Allegations were made against the Philippines producers of canned pineapples for selling the undervalued products in the U.S. The producers were also involved in exporting other products such as pineapple juice and its concentration, which lowered the overall cost of canned pineapple, as claimed by the producers. The court calculated the production cost and found it to be 90 percent more than the total production cost. To find: The applied approach is reasonable to determine the cost of production and the reasonable market value of the canned or preserved pineapple in the U.S.

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Howard James started a business in 2011 in Jamaica and has been operating in the wholesale/retail industries, where he buys and sells household items to the local market. In 2012, he expanded his business operations and opened two other businesses in Trinidad and Tobago and Antigua and Barbuda, respectively. The annual sales of the respective businesses in 2015 are: Jamaica: J$3,000.00 Trinidad and Tobago: TT$251,000.00 Antigua and Barbuda: $299.00 Mr. James failed to register his business for VAT/GCT as specified by the respective Sales Tax Acts and Regulations. He stated that there is no need for his businesses to be registered because their sales are under the VAT thresholds and thus not required to be registered. a) You are to advise Mr. James if his decision not to register his businesses is justifiable. b) Search the respective VAT Acts for the 3 countries and advise Mr. James of the benefits of being a registered taxpayer; also the penalties for not registering for VAT/GCT.

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Chapter 11, Problem 2BS

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Case summary: Allegations were made against the Philippines producers of canned pineapples for selling the undervalued products in the U.S. The producers were also involved in exporting other products such as pineapple juice and its concentration, which lowered the overall cost of canned pineapple, as claimed by the producers. The court calculated the production cost and found it to be 90 percent more than the total production cost.

To find: The applied approach is reasonable to determine the cost of production and the reasonable market value of the canned or preserved pineapple in the U.S.

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Howard James started a business in 2011 in Jamaica and has been operating in the wholesale/retail industries, where he buys and sells household items to the local market. In 2012, he expanded his business operations and opened two other businesses in Trinidad and Tobago and Antigua and Barbuda, respectively. The annual sales of the respective businesses in 2015 are: Jamaica: J$3,000.00 Trinidad and Tobago: TT$251,000.00 Antigua and Barbuda: $299.00 Mr. James failed to register his business for VAT/GCT as specified by the respective Sales Tax Acts and Regulations. He stated that there is no need for his businesses to be registered because their sales are under the VAT thresholds and thus not required to be registered. a) You are to advise Mr. James if his decision not to register his businesses is justifiable. b) Search the respective VAT Acts for the 3 countries and advise Mr. James of the benefits of being a registered taxpayer; also the penalties for not registering for VAT/GCT.

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