Question 6
ICAN
•
2023
•
ADVANCED TAXATION
•
mixed
Case Stimulus
Tax planning is a right that taxpayers must exercise to reduce tax liability and improve profitability while fully complying with existing tax legislations to avoid penalties and further risks. Thin capitalisation and non-tax factors are important fiscal policy issues which corporate players and governments in different tax jurisdictions should not undermine.
Requirements
(
a
)
Explain the concept of ‘thin capitalisation’ and the problems it may create to both creditors and tax authorities.
(
b
)
Discuss the thin capitalisation rules put in place by the Federal Government via the provisions of the Finance Act 2019.
(
c
)
Explain briefly, SIX important non-tax factors, which may affect the choice of location of a corporate entity by a holding company in another tax jurisdiction.
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About This Question
This is
Ican
2023
Advanced Taxation
Question 6.
It is one of the
mixed
questions from the
2023
Ican
Advanced Taxation
examination.