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rewona [7]
4 years ago
14

7. Describe the ways in which multinational corporations are able to reduce their global exposure to tax liabilities. Be sure to

identify the primary tools used and the potential financial benefits from successful tax management programs.
Business
1 answer:
kiruha [24]4 years ago
7 0

Answer:

Ways in which multinational corporations are able to reduce their global exposure to tax liabilities are given below

Explanation:

There are a lot of different ways of reducing global exposure to tax liabilities a multinational corporations can opt for. Some of the ways are mentioned below.

1. Transfer pricing is an strategy for setting a transaction price between the organizations under the same ownership or control.

2. Payments for intangibles is a strategy where no taxes are paid due to the keeping of intellectual property rights.

3. Profit shifting strategy is usually used to avoid large tax rates by transferring the profits to tax haven countries or areas where the tax rate is very low.

4. Corporate debt-equity is a strategy usually used for reducing taxable profits in high tax countries.

5. The Conduit technique is used by the organization to channel their money through a country to assist favorable tax rates.

   Benefits

  • High transparency and efficiency in all tax-related processes.
  • Transaction costs can be minimized.

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Hoochie [10]

Answer:

$4,480

Explanation:

The total amount to be recorded as expense would include the cost of the item purchased an the values of the applicable taxes.

As such, the advertising expense would include the value of the goods and services tax as well as the provincial sales tax with both tax rates applied to the applicable cost.

Goods and services tax = 5% × $4,000

= $200

Provincial sales tax = 7% × $4,000

= $280

Total debit to advertising expense

= $4,000 + $200 + $280

= $4,480

7 0
3 years ago
Customer Information Programs (CIPs) use several examples to define a person opening a new account. In which scenario should the
xz_007 [3.2K]

Answer:

Option (D) is the right answer.

Explanation:

According to the scenario, the most appropriate answer is option ( D) because Stanley smith is a customer of the bank as he has a checking account in the bank.

While the other options are wrong because of the following reasons:

  • Option (A) is incorrect because the company lucky licks Inc. is the customer of the bank, not any person.
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  • Option (C) is incorrect because Herman is not the customer of the bank as he only cashes his checks in the bank.
8 0
3 years ago
On February 1st, H&B Bank originated a loan for $50,000 at an interest rate of 7.2%. On March 15th, an interest payment of $
irina [24]

Answer:

d. Over time

Explanation:

The interest revenue will be recognize over time, regardless of the payment

If we only recognize revenue at payment due, if the bank client doesn't paid then we cannot recognize the accrued interest receivable.

We will recognize over time.

6 0
3 years ago
Sunland company installs a new parking lot. The paving cost $30,000 and the lights to illuminate the new parking area cost $12,0
padilas [110]

Answer:

D. $42,000 should be debited to Land Improvements

Explanation:

The cost of the land housing the parking is recorded in the land account. Other costs such as paving cost and lights are improvements and as such are added and recorded in the Land Improvements accounts.

Total Land improvements = $30,000 + $12,000

= $42,000

The right answer is D. $42,000 should be debited to Land Improvements.

4 0
3 years ago
What is revision?<br><br> a. the step in the writing process where you look
Strike441 [17]

Answer:

Revision is a process in writing of rearranging, adding, or removing paragraphs, sentences, or words. Writers may revise their writing after a draft is complete or during the composing process

Explanation:

7 0
3 years ago
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