In Addition to Having Very Low Effective Tax Rates, Which

question 20

Multiple Choice

In addition to having very low effective tax rates, which of the following is also a characteristic of tax havens?

• A)Lack of transparency in financial reporting
• B)Lack of effective exchange of information
• C)Absence of substantial activities requirement
• D)All of the above

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Definitions:

External Auditors

Independent accounting professionals who examine the financial records and business transactions of a company to ensure the accuracy and integrity of its financial statements.

Control Activity

Actions, policies, and procedures implemented by an entity to minimize risks and achieve its objectives.

Cash Drawer

A small drawer in a cash register or point of sale system used for storing cash and other payment media during business operations.

Authorized Signing Officer

is an individual granted the authority by an organization to sign official documents on behalf of the company.