CA ANZ Advanced Tax (Australia) Practice Questions - CA Program Elective Advanced Tax (Australia) Exam - CA ANZ Advanced Tax (Australia) Practice Questions - CA Program Elective Advanced Tax (Australia) Exam

Question 1

Under the single entity rule that applies to an Australian income tax consolidated group, how is an intra-group transaction between two wholly owned subsidiary members treated for income tax purposes?

It is recognised at market value, generating an assessable gain to the seller It is disregarded because the subsidiaries are treated as parts of the head company It is taxed only if the asset is later sold outside the group within 12 months It generates a deductible loss to the buyer but no assessable income to the seller

Correct Answer:

It is disregarded because the subsidiaries are treated as parts of the head company

Question 2

What is the maximum net asset value threshold a taxpayer must not exceed (together with connected entities and affiliates) to satisfy the maximum net asset value test for the small business CGT concessions?

$$2 million $$6 million $$10 million $$50 million

Correct Answer:

$$6 million

Question 3

A private company makes a loan to a shareholder during the year and does not put it on a complying loan agreement before the lodgment day. What is the primary Division 7A consequence?

The loan is automatically forgiven and the company claims a deduction The shareholder is taken to receive an unfranked deemed dividend up to the company's distributable surplus The company must pay fringe benefits tax on the loan amount The loan is rolled over tax-free into the next income year

Correct Answer:

The shareholder is taken to receive an unfranked deemed dividend up to the company's distributable surplus

Question 4

What is the Division 7A benchmark interest rate that applies for the 2025-26 income year for setting the minimum interest on a complying loan?

4.52% 8.37% 8.77% 10.00%

Correct Answer:

8.37%

Question 5

Under Part IVA of the Income Tax Assessment Act 1936, what must the Commissioner conclude before cancelling a tax benefit obtained from a scheme?

That the scheme was illegal under the Corporations Act That a person entered the scheme for the dominant purpose of obtaining a tax benefit That the taxpayer failed to disclose the scheme in their return That the scheme produced an accounting loss

Correct Answer:

That a person entered the scheme for the dominant purpose of obtaining a tax benefit

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About this Exam

Prepare with the CA ANZ Advanced Tax (Australia) Practice Questions - CA Program Elective Advanced Tax (Australia) Exam practice quiz. This question bank includes 100 questions covering income, company, business, rate, and asset. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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CA ANZ Advanced Tax (Australia) Practice Questions - CA Program Elective Advanced Tax (Australia) Exam

This practice set contains 100 questions from the matching question bank and focuses on income, company, business, rate, and asset. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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CA ANZ Advanced Tax (Australia) Practice Questions - CA Program Elective Advanced Tax (Australia) Exam

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