Sunday 30 December 2012

ANOTHER CASE IN POINT OF MAKING USE OF THE TRANSFER PRICING ARRANGEMENT


ANOTHER CASE IN POINT OF MAKING USE OF THE TRANSFER PRICING ARRANGEMENT

How many of you have read the article entitled "Osborne pledges UK tax clampdown"? If you have not, please click the link below:-


Salient Features of the case:-

Starbucks paid no income taxes on revenue of 1.2 billion pounds over the past three years by using intra-company transfers and loans to record a loss for its British business, Reuters reported on Oct 15, citing company filings.

For those of you who have read, please indicate "True" or "False" to the following questions in the comment column provided below:-


I have summarised the points in case below:-

a) It is an undeniable truth that you can beat the system of either paying minimum tax or not at all, if you choose to do so.

b) No matter what, there is still a way of using the transfer pricing arrangements to shift earnings to a low-tax jurisdiction especially for the big international companies legitimately and not to mention other alternative ways.

c) In the end, you still can make use of the imperfect tax system for your advantage, if you choose to do so.

d) Who says the rich pay higher taxes?

My intention is just to demonstrate the power of our minds. Nothing is impossible, so is wealth.

Your participation in the above exercise is greatly appreciated.




No comments:

Post a Comment