CIMA-F1 practice - PrepKeys

Q4 Single choice

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?

A
XY is resident in Country B because this is the country of its incorporation.
B
XY is resident in Country C because this is the country where XY generates most of its revenue.
C
XY is resident in Country A because this is the country of its effective management.
D
XY is resident in Country A because this is the country where XY undertakes most of its production.