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CIMAPRA19-F01-1 Exam - Topic 2 Question 25 Discussion

Country X levies corporate income tax at a rate of 25% and charges income tax on all profits irrespective of whether they are distributed by way of dividend. Country Y levies corporate income tax at a rate of 20%.A, who is resident in Country X, pays a divided to B, who is resident in Country Y. B is required to pay corporate income tax on the dividend received from A, but a deduction can be made for the tax suffered on this dividend restricted to a rate of 20%.Which method of relief for foreign tax does this describe?
C) Tax credit
A) Exemption
B) Deduction
D) Restricted

CIMAPRA19-F01-1 Exam - Topic 2 Question 25 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam
Question #: 25
Topic #: 2
[All CIMAPRA19-F01-1 Questions]

Country X levies corporate income tax at a rate of 25% and charges income tax on all profits irrespective of whether they are distributed by way of dividend. Country Y levies corporate income tax at a rate of 20%.

A, who is resident in Country X, pays a divided to B, who is resident in Country Y. B is required to pay corporate income tax on the dividend received from A, but a deduction can be made for the tax suffered on this dividend restricted to a rate of 20%.

Which method of relief for foreign tax does this describe?

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Suggested Answer: C

by Bette at May 05, 2022, 05:23 AM

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Barney
10 months ago
Nope, it's not a credit, just a deduction for the excess tax.
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Anglea
10 months ago
I thought tax credits were more common in these cases?
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Quinn
11 months ago
Wait, so B is taxed twice? That seems unfair!
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Mammie
11 months ago
I agree, it's all about that 20% limit.
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Buddy
11 months ago
This is definitely a deduction scenario.
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Corrie
11 months ago
I'm a bit unsure about this one. The wording is a bit ambiguous, and I'm not totally clear on the best practices for evidence collection in these types of cases.
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Marguerita
11 months ago
Ugh, I'm drawing a blank on this. KPIs, dashboards, and scorecards - they're all starting to blend together. I'll have to make an educated guess on this one.
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Twana
11 months ago
Okay, let's think this through. The key is to identify which option specifically describes the purpose of change enablement, rather than other IT practices. I've got a strategy in mind.
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Gianna
11 months ago
I'm a bit confused by this question. Is the answer supposed to be one of the options provided, or can it be something else? I want to make sure I understand the question fully before answering.
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Alesia
11 months ago
This seems pretty straightforward. I'll just use the `kubectl cordon` and `kubectl drain` commands like John mentioned. As long as I get the node name right, I should be able to handle this question without any issues.
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