march/ june arthuro

Arthuro Co pays corporation tax at 30% and Bowerscots Co pays corporation tax at 20%. A withholding tax of 5% is deducted from any dividends remitted by Bowerscots Co. There is a bilateral tax treaty between Hittyland and Owlia. Corporation tax is payable by Arthuro Co on profits declared by Bowerscots Co, but Hittyland gives full credit for corporation tax already paid in Owlia. Hittyland gives no credit for withholding tax paid on dividends in Owlia.

Bowerscots Co’s pre-tax profits can be assumed to be $45 million

in this question sir why are we not charging the withholding tax on the additional tax calculus rather why we are only charging the excess 10% corporation tax on this $45m as additional tax?