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Hi Sir or Ma’am
In the past paper 2016/Jun Q1 b (1) I wonder why we calculate the additional tax due to the tax rate difference from the overseas subsidiary company Pontac , that we didnot base on the shareholding percentage80%. But took the whole PATx additional tax rate?Thanks
It is not the shareholding percentage that is 80% – it is 100%.
It is just that Pontac is paying 80% of its profits as dividends (and retaining the rest).The question says that tax is payable on the profits (not on the dividends remitted).
Thank you for the answer it cleared My question.
What if it holds 80% of the shareholding from the subsidiary company, does it mean the mother company will pay 80% of the additional tax?
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