Got a tricky question? Receive an answer from students like you! Try us!

International Taxation Issues - Essay Example

Only on StudentShare
Pages 7 (1757 words)


An Australian individual wants to commence manufacturing operations of prefabricated birdcages that come in kit assembly form, from overseas in Iberica. Australia does not have a tax treaty with Iberica. The following information is relevant:
1) Manufactured birdcages are constructed from materials purchased in Iberica on arms' length terms by the Iberican branch or subsidiary (the investment vehicle)…

Extract of sample
International Taxation Issues

3) Advise what taxation consideration need to be given if the purchase from the Iberican operations by an Australian company were not for arms' length prices. Explain the reason and the rational of this concept requiring to be addressed for Australian Taxation purposes.
In Australia, companies and individuals can be taxable persons. They are tax on income derived inside Australia and/or from outside sources and the tax treatment depends whether or not they are residents or non-residents of Australia.
A resident individual is taxable on its assessable income derived from any source, whereas a non-resident individual is taxable only on the assessable income derived in Australia. Taxes imposed may come from business income, or in the payment of interests, dividends, royalties, rent, or capital gains. Taxes can be further classified as withholding tax or taxes on the sale of goods or render of service.
A company is resident in Australia for tax purposes if: 1) It is incorporated in Australia (irrespective of where central management and control is exercised). ...
Download paper
Not exactly what you need?

Related Essays

Economics of Taxation
This is made up of the personal exemption of $3200 ($6400 for 2) and a joint standard deduction for the married couple of $10,000. The same value calculated for household 2 amounts to $8200 for personal exemption ($3200) and standard deduction ($5000).…
4 pages (1004 words)
issues in international business
Political stability would be ensured by abiding by the EUs political standards. Borders would finally be opened, reducing international barriers to the flow of goods and services, and products would now have access to all European markets. Tax policy changes would be controlled and property rights would be guaranteed, allowing foreign companies to invest on their soil, bringing jobs to the masses of unemployed.…
11 pages (2761 words)
Deferred Taxation
Such differences only impact on the taxation computation of one period.…
6 pages (1506 words)
International Taxation Rules on International Companies
The OEEC was later rearranged into the Organization for Economic Cooperation and Development (OECD) in 1961. Today, the OECD is made up of thirty countries that accept the principals of free market economy and representative democracy (Owens, 2008). Most OECD countries are developed countries, with high-income countries. Some of its members include France, United Kingdom, United States, Denmark, Finland, Spain, Sweden, Italy, Japan, among others.…
7 pages (1757 words)