Week2 Essay Example | Topics and Well Written Essays - 250 words - 1

Week2 - Essay Examplediary or separate company is the most appropriate strategy as opposed to a branch because the obtain company can transfer financial assistance to the separate company from a foreign financial institution in form of grant loans, which is non possible when labelled as branch office. Besides, the separate subsidiary would be able to return the financial favour in form of dividend or commitment hence minimizing tax obligations(Barney, 2008 PWC, 2008).The IRS has their own strategies of detecting whether a smoke is remitting appropriate amount of tax either through office or field examination. The filed examiners would reckon the business strategy and determine the amount of tax payable. During such visits, they conduct auditing interviews and running tax reports(Barney, 2008 PWC, 2008). If the addition tax is found, the team will inform the corporation and require them to sign the tax report. However, the corporation may decide to decline signing until they go t hrough the report and verify the details.The tax policy is non prohibiting foreign investment but rather enhancing transparency in financial dealing. The USA tax policy especially on the transfers, states that every exchange of home must be subjected to taxation under the section 351 and 361(Barney, 2008 PWC, 2008). The corporations are required to declare in the form what details of the property is