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

Week2 - Essay Examplediary or separate company is the just about appropriate strategy as opposed to a branch because the mother company can graft financial assistance to the separate company from a foreign financial institution in path of grant loans, which is not possible when labelled as branch office. Besides, the separate subsidiary would be capable to return the financial favour in form of dividend or loyalty hence minimizing tax revenue income obligations(Barney, 2008 PWC, 2008).The IRS has their testify strategies of detecting whether a corporation is remitting appropriate amount of tax either through office or field examination. The filed examiners would visit the business strategy and determine the amount of tax payable. During such visits, they conduct auditing interviews and hurry 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 decli ne signing until they go through the report and verify the details.The tax policy is not prohibiting foreign investment but rather enhancing transparency in financial dealing. The the States tax policy especially on the transfers, states that every exchange of property must be subjected to gross 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