Deck 9: Multijurisdictional Taxes

Question 1

Most states in the United States use which type of judicial system?

A)only superior courts
B)one-tier judicial system
C)two-tier judicial system
D)three-tier judicial system

Answer 1

D

Question 2

The Tax Service that offers an extensive library of databases for state tax research reached through its State Materials tab is called:

A)LexisNexis Academic
B)Bloomberg BNA
C)Westlaw Campus
D)Checkpoint SALT

Answer 2

C

Question 3

Generally, local governments are authorized toimpose taxes by the:

A)state statutory or constitutional provisions
B)state Governor
C)President of the United States
D)Chairman of the U. S. Treasury

Answer 3

A

Question 4

The federal clause most frequently providing the basis for state taxation disputes related tothe states' power totax out-of-state individuals and entities is the:

A)Supremacy Clause
B)Federal Clause
C)Commerce and Due Process Clause
D)Legal Perspective Clause

Question 5

The law that prevents the income taxation of interstate commerce if a company's only business within the state is the solicitation of orders for sales of tangible personal property is called the:

A)Interstate Commerce Law
B)Interstate Income Law
C)Legal Perspective Law
D)Public Law 86-272

Question 6

Generally, state constitutions limit the rates and types of taxes that can be imposed, and they require that tax laws show uniformity, provide equal protection, and have a:

A)good background
B)profitable end
C)public purpose
D)referendum

Question 7

Tax practitioners need toexpand their local service toclients toinclude:

A)income tax
B)state and local tax
C)multijurisdictional taxation
D)tax planning

Question 8

Companies conducting business in more than one state are subject tomultistate taxation. In order tocreate uniformity and consistency in the measurement and determination of business and nonbusiness income, the following legislation was drafted:

A)Uniform Division of Income for Tax Purposes
B)Multilateral Income Agreement
C)Income Treaty
D)Multistate Accord

Question 9

The Bloomberg BNA service makes finding state tax information easy by the use of:

A)a keyword search by state or states
B)the GoToStates search
C)selecting a portfolioand then a state
D)all of these are correct

Question 10

Which of the following clauses of the federal Constitution immunizes the federal government from taxation by the states?

A)Due Process Clause
B)Commerce Clause
C)Supremacy Clause
D)Equal Protection Clause

Question 11

The clause with a goal tocreate a national economy unencumbered by discriminatory, arbitrary jurisdictional standards of the states is called the:

A)Supremacy Clause
B)Due Process Clause
C)Commerce Clause
D)Equal Protection Clause

Question 12

In today's expanding tax planning and compliance, tax practitioners need toservice their clients by adding tofederal tax planning:

A)tax analysis
B)investment planning
C)state and local tax planning
D)estate planning

Question 13

Once tax statutes are enacted, they must be interpreted and enforced. These duties usually fall toentities created by either statutory or constitutional provisions. These entities are called:

A)state legislatures
B)constitutional statutes
C)judicial systems
D)administrative agencies

Question 14

The easiest way tofind specific state tax information in Nexis Uni is:

A)using Narrow By Jurisdiction and a keyword search
B)browsing the state tax reporters
C)Nexis Uni does not have state tax information
D)none of these are correct

Question 15

The state entity responsible for enacting laws regarding state revenue sources and consequently passing bills amending and augmenting their state's taxing code is called the:

A)judicial agency
B)administrative body
C)state legislature
D)state tax commission

Question 16

Thomson Reuters Checkpoint State and Local Tax (SALT)service is a comprehensive analysis of:

A)state imports and exports
B)state and local taxes
C)state and local tax issues
D)international tax issues

Question 17

The tax service that provides state-by-state access toall the state-level tax laws and regulations as well as a host of analysis and other editorial materials is called:

A)IntelliConnect State
B)Bloomberg BNA State
C)Checkpoint SALT
D)Lexis Advance Tax

Question 18

The backbone of the CCH AnswerConnect State service combines detailed explanations, primary source materials, and practical compliance guidance. CCH calls it:

A)the all states database
B)search states
C)state tax reporters
D)state tax unlimited

Question 19

Which federal Constitutional clause limits the territorial scope of a state's taxing authority?

A)Supremacy Clause
B)Commerce Clause
C)Equal Protection Clause
D)Due Process Clause

Question 20

When deciding where tolocate new plants or headquarters, businesses must consider the level of:

A)revenues
B)expenses
C)diversions
D)state and local taxation

Question 21

The Checkpoint tax product which provides a comprehensive set of analytical treaties and texts is named:

A)RIA International Taxes Weekly
B)Tax Management Portfolios
C)RIA International Tax Library (ITL)
D)Worldwide Tax Treaties

Question 22

Which of the following statements describes the international tax services offered by LexisNexis?

A)LexisNexis contains a Westlaw International Tab.
B)Only primary sources are available.
C)LexisNexis contains international publications by BNA, CCH, Wiley, and Tax Analysts.
D)All of the these statements accurately describe LexisNexis international tax services.

Question 23

The OECD is an organization known for its:

A)belief in democratic governments and market economies
B)role in helping toobtain multilateral economic agreements for countries
C)publication of economic and social data and statistics
D)all of these are correct

Question 24

The details of the tax law for a specific country can be found in CCH AnswerConnect by:

A)jurisdiction
B)topic
C)jurisdiction or topic
D)AnswerConnect only provides US-based tax law.

Question 25

In practice, most of the countries in the world donot use a pure worldwide model of taxation.

Question 26

With a territorial model of taxation, a foreign tax credit is needed toensure that the income is not taxed twice.

Question 27

The Internet site www.taxsites.com which contains links tonumerous tax resources is called the:

A)E-mail Highlights
B)Tax and Accounting Sites Directory
C)Cyberspace Tax Research
D)Complete Internet Tax Research

Question 28

Tax treaties can prevent double taxation by:

A)providing reduced tax rates and reduced withholding
B)not allowing the exemption of certain types of income from taxation
C)including a "savings clause"
D)all of these are correct

Question 29

Foreign taxpayers (alsoknown as nonresident aliens)generally are subject tofederal taxes only on:

A)average wages after taxes
B)the tax wedge
C)U.S. source income
D)all income

Question 30

A transaction country is a country where the taxpayer resides or an entity is located.

Question 31

U.S. treaties can be accessed quickly in the BNA International Portfoliounder which heading?

A)Country Portfolios
B)Global Tax Guide
C)Tax Treaties
D)International Tax Monitor

Question 32

The transfer pricing rules target multinational companies that use the price-setting process in intercompany transactions toreport low taxable income in high-tax countries and high taxable income in low-tax countries.

Question 33

The ultimate goal of a corporate tax director in international tax planning is toreduce the company's overall global effective tax rate.

Question 34

The CCH AnswerConnect International Practice Area Service includes the following:

A)Worldwide Tax Rates and Answers
B)Permanent Establishment Smart Chart
C)International Tax Topics by country
D)International Tax Treaties
E)all of these are correct.

Question 35

Bloomberg BNA's Premier International Tax Library includes:

A)an international create-a-chart feature
B)CCH's Tax Treaties Reporter
C)Tax Notes International
D)Foreign Income Portfolios

Question 36

Generally, inventory sales are sourced by the location of the transaction.

Question 37

The U.S. has a modified territorial system of taxation wherein the earnings of a controlled foreign corporation are subject toimmediate taxation in the U.S.

Question 38

From an economic perspective, the objective of the international tax rules of each country should be to:

A)prevent other countries from copying it
B)ease taxing system interactivity
C)shelter profits
D)discourage investments

Question 39

The State Taxation treatise is published by:

A)Bloomberg BNA
B)WG&L
C)CCH
D)Westlaw

Question 40

Which of the following is not a broad earnings categorization for a controlled foreign corporation?

A)Subpart F income
B)certain tax-exempt income
C)GILTI
D)transfer pricing

Question 41

What is the International Bureau of Fiscal Documentation, and what is its mission?

Question 42

Checkpoint offers the unique RIA International Create-A-Chart function that facilitates the creation of tax-comparison charts with links tocontrolling authority, detailed explanations, and analysis by WG&L treatises.

Question 43

How is the source of income determined for the purpose of taxation? Briefly identify the sourcing rules for the following types of income: dividends, services, sales of inventory and income from property.

Question 44

A "saving clause" in U.S. treaties prevents U.S. residents from using treaty provisions toavoid taxes on U.S. source income.

Question 45

BNA offers Country Portfolios covering the taxation of business operations in specific countries.

Question 46

Lexis Advance Tax offers the business primers "Doing Business in…" for a variety of countries, which provide an overview of different countries' tax environments.

Question 47

Originally, the International Bureau of Fiscal Documentation (IBFD)was simply a document repository, but now it provides expert research products.

Question 48

U.S.-adopted tax treaties usually donot address state and local tax issues.

Question 49

U.S. tax law uses a territorial approach for taxing non-U.S. taxpayers.

Question 50

CCH AnswerConnect offers Tax Notes International.

Question 51

A native country's taxation of its citizens' foreign-source income involves inbound transactions.

Question 52

"The Code provisions always take precedence over treaty provisions." Comment.

Question 53

Why are taxpayers emphasizing multijurisdictional tax planning?

Question 54

Briefly explain the U.S. model for international taxation of controlled foreign corporations.

Question 55

Tax Notes International, published by the Tax Analysts, is a weekly publication.