Question

Abusive tax schemes have evolved from simple structuring of abusive domestic and foreign trust arrangements into sophisticated strategies that take advantage of the financial secrecy laws of some foreign jurisdictions and the availability of credit/debit cards issued from offshore financial institutions. Generally, these schemes are characterized by the use of all of the following flow-through entities except:

A. International Business Companies

B. Foreign Trusts

C. Qualified Intermediaries

D. Foreign Partnerships

Answer 1

Answer:-

The correct Option  is Choice C. Qualified Intermediaries
All the other choices A,B and D are characterized by Abusive tax schemes.

The Abusive Tax Schemes program includes the violations of the Internal Revenue Code (IRC) and related entities where multiple flow entities are used as an integral part of the taxpayer's scheme leading to tax evasion.

Abusive trust schemes are characterized by the use of all of the follow like domestic and foreign trusts, partnerships, nominees like International Business companies except Qualified Intermediaries,