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.
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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.
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- Discuss the development of the derivative markets in Turkey.How could the acquisition of a Moldovan company by a US company for 5 million dollars in 2018 and annual profits from the US investment in Moldova at 145.000 $ in 2019 be recorded in the balance payments in Moldova and the USA in 2018 and 2019 ?Please help with question #2. The based country is Trinidad and the countries trading to is Australia, Columbia and Germany. Also explain how can we mitigate foreign exchange risk in these countries. You are asked to simulate your own multinational corporation (MNC).You are required to justify the form of their own MNC, based in the Caribbean, which tradeswith three countries outside of the North America region. Students will then examine issues relatedto foreign exchange management within their multinational corporation.This group assignment should address the following:1. The type of MNC, whether franchising, licensing, the exportation of a product soldthrough a distributor, etc. The rationale behind using this form of MNC should also begiven.2. The main foreign currencies that will be used in the business.3. The foreign exchange exposure of the company and how the company plans to managethis exposure.4. Any current financial issues that affect the operating environment of the MNC…
- Please help me with this question: IrishCo, a manufacturing corporation resident in Ireland, distributes products through a U.S. office. Current-year taxable income from such sales in the United States is $12,000,000. IrishCo's U.S. office deposits working capital funds in short-term certificates of deposit with U.S. banks. Current-year interest income from these deposits is $150,000. IrishCo also invests in U.S. securities traded on the New York Stock Exchange. This investing is done by the home office. For the current year, IrishCo has realized capital gains of $300,000 and dividend income of $50,000 from these stock investments. Compute IrishCo's U.S. tax liability, assuming that the U.S.-Ireland income tax treaty reduces withholding on dividends to 15% and on interest to 5%. Assume a 21% U.S. tax rate. IrishCo's U.S. tax liability is $Which statement is FALSE? * Interest income earned by a depositary bank under the Expanded Foreign Currency Deposit System from residents is subject to 10% final income tax. A PEZA-registered enterprise is non-taxable on its related activities. The income of an Offshore Banking Unit from forex transactions in the country is subject to regular income tax. None of the above All of the above4
- Please help with question #2. The based country is Trinidad and the countries trading to is Australia, Columbia and Germany. Explain how can we mitigate foreign exchange risk in these countries and how exchange rate will be useful. You are asked to simulate your own multinational corporation (MNC).You are required to justify the form of their own MNC, based in the Caribbean, which tradeswith three countries outside of the North America region. Students will then examine issues relatedto foreign exchange management within their multinational corporation.This group assignment should address the following:1. The type of MNC, whether franchising, licensing, the exportation of a product soldthrough a distributor, etc. The rationale behind using this form of MNC should also begiven.2. The main foreign currencies that will be used in the business.3. The foreign exchange exposure of the company and how the company plans to managethis exposure.4. Any current financial issues that affect the…Pacific Fixed Income Pension Fund is managingits business in another country and needs tobconvert its foreign income into US dollars everyquarter and pay to its sponsors. This companyenters into a forward contract with Barclay tosell a foreign currency for K1 at time T1. Theexchange rate at time T1 proves to be S1 (S1>K1). The company asks Barclay if it can roll thecontract forward until timeT2 (T2 >T1) ratherthan settle at time T1. Barclay agrees to a newdelivery price, K2. Suppose that you are the RiskManagement Department Manager of Barclay.Explain how you will calculate K2 correctly.Sicily draws a bill of exchange that states: "Eight months from date, pay to Tuscany or his order Php1,000,000.00. Signed, Sicily." The drawee named in the bill is Lazio. Tuscany negotiated the bill to Liguria, Liguria to Molise, Molise to Piedmont, and Piedmont to Veneto. Due to non-acceptance and after proceedings for dishonor were made, Veneto asked Piedmont to pay, which Piedmont did. From whom may Piedmont recover? a. Tuscany, being the payee b. Molise, as indorser to Piedmont c. Sicily, being the drawer d. Lazio, being the drawee
- Each of the statements below is either true (T) or false (F). Required: According to NZ IFRS 7, NZ IRS 9 and NZ IAS 32, indicate for each of the statements whether it is T or F. If the statement is false, rewrite the statement to make it true, otherwise leave it blank. Item (a) (b) (c) Information & Statement Statement: A stronger NZ$ is good for NZ importers as the foreign currency denominated accounts payable will be converted into lower NZ$ value. Rewrite: Information: A NZ importer has bought a call option contract to fair value hedge its accounts payable US$50,000. The exercise rate in the option is 1$NZ = US$0.6 with a contract amount US$50,000. On settlement date, the spot exchange rate is 0.65. Statement: Therefore, the importer will exercise the option as the option value is worth NZ$6,410 on settlement date. Rewrite: Information: A company issued 1 million convertible notes on 1 January 2022. The arrangement of the notes is that the noteholder has the option to convert one…Income of kind, to the extent required by any treaty obligation binding upon theGovernment of the Philippines is exempt from income taxation. a.true b.falseFinance The US and Australia operate floating exchange regimes, and they trade with each other. Early this month, the RBA increased the cash rate and, as a result, the AUD is appreciating. Explain in detail why the AUD is appreciating in reaction to higher cash rate. Your explanation must emphasise the actions of US residents and Australian residents in relation financial assets.
