What are the penalty and prosecution action

Reference no: EM132771319

Question - AA Ltd. is a trading company incorporated and doing business in Hong Kong. For the year ended 31 March 2020, the turnover of AA Ltd. consisted of trading income and dividend income from AA SZ Ltd., a wholly-owned subsidiary incorporated in the Mainland of China ("the Mainland"). AA Ltd. does not have its own establishment in the Mainland.

Required -

(a) From the perspective of AA Ltd., advise whether and how dividend payable by AA SZ Ltd. to AA Ltd. is:

(i) subject to PRC tax based on domestic PRC tax law and Article IO under the PRCHK Double Taxation Arrangement; and

(ii) subject to Hong Kong tax based on domestic HK tax law and Article IO under the PRC-HK Double Taxation Arrangement

(b) In a recent field audit, the Inland Revenue Department discovered that profits earned from certain sales made to customers were not reported by AA Ltd. in the profits tax return submitted for the years of assessment 2015/16 and 2016/17. What are the penalty and prosecution action(s) (if any) which can be taken against AA Ltd. by the Inland Revenue Department?

Reference no: EM132771319

Questions Cloud

Significance of antigens and antibodies to immunology : Show the difference between Acquired Immunity, Active Immunity and Passive Immunity?

What are elements of role transition from rn to apn : If on NP tract: Describe the NP core competencies as identified by NONPF and discuss how you can attain basic mastery of those competencies.

Which implement the practice of price discrimination : In order to successfully implement the practice of price discrimination? It must be difficult for consumers in one market to sell goods and services to consumer

What is the significance of microbiology to peoples lives : What is the significance of microbiology to peoples lives? Consider, if we knew far less about microbiology, how might peoples life be impacted?

What are the penalty and prosecution action : What are the penalty and prosecution action(s) (if any) which can be taken against AA Ltd. by the Inland Revenue Department

What are the different situations where a compound : What are the different situations where a compound microscope could do more appropriate job than a stereomicroscope?

How will the organization market the product : Depending on the organization and what they plan to accomplish will depend on the components that will be included in the marketing plan. A basic marketing plan

How to assess the students and align the lesson plan : As you explored in Topic 2, there are many factors that drive the course design process. Course design outlines help instructors develop lesson plans.

What is a practical application in commercial microbiology : What is a practical application in commercial microbiology for each of the following types of microscopes?

User Account

All Pages