Basics

Question 1

Laffer Curve

Answer 1

Arithmetic and economic effects on tax revenues

Question 2

tax company
shareholder dividend
employee salary
customer VAT GST

Answer 2

Not only accountable to shareholders but also to the government
Avoid artificially inflated profits

Question 3

Capital Income

Tree Fruit

Answer 3

Capital gains tax Income tax

Question 4

Consumption tax

1. Board based
2. Narrow based

Answer 4

1. Value added tax
   General Sales Tax
2. Vice tax

Question 5

tax incentives
R&D
patent box (special low rate of Corporate Tax)

Answer 5

encourage certain behaviour through tax break, tax holiday or special tax treatment

Question 6

Source of income, gains, profits
Residence of recipient of the above source

Individual residence, time spent and personal ties
(statutory residence tests)
Company residence, place of incorporation or central management and control

Answer 6

primary right to tax income that has its source in that country
business income
employment income
investment income
capital gains?

Question 7

Two tier boards, supervisory and management

Answer 7

control is considered to be in the management board

Question 8

E-commerce

Answer 8

No or little physical presence

easy to change location