On what basis will each country be able to impose taxes

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Reference no: EM131838218

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Edna and Mary are stockholders in Pharma Heal and have received a substantial income from Pharma's success. Mary and Edna are citizens of the United States but reside in England and own property jointly in Sweden.

This situation has posed significant problems for their accountants because the accountants don't know where their taxes are to be paid. As an international business consultant, please advise the accountants on the following issues.

• To which of these countries will Mary and Edna have to pay income taxes?

• On what specific income will each country be able to impose taxes?

• On what basis will each country be able to impose taxes?

• How would a double taxation treaty between any of these nations possibly change your answer?

One of the most important questions in the international business community is the responsibilities of individuals living in one country, being a citizen of another country, and doing business in several other countries. Discuss the social, political, economic, and legal liabilities involved in this type of situation.

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In the said assignment, i was provided with a case study based on the taxable income. I was asked to provide answers so asked in the question after reading the whole case study. I have answered all the questions with best of my knowledge. These questions were based on edna and mary. Questions was in which country they are liable to pay the amount of tax.

Reference no: EM131838218

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