Reference no: EM132479005

Question 1. Make in each of the following points the adjustment needed to obtain the tax base of the Corporate Tax, basing the response and establishing the amount that corresponds. You must also indicate if you are facing a temporary or permanent difference. In points 8 and 9 you should not propose any adjustment, in these two cases you should describe how they affect the liquidation of the Corporate Tax.

1. The machinery was acquired for € 52,000 in January 2014. An accounting depreciation expense of € 7,000 is provided. Fiscally a maximum amortisation coefficient of 12% and a maximum period of 18 years is established.

2. The transport element or vehicle was acquired on January 1, 2013, with a price of € 25,000 and a useful life of 5 years. The accounting amortisation is carried out using the method of decreasing digit numbers.

3. Provision of € 1,250 is provided for a debt that occurs on October 1, 2016. The liability has not been claimed judicially.

4. A provision for insolvencies of € 3,000 is provided, an obligation that has already been judicially claimed.

5. The administrators have been paid for the performance of senior management functions with € 10,000.

6. An administrative penalty of € 600 has been imposed on the company.

7. The company has paid the posters for a sports conference for its employees. This serves to advertise their products and services and has cost € 1,200. The company gave the customers who attended the event a batch of products worth € 2,200. Extraordinarily, he has given his employees an assortment of products worth € 400.

8. The company is entitled to a deduction for having made investments affected to R & D of € 1,200.

9. The company has made instalment payments of € 4,400.

Question 2. Calculate the liquidation of the Corporate Tax in a word document, using the following scheme.:

Accounting result

+/- Permanent differences

+/- Temporal differences

- Set-off for tax bases from previous tax years.

Tax Base

X tax rate

Full quota

- Tax deductions, bonuses and other withholdings

Net quota

- Withholdings and part payments

Tax difference

Question 3. North S.L. is thinking of making an international expansion. However, you need to determine whether to start big in a new market or expand into a potentially large market, but at a slower and safer pace. The options that the company's management has are:

a. Enter the North American market, where it is known that their services can work, but they do not know in depth. They can enter through Canada and expand across the United States or vice versa.

b. Open slowly but firmly in the Portuguese-speaking market. Due to its proximity, they know the Portuguese market perfectly, and this would allow North S.L. access to the Brazilian market, a country with a thriving economy.

To find out which option is more beneficial for North S.L., compare the possibilities that arise and justify which of the two is better, considering which country offers better fiscal conditions and that North S.L. seek the most significant benefit.

Attachment:- The company.zip