Mr. Duterte and Xi Jinping entered into a loan agreement whereby the Philippines is the borrower and China as the lender. Among the stipulations in the contract provide that the POGO operators in the country shall be exempt from paying taxes. Is the exemption valid? Explain your answer.

Mr. Duterte and Xi Jinping entered into a loan agreement whereby the Philippines is the borrower and China as the lender. Among the stipulations in the contract provide that the POGO operators in the country shall be exempt from paying taxes. Is the exemption valid? Explain your answer.

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter9: Taxation Of International Transactions

Section: Chapter Questions

Problem 7DQ

See similar textbooks

Related questions

Q: The United States often links its trade policy with its foreign policy. Do you agree with this? What…

A: Trade policy can be defined as rules and regulations of a country that are formulated in line with…

Q: A bill of exchange has Naples as drawer, Venice as drawee and Palermo as payee. The bill was then…

A: A bill of exchange comes under negotiable instrument. Drawer is the person who draws the bill i.e.…

Q: The following statements are correct, except: International air and shipping carriers doing business…

A: The correct option is D, as only statement D is incorrect. Reason; International air and shipping…

Q: The Philippine Congress enacted a law requiring foreign banks to withhold taxes earned by Flipino…

A: Direct Tax is a paid by only those persons whose income exceeds the minimum income on which…

Q: If the nation in which the nonresident foreign corporation is domiciled permits a credit for taxes…

A: As per section 28(B)(5)(b) of the tax code 1997, The dividend paid by domestic corporations to…

Q: Explain how a U.S. corporation could hedge net receivables in Malaysian ringgit with a forward…

A: A forward contract is an agreement to make or take delivery of a commodity, currency or other asset…

Q: If an account in a depository bank under the foreign currency deposit system is jointly in the name…

A: Account in a Depository Bank under Foreign Currency Deposit System Joint Bank Account in the Name…

Q: Philippines want to impose a tax on the people of China because there are many Chinese people who…

A: Answer:- Tax definition:- Tax law can be defined as that branch of law where sanctioned authorities,…

Q: Assume that a US citizen collected $4,500 in interest from a US denominated account in a French bank…

A: The question is based on the concept of financial analysis.

Q: Good day This falls under caribbean Tax. Is is possible to get some assistance on this topic please…

A: A VAT (value-added tax), known in some countries as a goods and services tax, is a type of tax that…

Q: __________________________________ is a negotiable CD for a U.S. dollar deposit at a bank located…

A: i) Repurchase agreement is a short term collateralised borrowing between banks at a low interest…

Q: If a U.S. company makes a credit sale to a foreign customer required to make payment in U.S.…

A: Exchange gain or loss arises when the actual payment/receipt exceeds/declines at the time of the…

Q: A non-resident alien not engaged in trade or business derived the following income from the…

A: Introduction: A non-resident is someone who resides in one country but has interests in another.…

Q: Problem 1: A non-resident alien not engaged in trade or business derived P50,000 interest income…

A: Government charges tax from individuals and other entities with a view to finance the…

Q: Explain the Value Added Tax (VAT) rate structure in Oman and what the types of business should…

A: Value Added Taxes (VAT) Recently Oman implemented Value added Tax (VAT) system into the country to…

Q: Among the policy objectives Congress thought of with respect to enacting some of the provisions of…

A: Intellectual Property-: Intellectual property is a vast categorical explanation for the set of…

Q: Which of the following interest income derived within the Philippines is subject to basic income…

A: Interest Income: Amounts received to an entity in exchange for lending money or allowing another…

Q: As a common people in the republic in the Philippines is it necessary for us to know the process and…

A: Foreign exchange rate is referred as the exchange value, which is between the currency of two…

Q: Oman is involved in import and exports of goods through the different parts of the world. Which of…

A: The correct answer is a. Banker' Acceptance.

Q: Which of the following is true? When the BOP (balance of payment) accounts are recorded correctly,…

A: when a company purchase goods and services from other country i.e import it will debit the current…

Q: The financial account in the U.S. balance of payments includes O everything that is included in the…

A: In a balance of payments (BOP), each transaction would have a debit and credit entry, resulting in…

Q: The main function of the IMF is to: O Help resolve balance of payments problems of member countries.…

A: Following are the main functions are IMF: Providing stability for exchange. Economy stability…

Q: The United States passed the Foreign Account Tax Compliance Act in 2010 and has been requesting…

A: The Foreign Account Tax Compliance Act in 2010 has inherent disadvantages for developing countries…

Q: received by nonresident individuals from a depository bank under the expanded foreign currency…

A: The answer has been mentioned below.

Q: Which of the following is NOT income tax exempt? * BOI-registered enterprise enjoying tax…

A: Answer: Any entity that generates income outside of Philippines are out of ambit of the taxable…

Q: According to OCED , a number of countries are considered "Tax Havens" which contribute to tax…

A: Correct answer:Option.b-United states Explanation-According to modern studies, the top 10 tax havens…

Q: Should Ghana go back to the IMF to borrow to finance its expenses?

A: Analysis of the Ghana's economic woes in 2015: i) High current account and budget deficit ii) High…

Q: If US residents receive income from their foreign investments, it is counted on the US balance of…

A: Balance of payment includes Capital Account, Current Account and Financial account. Transactions are…

Q: The Tax Code provides that an international carrier doing business in the Philippines shall pay a…

A: Taxes: Taxes are the obligations levied on the varied taxpayers every year in respect of their…

Q: Which is not subject to final tax? A. Royalties earned in the Philippines B. Rental income earned…

A: Final tax is deducted at the point of source of income generation. It is a kind of withholding tax.…

Q: The percentage tax rate imposed on the international shipping carriers transporting cargoes in the…

A: International shipping carriers doing business of transporting goods from the Philippines to the…

Q: Should Ghana continue to peg the Cedi against the colonial currency basket or peg to the Chinese…

A: The question is based on the concept of Financial analysis.

Q: _______________ and _____________ are offered by a foreign borrower to investors in a national…

A: Foreign bond: It is the bond issued to holders of bonds by foreign institutions in the domestic…

Q: Which of the following is true? A. Long term interest earned by a resident foreign corporation on…

A: SOLUTION AS PER THE PHILIPPINES INCOME TAX LAWS ,ANY FOREIGN CORPORATION INTEREST INCOME WHICH HAS…

Q: Why does the United States negotiate income tax treaties with other countries?

A: Tax treaties between countries are tax agreements which are entered into by two countries to avoid…

Q: Explain how each of the following transactions enters the Nigerian balance of payments accounts.…

A: a) The Nigerian government sells 20m barrels of oil to Ghana. Answer: This enters as a credit on the…

Q: Identify those countries where Islamic and conventional financial systems operate under the same…

A: Islamic financial system is that financial system which is compliant with the Sharia law. Some of…

Q: ASSUMING ALL ELSE EQUAL - the Chinese government suddenly decided to halt its import of goods from…

A: Foreign exchange management deals with international cross-border transactions. The exchange rate…

Q: A non-resident alien not engaged in business in the Philippines, but with income from the…

A: Solution: As per given - A non-resident alien not engaged in business in the Philippines, but with…

Q: Ghana has of late signed a number of double taxation Agreements with some countries. The concerns…

A: Double taxation agreements refer to the tax treaty signed between the domestic company with any…

Q: Income of kind, to the extent required by any treaty obligation binding upon the Government of the…

A: A treaty is an agreement that formally concluded between two states or countries

Q: How can a country’s tax system affect the manner in which an operation in that country is financed…

A: The process by which a government or taxation authority imposes or collects a tax from its citizens…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Explain how a U.S. corporation could hedge net receivables in Malaysian ringgit with a forward contract. Explain how a U.S. corporation could hedge payables in Canadian dollars with a forward contract.
Assume that a German corporation exports electronic equipment to USA in a transaction denominated in dollar. Is this transaction a foreign currency transaction? Is it a foreign transaction? Explain the difference between these two concepts and their application here.
Should Ghana go back to the IMF to borrow to finance its expenses?
The ABC Corporation is a U.S. exporter that invoices its exports to the United Kingdom in British pounds. If it expects that the pound will depreciate against the dollar in the future, should it hedge its exports with a forward contract? Explain.
Suppose that an American citizen buys a movie ticket while touring in Brussels. What likely net impact will this have on the United States Balance of Payments? A debit to the current account and a credit to the capital or financial account No net impact to any of the current, capital, or financial accounts A debit to the current account and a debit to the capital or financial account A credit to the current account and a debit to the capital or financial account
Juancho Company, a manufacturing company based in Laguna, Philippines, purchased raw materials from a foreign company denominated in foreign currency. Which of the following is correct? If the foreign currency appreciates, Juancho will recognize foreign exchange loss. O If the foreign currency appreciates, Juancho will recognize foreign exchange gain. O If the foreign currency depreciates, Juancho will recognize foreign exchange loss. Any gain or loss will be deferred until the date of settlement. O No gain nor loss will be recognized in the financial statement.
Yoyo Ltd is a UK company which is selling some goods to Marcos Co, an Australan conpany. The parties have agreed that a letter of credit should be used in relation to this contractWith regard to the role of the parties and their banks, which of the following staternents is accurate?A. The importer and the issuing bank are in the UK, the exporter and the advising bank are in AustraliaB. The exporter and the issuing bank are in the UK, the importer and the advising bank are in AustraliaC. The exporter and the advising bank are in the UK, the importer and the issuing bank are in AustraliaD. The importer and the advising bank are in the UK, the exporter and the issuing bank are in Australia
The law that specifically prohibits payments to foreign officials in order to attain business is known as ____________________________. FCPA AICPA SOX IFRS
Which of the following would contribute to a positive trade balance for a country? Answer 1. Having tourists visit the country 2. Importing textiles 3. Having foreign residents buy the government bonds of the country 4. Importing financial services
If US residents receive income from their foreign investments, it is counted on the US balance of payment account as: O A. Debit in the U.S. capital account. O B. Debit in the U.S. financial account. C. Credit in the U.S. financial account. D. Credit in the U.S. current account.
Case study . The CEO of your client, Green Lotus Co. Ltd. with legal seat in Hong Kong, now wants to expand the company's business activities into mainland China. He has discovered that the PRC is a CISG-member state (since 1 January 1988), but has made the following declaration: The People's Republic of China does not consider itself bound by subparagraph (b) of paragraph 1 of article 1 and article 11 as well as the provisions in the Convention relating to the content of article 11.He asks you to comment on the implications for the form of trade agreements to be concluded between mainland Chinese and other parties.
The financial account in the U.S. balance of payments includes everything that is included in the current account. payments of pensions to U.S. citizens who now live in foreign countries. profits that Nissan of America sends back to Japan. new U.S. investments in foreign countries.