1
For which tax(es) there is typically no obligation on the taxpayer to file a tax return?
- T Wage Tax
- handled via tax withholding, other via tax return
- F Transactional taxes
- F VAT
2
Which statement(s) is/are true with regard to tax audits and compliance control procedures?
- F The tax authorities must audit every tax return in order to properly control its accuracy
- auditing every tax return would be infeasible, not enough (human) resources
- largest tax payers audited (large companies) regularly
- smaller tax payers audited rarely or only automatized
- audits mostly happen across industries (e.g. all restaurants are checked in a certain year)
- T In more and more countries tax returns are processed automatically with the use of AI; the latter is also used for the selection of tax returns for tax audit
- Netherlands has been resignated due to discriminatory algorithms during tax auditing
- F Cooperative compliance designates the obligation of the taxpayer to cooperate with the tax authorities in the course of a tax audit to disclose all necessary data for the correct determination of the tax
- cooperative compliance … mutual trust between taxpayer and tax authority
- identifying tax risks with the authorities
- alternative to traditional tax audit
3
Which statement(s) is/are correct with regard to advance tax rulings?
- T The main advantage of advance tax rulings for the taxpayer is certainty
- rulings are binding, no way to change that afterwards
- F An advance tax rulings is binding on the tax authorities meaning that they cannot audit the transaction or structure subject to the ruling irrespective of how the circumstances of the taxpayer changed
- only if the circumstances remain the same the rulings are binding
- T A certain type of advance tax rulings is advance transfer pricing agreements
- very common under many tax laws
- F Advance tax rulings must be granted under all domestic laws with regard to any issue of the application of the tax laws to a individual transactions or structures because it is a fundamental right of the taxpayer
4
What is a tax amnesty?
- F The possibility to pay monetary fines/penalties on top of payment of a tax evaded in order to avoid imprisonment
- F Pardoning people convicted for tax-related crimes
- T Forgiveness of penalties and interest on unpaid taxes (or part of the unpaid tax) by legislature
5
Tax treaties do not contain provisions of a procedural nature, as they are international agreements the purpose of which is to allocate taxing rights between States to avoid double taxation
- F True
- T False
- tax treaties also has provisions (Article 25, 26, 27 (some)) of provisional naturetodo what is provisional nature?
6
What source(s) of primary EU law are relevant from the point of view of tax procedure?
- F The OECD Model Convention → OECD MC
- T General principles of EU law, such as the principles of equivalence and effectiveness
- F The directive on administrative assistance and the directive on assistance in tax collection
- T The Charter of Fundamental Rights of the European Union
- tax payers can expect to be protect during trials