- This topic has 1 reply, 2 voices, and was last updated 8 months ago by .
- You must be logged in to reply to this topic.
Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
Hi, as discussed in the replies above, please may I know why Lamri still needs to pay an additional corporation tax of 14% (as seen in sample answer part (b) 1st paragraph), since Strymon has already been taxed at 42%, and Lamri will therefore get full credit for such tax already paid?
You are misreading the answer.
It is not that Lamri will actually be charged an extra 14%. It is saying that because Strymon will have had to pay tax at a rate 14% more than Lamri pays on its own profits, then effectively Lamri will be getting less than they would have got if they had earned those profits – it is effectively as though they have ended up paying 14% more.