Tax Havens

1) Which of the following characteristics is/are been shared by the various tax havens in the world?

a) Minimal disclosure requirements.
b) Possibility to hide beneficial ownership.
c) Low or no effective taxation on income and wealth.
d) All of the above

2) Which of the following countries is not considered a tax haven ?

a) South Korea
b) Mauritius
c) Bahrain
d) Panama

3) Which of the following islands is not considered a tax haven ?

a) The Channel Island.
b) The Baffin Island.
c) The British Virgin Islands.
d) The Cayman Island.

4) Why the Panama is considered a tax haven?

a) Territorial system of taxation.
b) A company can be set up in 2 days.
c) Poor oversight by the official central bank.
d) Lack of exchange controls.

Answers:

1) d
2) a
3) b
4) c, there is no official central bank in Panama.

Reference : The Hindu Newspaper

Panama Papers : Part - 1

1) Panama papers are related to which of the following options:

a) Tax Evasion.
b) Free Trade Agreement.
c) Defence Partnership.
d) Human Rights Issue.

2) The leaked documents belong to a law firm headquartered in Panama. The name of this law firm is:

a) Charlie Hebdo
b) Mossack Fonseca
c) Suddeutsche Zeitung
d) None of the above

3) The team set up by Government of India to probe the leak does not consists of which of the following organizations?

a) CBDT and FIU
b) RBI
c) Foreign Tax and Tax Research Division
d) CBI

4) Under the Liberalized Remittance Scheme, how much amount is allowed by RBI to freely remit overseas for any permissible current or capital account transactions?

a) $100000
b) $50000
c) $250000
d) $75,000

Answers:

1) a
2) b
3) d
4) c