{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

0240 B415F Profits tax-non-resident answers

0240 B415F Profits tax-non-resident answers - B415F Profits...

Info icon This preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
B415F Profits tax -Non-residents 11
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Exercise n The Newton Corporation is an international company carrying on a business providing logistics services. The aim of Newton Corporation and its subsidiaries (“the Newton Group”) is to offer flexible logistics solutions to their customers. 22
Image of page 2
Exercise The Newton Group is planning to set up a company (“XCo”) in Cyprus or Malta and hereinafter transfer the group's trade-marks to this company. The transfer of trademarks will be made at fair market value. XCo will receive royalty payments from its subsidiaries in various countries, including Hong Kong, where the Newton Group has business activities (Assume that the transfer is at arm's length and for commercial reasons). 33
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Exercise n The royalty rate will be approximately 0.5% on the turnover (assume this is on arm's length basis and in line with the Newton Group's transfer pricing policy). n Required: n (a) Outline the relevant tax rules and explain whether the royalty payments received by XCo from the Hong Kong subsidiary will be liable to tax in Hong Kong? (Assume year of assessment to be 2006/07) 44
Image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern