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Border Adjustment Tax
Consider the following statements with reference to the Border Adjustment Tax (BAT):
- Border adjustment tax is a value-added tax on imported goods and is also referred to as a border-adjusted tax, destination tax or border tax adjustment.
- BAT levies a tax depending on where a good is consumed rather than where it is produced.
Choose the correct answer from the codes given below:
A |
Only 1
|
|
B |
Both 1 and 2
|
|
C |
Only 2
|
|
D |
Neither 1 nor 2
|
Your Ans is
Right ans is B
Your Answer Is Correct
Your Answer Is Wrong
Explanation :
- Border adjustment tax is a short name for a proposed destination-based cash flow tax (DBCFT).
- It is a value-added tax on imported goods and is also referred to as a border-adjusted tax, destination tax or border tax adjustment.
- The border adjustment tax (BAT) levies a tax depending on where a good is consumed rather than where it is produced.
- It is a fiscal measure that imposes a charge on goods or services in accordance with the destination principle of taxation.
- BAT seeks to promote “equal conditions of competition” for foreign and domestic companies supplying products or services within a taxing jurisdiction.
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