developed countries. ( )Please explain the following key terms. (12 marks,3 marks for each key term )1. profit-split method 2. tax sparing3. International double taxation 4. Advance pricing agreement. Questions ( 28 marks )1. Please explain what methods may be used by resident country to eliminate the international double taxation caused by the conflicts between the residence jurisdiction and source jurisdiction. Compare these methods and explain further which method are the best method .(8 marks)2. Please explain the difference between the direct crdit and indirect credit. (4 marks) 3. Please explain what methods may be used by multinational individual taxpayers to have a international tax avoidance.(6 marks) 4. What factors may cause the international tax avoidance?(3marks)5. What charactors may tax heaven countries have? (7 marks). Case Study ( 20 marks )一 A Dutch limited company provided oil to two locations in Germany through underground pipes laid between two countries. All the pipes were owned by the Dutch company, and the oil transportation was controlled remotely by the computer in Netherlands. The company didnt send personnel to Germany, and all the technology and marketing staff were in Netherlands. The pipes laid in Germany were maintained and repaired by some independent contractor. Think about that whether the pipes can be regarded as PE? Why?二 A Japanese individual resident was employed in Beijing Taihua Company from March 1 2002 to Oct. 1 2002. He got dependent service income since he provided technology services to the above company. Question: In which cases the Beijing tax bureau could levy income tax on this person?V. Computation ( 30 marks)一 There is a resident company E situated in State A. Its gross income is $200,000, including $120,000 earned from State A, and $80,000 from State B in some taxable year. E pays a foreign income tax of $32,000 (the income tax rate in State B is 40% and its income tax rate in State A is 45%).calculate seperately how much income tax E shoule pay without any relief methods and with deduction method. 二 There is a resident company F situated in State A. Its gross income is $200,000, including $120,000 earned from State A, and $80,000 from State B in some taxable year. F pays a foreign income tax of $32,000 (the income tax rate in State B is 40%). As income tax rate is 45%, but it provides 10% income tax for its residents foreign-source income. calculate seperately how much income tax E shoule pay without any relief methods and with low-tax-rate method. 答案及评分标准 I.True and False ( 10marks, 2points/each): Please explain the following key terms. (12 marks,3 marks for each key term )1. profit split method: a method for the allocation of the worldwide profits of a multinational enterprise among its corporate members in proportion to their contributions to the earning fo the profits.2. Tax sparing : the allowance of a credit for the amount od foureign taxes that were not paid because of a tax incentive or holiday in the foreign country.3. International double taxation has been defined as the imposition of comparable income (property) taxes by two or more sovereign countries on the same item of income (including capital gains or property value) of the same taxable person for the same taxable period. 4. APA: an agreement between a multinational enterprise and the tax authourities of nome or more contries approving the transfer pricing method to be used by the enterprise in future tax years. Questions ( 28 marks )1. deduction method ,low-tax rate method.exemption mehod ,credit method(4 marks)2. Unlimited tax liability means a tax payer need to pay its tax to government on his worldwide income, including domestic-source income and foreign-source income. (3marks)3. branch: not a independent legal entity without Capital tax,Income tax on interest or stock,and resident country usually adopt exemption method to eliminate double taxation . (3marks)Subsidiary: a independent legal entity with Capital tax,Income tax on interest or stock,and resident country usually adopt crdit method to eliminate double taxation. (3marks)4. (6 marks)5.ALP is set according to the market economy theory and its price is the real market price, which reflects the principle of equity(1 mark).It often imposes unreasonable burdens of proof on taxpayers(1 mark).It is extremely time-consuming and expensive to enforces(1 mark). ALP is likely to continue to be the internationally accepted and the most objective approach for resolving transfer pricing issues except in special circumstances(1 mark).FA is more easily to enforces and it also avoids some of the difficult audit problems.The arbitrariness of the predetermined formulas makes it difficult to reflect the particular circumstances of each multinational enterprises(1 mark).It relies heavily on access to foreign-based information.Substantial cooperation among governments would be needed to solve these problems(1 mark).FA is used by some subnational jurisdictions(1 mark). And it is likely to continue to be an important part of the international tax scene(1 mark). . Case Study ( 20 marks )一 . The Germany IRD (Inland Revenue Department) treated that the pipes located in Germany was some kind of Permanent Establishment, and determined to levy on the Dutch company.二（1）If the income was paid by Beijing company, and the company was a Chinese resident.（2）If the income was borne by a PE set by the Japanese company(3) If the income was borne by the Japanese company but that person stayed in China exceeding 183 days . Computation (30 marks)一 . (1) Income Tax paid by E without any relief methods Foreign Tax paid by E（8000040%） 32,000Income tax levied by A withou