Thursday, 21 April 2016

Cima F1 Exam Question No 48

Question No 48:

SB operates in Country X and is considering starting business activities in a foreign country. An entity may conduct a foreign operation through a branch or a subsidiary.
Which ONE of the following is an advantage of SB operating its foreign operation as a subsidiary?

A loss made by the foreign operation will be available to the SB group.
SB will only pay tax on dividends received from its foreign operation.
All profits/losses overseas will be subject to tax in Country X.
SB can claim tax depreciation on its foreign operation’s assets.

Answer: B

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