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