Answered: Imports of $75,000 inclusive of…

Business

Accounting

Imports of $75,000 inclusive of Jmd$15,000 VAT

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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New America, Inc., a USA exporter of computer hardware intends to open a retail subsidiary in Kabul, Afghanistan sometime during tax year 2019. New America’s chief accountant has contacted our firm to inquire about income taxation for this planned business in Afghanistan and about the income tax obligations they might incur if they followed through with their plan. They also have asked to compare the Afghanistan tax rates and the rules governing ordinary and necessary business deductions to the respective US tax provisions. What would be the tax memorandum for this question.
New Life is a multinational distribution company that started operating a Branch in Barbados on 1 January 2023. The company’s Head Office is in the Cayman Islands and is part of a group which earns more than USD 850 million for the year. It employed some of its staff from Barbados and imports good and services from the US, Cayman Islands, and other Caribbean countries. New Life repatriation policy is to transfer 50 % to 70% of its after-tax profits to the Cayman Islands. The company was of the view that for the first year of operation there was a window of no tax obligations. In December 2023, the company realized that their understanding was not correct and therefore engaged UWI Tax Consulting Services Limited to provide tax advisory and tax compliance services. Your Group was assigned this engagement. Required.Advice New Life of the tax matters that needs to be considered when operating in Barbadosincluding any tax benefits or incentives they may consider.
Jitrah Sdn Bhd is a Malaysia tax resident company. Jitrah is registered under sales tax. Jitrah import taxable goods for RM450,000 from Brunei to use in its business on 5.04.2020. The import duty is 10% and sales tax is 10%. Jitrah issued an invoice for RM250,000 for the supply of healthy food (manufactured goods) to Big Sdn Bhd on 11.06.2020. Jitrah receive the full payment on 1.5.2020. The sales tax rate on healthy food is 5%. a. Calculate the sales tax payable by Jitrah Sdn Bhd for goods imported from Brunei. b. If Jitrah Sdn Bhd was not registered for sales tax purposes, discuss whether your answer to requirement (b)(i) would differ c. Calculate the - sales tax payable and - total invoice amount on the goods sold by Jitrah Sdn Bhd d.State the taxable period the sale by Jitrah Sdn Bhd should be accounted for, state the due date to remit the sales tax to RMCD.
11. Assume that your Saudi affiliate reports sales revenue of SR 272000. Translate this revenue figure to Omani Rial using the following spot rate. OMR 1 = SR 10
Al Kimyani Computer Hardware Company in Oman has made an order to receive RO 25000 worth of goods from Zakaria Exporters L.L.C. Dubai. A Bank Muscat has issued letter of credit to Zakaria Exporters L.L.C. on behalf of the bank customer Al Kimyani Computer Hardware Company. In this transaction Bank Muscat has: a. Providing a guarantee to exporter for confirmation of payment b. Providing a guarantee to middleman for confirmation of payment c. Providing a guarantee to importer for confirmation of payment d. Providing a guarantee to employees for confirmation of payment
2
Dianthus Ltd is a multinational company with headquarters in Queensland, Australia. It is, however, listed on both ASX (Australian Securities Exchange) and TWSE (Taiwan Stock Exchange). It manufactures and sells cardboard boxes worldwide. Most of its products are manufactured in Taiwan, where it obtains local materials and labour. Its sales are invoiced in Australian dollars. Some other information about the company is displayed below. Sales breakdown by geographical segments 2020 2019 Sales in Australia 2.1 billion AUD 2.2 billion AUD Sales in Taiwan 2.51 billion TWD 2.04 billion TWD Sales to the rest of the world 0.5 billion AUD 0.4 billion AUD Value of listings on securities / stock exchanges ASX TWSE Number of shares 1,000,000 2,000,000,000 Price per share 510 AUD 2.4 TWD The company issues all of its bonds to both retail and institutional investors in Australia, currently worth AUD 215 million in the market. In the tables above, AUD refers to Australian dollars, whereas TWD refers…
New America, Inc., a USA exporter of computer hardware intends to open a retail subsidiary in Kabul, Afghanistan sometime during tax year 2019. New America’s chief accountant has contacted our firm to inquire about income taxation for this planned business in Afghanistan and about the income tax obligations they might incur if they followed through with their plan. They also have asked to compare the Afghanistan tax rates and the rules governing ordinary and necessary business deductions to the respective US tax provisions. set up the memorandum. Conduct appropriate research and cite all relevant primary authority (tax code, regulations, etc.).
Skane Shipping Ltd. (SSL) operates a fleet of container ships in international trade between Sweden and Singapore. All of the shipping income (that is, that related to SSL's ships) is deemed to be earned in Sweden. SSL also owns a dock facility in Singapore that services SSL's fleet. Income from the dock facility is deemed to be earned in Singapore. SSL's income deemed attributable to Sweden is taxed at a 75 percent rate. Its income attributable to Singapore is taxed at a 25 percent rate. Last year, the dock facility had operating revenues of $11 million, excluding services performed for SSL's ships. SSL's shipping revenues for last year were $84 million. Operating costs of the dock facility totaled $14 million last year and operating costs for the shipping operation, before deduction of dock facility costs, totaled $50 million. No similar dock facilities in Singapore are available to SSL. However, a facility in Malaysia would have charged SSL an estimated $8 million for the services…
Assume that your Saudi affiliate reports sales revenue of SR 211000. Translate this revenue figure to Omani Rial using the following spot rate. OMR 1 = SR 10.2
4. FANIS trades used cars. He bought from the BMW dealership in Germany 50 cars XI 1800cc for 1.750.000€, in total. The cost of transporting the cars from Germany to customs was 25000€. For the customs clearance of the cars, including the customs broker's fee, the amount of € 250,000 was paid to customs. BMW, based on an agreement, made a 5% discount due to quantity but also issued an invoice of € 50,000 for late payment. Five cars were sold for €42000 every 15 days after the balance sheet expired. FANIS gave a €1000 commission to a local dealer to mediate the sale of the cars through his clientele. It is requested that is the cost of ownership and what is the net realizable value of the inventory. What is the final price of its valuation?
BIC Co. is residing in Spain and exports bottles of wine in its Mexican Market for 225 Mexican Peso each bottle which costs BIC Co. 50 Pounds from wine distillery in United Kingdom. Exchange rates identified are the following for June 10, 2022:· 1 Euro = 15 Mexican Peso = 10 PoundsHow much total gross profit in Euro doesBIC Co. made for June 10, 2022 considering the firm exported 3,000 wine bottles?