Please boost your Plan to download papers
Essay example - Group Loss Relief and Double Taxation Relief
Pages 2 (502 words)
There are two major types of reliefs that a company can claim and make benefits out of them. They are group loss relief and double taxation relief. In group loss relief, a company is allowed to claim the benefits of various trading losses along with certain other reliefs of another company, provided both the companies belong to the same group…
Extract of sample
However, before understanding this type of relief, it is needed to understand what exactly double taxation is. Double taxation is defined as a situation in which a company may need to pay two or more taxes for the same asset, financial transaction or its income. Generally the situation of double taxation arises due to the overlapping of tax laws and jurisdiction between different countries when there is a company or individual residing in one country while doing business in another country. The double taxation relief helps in allowing a company or the individual to get the tax reduction from any one of its linked country, may be it is the residing country or the profit gaining country.
A group loss relief helps in allowing one company to surrender its current trading losses, excess management charges, and excess income charges to another company in the group. Here, the profits of the recipient company are set against the tax loss so that the surrendering company can get a payment on the basis of the tax saved. Again, it is common practice that a company or an individual residing in one country might want to make a taxable gain in terms or earnings and profits in another country. ...
Not exactly what