In his email William outlined an idea to set up a restaurant business. He has been told by a friend that it is best for his wife to run the restaurant as a separate business for Value Added Tax purposes. Required: Briefly provide William with an outline of the VAT consequences of setting up the restaurant business in the manner he describes; particularly note any disadvantages or adverse consequences which he should be aware of. (4%)
In his email William outlined an idea to set up a restaurant business. He has been told by a friend that it is best for his wife to run the restaurant as a separate business for Value Added Tax purposes. Required: Briefly provide William with an outline of the VAT consequences of setting up the restaurant business in the manner he describes; particularly note any disadvantages or adverse consequences which he should be aware of. (4%)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In his email William outlined an idea to set up a restaurant business. He has been told by a friend that it is best for his wife to run the restaurant as a separate business for Value Added Tax purposes.
Required: Briefly provide William with an outline of the VAT consequences of setting up the restaurant business in the manner he describes; particularly note any disadvantages or adverse consequences which he should be aware of. (4%)
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