Tax(see attachment) Essay Example | Topics and Well Written Essays - 3000 words

Tax(see attachment) - Essay ExampleManufacturing part in UK and then exporting to thirdly world countries is not viable due to various fiscal factors. Hence the company has decided to set up a manufacturing unit in any of the third world country. This will help the company to maximize its profits, and at the same time give an prospect to expand and explore new markets. The following report addresses the various have a go at its that have to be considered from international measure perspective while expanding operations offshore.While setting up an overseas operation there argon certain very important tax related issues that need to be considered before choosing an appropriate location. The issue might seem to be too complicated initi all(prenominal)y given the numerous nations and their individual profound and political systems but there appears to be abroad consensus among all the nations of the world regarding tax matters. And, this is surely a matter of utmost relief to comp anies that intend to operate across political boundaries as tax matters therefore create problems in estimating income earned by a subsidiary, more so what portion of it can be rightly considered as income of the consolidated entity. However, with the phenomenal rise of multinational corporations, the vexatious issue of which state should rightfully tax which portion of the income of a multinational business entity still poses certain questions for which unambiguous answers are hard-fought to come by.Legally speaking, every state has the jurisdiction to impose tax, irrespective of whether the tax is generated within the national territory of the state (source country) or it is generated outside the domestic territory but by a jural entity that is normally resident of the state (residence country). In the international taxation regime that is adhered to by almost all the countries of the world, the country where the tax is generated has the first right to tax