1. Tax practitioners need to expand their local service to clients to include:
a. income Tax.
b. state and local tax.
c. multijurisdictional taxation.
d. tax planning
2. Generally, local governments are authorized to impose taxes by the:
a. state statutory or constitutional provisions.
b. State Governor.
c. the President of the U. S.
d. Chairman of the U. S. Treasury.
3. 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.
4. When deciding where to locate new plants or headquarters, businesses must consider the level of:
a. revenues.
b. expenses.
c. diversions.
d. state and local taxation.
5. In today’s expanding tax planning and compliance, Tax practitioners need to service their clients by adding to federal
tax planning:
a. tax analysis.
b. investment planning.
c. state and local tax planning.
d. Estate planning.
6. The federal clause most frequently providing the basis for state taxation disputes related to the states’ power to tax
out–of–state individuals and entities is the:
a. Supremacy Clause.
b. Federal Clause.
c. Commerce and Due Process Clause.
d. Legal Perspective Clause.
7. 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.
8. The clause which goal is to create 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.
9. 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.
10. 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.
11. The state entity responsible for enacting laws regarding state revenue sources and consequently pass 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.
12. Once tax statutes are enacted, they must be interpreted and enforced.These duties usually fall to entities created by
either statutory or constitutional provisions. These entities are called:
a. State Legislatures.
b. Constitutional Statutes.
c. Judicial Systems.
d. Administrative Agencies.
13. 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.
14. Companies conducting business in more than one state are subject to multistate taxation.In order to create 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. Multi-State Accord.
15. 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.
16. The backbone of the CCH IntelliConnect State service combines detailed explanations, primary source materials,
and practical compliance guidance. CCH calls it:
a. State TOC.
b. Search States.
c. State Tax Reporters.
d. State Tax Unlimited.
17. The Bloomberg BNA service makes finding state tax information easy to find by the use of:
a. Citators.
b. Keywords.
c. State Tax Portfolios.
d. State Topical Indexes.
18. The tax service which provides state-by-state access to all the state-level tax laws and regulations and a host of
analysis and other editorial materials as well is called:
a. IntelliConnect State.
b. Bloomberg BNA State.
c. Checkpoint SALT.
d. Lexis Tax Center.
19. The Tax Service which offers state data through two search engines Search and Sources is called:
a. LexisNexis Academic.
b. Lexis Tax Center.
c. Checkpoint SALT.
d. WestlawNext State Service.
20. The Tax Service which 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. WestlawNext Campus.
d. Checkpoint SALT.
21. The State Taxation treatise is published by:
a. Bloomberg BNA.
b. WG&L.
c. CCH.
d. Westlaw.
22. From an economic perspective, the objective of the international tax rules of each country should be to:
a. prevent other coutries from copying it.
b. ease taxing system interactivity.
c. shelter profits.
d. discourage investments.
23. The conceptual model where a country imposes taxes on tax residents based on their worldwide income, regardless
of its source is called:
a. territorial model.
b. International model.
c. worldwide model.
d. continental model.
24. The OECD is an organization known for its:
a. belief in democratic governments and market economies.
b. support of tax havens.
c. publication of economic and social data and statistics.
d. only (a) and (c).
25. Foreign taxpayers (also known as nonresident aliens) generally are subject to federal taxes only on:
a. average wages after taxes.
b. the tax wedge.
c. U.S. source income.
d. all income.
26. Tax treaties can prevent double taxation by:
a. providing reduced tax rates and reduced withholding.
b. exempting certain types of income from taxation.
c. including a “savings clause.”
d. all of the above.
e. only (a) and (b).
27. 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.
28. 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. Tax Management Portfolios
29. The CCH International Tax Service includes the following:
a. Worldwide Tax Rates and Answers.
b. International Tax Planning Library.
c. International Transfer Pricing.
d. International Tax Treaty Expert Library.
e. all of the above.
30. CCH IntelliConnect offers numerous international tax products including the Global Daily News and:
a. WG&L Treatises.
b. BNA International Publications.
c. International Tax System.
d. Law of Federal Taxation.
31. U.S. treaties can be accessed quickly in the BNA International Portfolio under which heading?
a. Country Portfolios.
b. Global Tax Guide.
c. Tax Treaties.
d. International Tax Monitor.
32. Westlaw‘s two portals to international taxation material portals are limited to:
a. Foreign Companies only.
b. All academic institutions.
c. Only law schools.
d. Free materials.
33. 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 above statements accurately describe LexisNexis international tax services.
34. The Internet site www.taxsites.com which contains links to numerous tax resources is called the:
a. E-mail Highlights.
b. Tax and Accounting Sites Directory.
c. Cyberspace Tax Research.
d. Complete Internet Tax Research.
35. A transaction country is a country where the taxpayer resides or an entity is located.
a. True
b. False
36. The ultimate goal of a corporate tax director in international tax planning is to reduce the company’s overall global
effective tax rate.
a. True
b. False
37. In practice, most of the countries in the world use a pure worldwide model of taxation.
a. True
b. False
a. True
b. False
38. With a territorial model of taxation, a foreign tax credit is needed to ensure that the income is not taxed twice.
a. True
b. False
39. The U.S. blended model encourages U.S. domestic corporations to retain earnings in foreign countries and postpone
repatriation as long as possible.
a. True
b. False
40. The transfer pricing rules target multinational companies that use the price-setting process in intercompany
transactions to report low taxable income in high-tax countries and high taxable income in the low-tax countries.
a. True
b. False
41. Generally, inventory sales are sourced by the location of the seller.
a. True
b. False
42. A native country’s taxation of its citizens’ foreign–source income involves inbound transactions.
a. True
b. False
43. A “Saving clause” in U.S. treaties prevent U.S. residents from using treaty provisions to avoid taxes on U.S. source
a. True
b. False
44. U.S. tax law uses a territorial approach for taxing non-U.S. taxpayers.
a. True
b. False
45. BNA offers Country Portfolios covering the taxation of business operations in specific countries.
a. True
b. False
46. Tax Notes International, published by the Tax Analysts, is a daily publication.
a. True
b. False
47. Originally, the International Bureau of Fiscal Documentation (IBFD) was simply a document repository, but now it
provides expert research products.
a. True
b. False
48. Westlaw offers the business primers, “Doing Business in…” for a variety of countries that provide an overview of
different countries’ tax environments.
a. True
b. False
49. The Create-a-Chart, a special feature of Thomson Reuters Checkpoint, develops personalized charts of pertinent
50. Westlaw offers one portal to international taxation materials, through the standard service, Westlaw Taxation.
a. True
b. False
51. U.S.-adopted tax treaties usually do not address state and local tax issues.
a. True
b. False
52. The newsletter, International Taxes Weekly, is published by Westlaw.
a. True
b. False
53. CCH IntelliConnect offers the International Tax Planning Library.
a. True
b. False
54. Worldwide Tax Rates and Answers, a service of CCH IntelliConnect, provides corporate tax rates by country,
including national and local tax rates, as well as current forms and instructions for countries around the world.
a. True
b. False
55. Why are taxpayers emphasizing multijurisdictional tax planning?
56. 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.
57. Briefly explain the U.S. blended model of international taxation and the purpose of the foreign tax credit.
58. “The Code provisions always take precedence over treaty provisions.” Comment.
59. What is the International Bureau of Fiscal Documentation, and what is its mission?
60. Discuss in brief about some of the most useful resources offered within the CCH International Tax Service.