While German tax computations are based on financial accounting standards, this is not true in the United Kingdom. Why doesn’t the U.K. base its tax code on financial accounting standards?
A. The United Kingdom tries to avoid being like Germany whenever it can.
B. The United Kingdom had a tax code long before it had financial accounting standards.
C. Financial accounting standards in the United Kingdom are too conservative to be practical for tax purposes.
D. Germany follows the directives of the European Union, whereas the United Kingdom has not adopted the directives of the EU.
Answer:B
While German tax computations are based on financial accounting standards, this is not true in the United Kingdom. Why doesn’t the U.K. base its tax code on financial accounting standards?
A. The United Kingdom tries to avoid being like Germany whenever it can. B. The United Kingdom had a tax code long before it had financial accounting standards. C. Financial accounting standards in the United Kingdom are too conservative to be practical for tax purposes. D. Germany follows the directives of the European Union, whereas the United Kingdom has not adopted the directives of the EU.