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November 23, 2015 at 7:06 am
why upper limit and lower limit is divided by 5 when Villa Co has 3 subsidiary companies A,V,F so it should be divided by 3+1= 4 cause C is in a group with V but not with Villa.can anyone answer me pls ?
November 25, 2015 at 3:31 am
They are all associated companies with an effective interest of 51% or more.
November 23, 2015 at 2:34 am
Excellent lectures as always… It may be just be a long night, but im struggling to understand why we use losses to reduce a company who sits on the Upper limit, down into the marginal band?
It states because we are making marginal savings, but why is it savings when we wouldn’t have to pay marginal rate in the first place (it if remains in the upper limit) ? Please help as i must be missing something…!
November 25, 2015 at 3:34 am
Moving a company from that is on a larger tax rate to a marginal tax rate would attract higher tax saving because they are being moved closer to the smaller rate. In short, mathematically it would be more beneficial to to tax only 30000 at 21.25% and the remaining 60000 at 20% than to only tax 590000 at 21%. You can check to confirm
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