CIMA Exam CIMAPRA19-F01-1 Topic 3 Question 57 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam

Question #: 57
Topic #: 3

XY is an entity incorporated in Country B but operates in several countries. Monthly management meetings to decide on strategic matters take place in Country A, where the majority of its production happens. XY sells most of its goods to Country C.

In accordance with the Organization for Economic Co-operation and Development (OECD) rules on corporate residence which of the following statements is true?

AXY is resident in Country B because this is the country of its incorporation.

BXY is resident in Country C because this is the country where XY generates most of its revenue.

CXY is resident in Country A because this is the country of its effective management.

DXY is resident in Country A because this is the country where XY undertakes most of its production.

Show Suggested Answer

Suggested Answer: C

by Peggie at Aug 20, 2022, 09:06 PM

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