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Unformatted text preview: Chapter 20 - Taxes 22:00 Taxes are to make money (revenue generators) Neutrality create a system so tax system doesnt cause people to do unusual things in terms of investments or financial decisions Types of Taxation Income Value Added Tax (VAT) Consumption tax Withholding tax Worldwide Taxation Minicase Sigmacorp Spain and Cypress Cypress o Advantage: Delay and not pay taxes until sent home Can time and delay tax payments (as long as you want, but have to pay it in full) o If you have a holy owned subsidiary in cypress you have a problem. theres a withholding tax incentive not a real problem though cause you can delay payment of tax o dont care whether or not you have a parent or subsidiary, same tax rate and you can delay them Spain o If subsidiary, theres a withholding tax on top of that for profits sent out of...
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This note was uploaded on 04/12/2010 for the course MGT 3460 taught by Professor Ebenezerasem during the Spring '10 term at University of Lethbridge.
- Spring '10