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CIMA Discussions
CIMAPRA19-F01-1 Exam - Topic 5 Question 58 Discussion
CIMAPRA19-F01-1 Exam - Topic 5 Question 58 Discussion
Actual exam question for CIMA's CIMAPRA19-F01-1 exam
Question #: 58
Topic #: 5
[All CIMAPRA19-F01-1 Questions]
What does the deduction method of giving double taxation relief mean?
A
Tax relief is gained by adding the foreign tax from the foreign income so that the gross amount will be subject to tax in the country of residency.
B
Tax paid in one country may be allowed as a tax deduction another country. Relief is normally restricted to the lower of the foreign or country of residency tax.
C
Tax relief is gained by deducting the foreign tax from the foreign income so that only the 'net' amount will be subject to tax in the country of residency.
D
Tax paid in one country may be allowed as a tax credit in another country. Relief is normally restricted to the higher of the foreign or country of residency tax.
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Suggested Answer:
C
by
Chanel
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Sep 17, 2022, 12:31 PM
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Noah
4 months ago
Isn't it weird that relief is capped at the lower tax? Sounds unfair!
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Barney
4 months ago
Nah, I disagree with that. It’s more complicated than just deducting.
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Jaime
4 months ago
Wait, so you can deduct foreign taxes? That's kinda cool!
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France
4 months ago
I thought it was option C? Seems like a common mistake.
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Raymon
4 months ago
Option B is correct! That's how it works.
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Jaime
5 months ago
If I recall correctly, the deduction method is about reducing your taxable income, so I lean towards option C, but I need to double-check that.
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Abel
5 months ago
I'm a bit confused about the difference between a deduction and a credit. I feel like I might mix them up in the exam.
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Josphine
5 months ago
I remember practicing a question similar to this, and I think option C sounds right because it talks about the 'net' amount being taxed.
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Sueann
5 months ago
I think the deduction method means you subtract the foreign tax from your income, but I'm not entirely sure if that's how it works.
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Viva
5 months ago
Hmm, I'm a bit unsure about this one. I know the transfer of training is affected by factors like reinforcement and fear of change, but I'm not sure which one of these wouldn't impact it. I'll have to think this through carefully.
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Frank
5 months ago
I guess it could be "functions," but that feels off, right? I thought metadata was more about organizing with tags.
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Ailene
5 months ago
It seems like "appliance" could be relevant too, but it really depends on what functionalities we need for the network.
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Noah
4 months agoBarney
4 months agoJaime
4 months agoFrance
4 months agoRaymon
4 months agoJaime
5 months agoAbel
5 months agoJosphine
5 months agoSueann
5 months agoViva
5 months agoFrank
5 months agoAilene
5 months ago