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Meaning of Control and Management or Place or Effective Management (POEM) Video Lecture | Income Tax for assessment (Inter Level) - Taxation

	Income Tax for assessment (Inter Level) 405 videos\|72 docs

Income Tax for assessment (Inter Level)

405 videos|72 docs

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FAQs on Meaning of Control and Management or Place or Effective Management (POEM) Video Lecture - Income Tax for assessment (Inter Level) - Taxation

1. What is the meaning of Control and Management or Place or Effective Management (POEM) Taxation?

Ans. Control and Management or Place or Effective Management (POEM) Taxation refers to the concept used in taxation laws to determine the tax residency of a company. It involves determining the place where the company's control and management is exercised, which determines its tax liability in that jurisdiction.

2. How is the tax residency of a company determined under POEM Taxation?

Ans. The tax residency of a company under POEM Taxation is determined by assessing the place where its control and management is actually exercised. Factors such as board meetings, decision-making processes, strategic and operational control, and key management personnel's presence are taken into consideration to determine the tax residency.

3. Why is POEM Taxation important in international taxation?

Ans. POEM Taxation is important in international taxation as it helps to prevent tax avoidance and ensure that companies pay taxes in the jurisdictions where their economic activities are primarily conducted. It helps to allocate taxing rights between countries and avoid situations where companies artificially shift their profits to low-tax jurisdictions.

4. What are the implications of being considered a tax resident under POEM Taxation?

Ans. Being considered a tax resident under POEM Taxation means that the company will be subject to taxation in the jurisdiction where its control and management is exercised. It will be required to comply with the tax laws and regulations of that jurisdiction, including filing tax returns, paying taxes, and maintaining proper documentation.

5. Are there any challenges in implementing POEM Taxation?

Ans. Yes, there are challenges in implementing POEM Taxation. One of the challenges is determining the place where control and management is exercised, especially in cases where decision-making processes are spread across multiple jurisdictions. Another challenge is the potential for double taxation if different countries have different interpretations of POEM Taxation rules. These challenges require clear guidelines and coordination among tax authorities to ensure fair and effective implementation of POEM Taxation.

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Nov 16, 2024 Last updated

Video Description: Meaning of Control and Management or Place or Effective Management (POEM) for Taxation 2024 is part of Income Tax for assessment (Inter Level) preparation. The notes and questions for Meaning of Control and Management or Place or Effective Management (POEM) have been prepared according to the Taxation exam syllabus. Information about Meaning of Control and Management or Place or Effective Management (POEM) covers all important topics for Taxation 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises and tests below for Meaning of Control and Management or Place or Effective Management (POEM).

Introduction of Meaning of Control and Management or Place or Effective Management (POEM) in English is available as part of our Income Tax for assessment (Inter Level) for Taxation & Meaning of Control and Management or Place or Effective Management (POEM) in Hindi for Income Tax for assessment (Inter Level) course. Download more important topics related with notes, lectures and mock test series for Taxation Exam by signing up for free.

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Video Lecture & Questions for Meaning of Control and Management or Place or Effective Management (POEM) Video Lecture | Income Tax for assessment (Inter Level) - Taxation - Taxation full syllabus preparation | Free video for Taxation exam to prepare for Income Tax for assessment (Inter Level).

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405 videos|72 docs

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