Explain how the tax legislation in your country attempts to prevent creative accounting by multinational companies

      

Explain how the tax legislation in your country attempts to prevent creative accounting by multinational companies

  

Answers


Wilfred
Explain tax legislation attempts to prevent creative accounting by multinational companies
- Where non- Residents Company produces goods in Kenya and sells them elsewhere. The gains or profits arising there-from are deemed to be derived from Kenya.
- No deduction of administrative and management expenses are allowed if a branch is operating from Kenya unless the management expenses have been incurred in Kenya
- The prices of goods and inputs must be reported at arm’s length
- Royalties are not allowed for a non-resident companies
Wilfykil answered the question on February 25, 2019 at 10:41


Next: “Many objectives of the Common Market for Eastern and Southern African (COMESA) treaty remain elusive due to emerging challenges”. Highlight four such challenges
Previous: A generalized system of preference (GSP) applies where a country grants preferential treatment to goods and services received from another country.

View More CPA Advanced Taxation Questions and Answers | Return to Questions Index


Exams With Marking Schemes

Related Questions