Double tax treaties exist primarily to:
AIncrease tax on foreign income
BEliminate double taxation of the same income in two jurisdictionsCORRECT
CReplace VAT
DMandate dividends
ACCATaxation
AI
Toaster Teacher
Why the answer is B, and why the others tempt you.
DTTs allocate taxing rights between jurisdictions and provide relief (credit/exemption) to avoid double taxation.
Want this in Pidgin, Yoruba, Igbo or Hausa? Sign up free →
Practice more Taxation questions
ACCA Taxation has thousands more questions like this — with Worked answers on every one.