Post on 31-Aug-2014
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Importance of Knowing Tax
Liabilities in Holding Companies
When you are talking about taxes, this is a responsibility of
every earning company.
They have to pay taxes based on the
amount of income that they receive and it is their responsibility to prevent any kind of
problems in the future.
As for the value added tax or VAT, there are a couple of things that you need to know whether a holding
company should still pay it or there is an exemption.
Holding companies has been very popular
to many business-minded individuals
because the majority of the dividends given to the holding company
from their subsidiaries are often exempted
from tax.
For value added tax, there are a few basic functions that most holding companies do that will
exempt them from it.You have to remember
that your holding company will only be exempted from tax liabilities if you are
only doing these basic functions.
Acquiring Shares in Subsidiaries
Acquiring shares will not be taxable since you are not buying tangible
products or services from the
subsidiaries.
Obtaining Dividends from your Shareholdings
If you are only obtaining dividends from your subsidiaries based on the amount of shares that you
have, you are also exempted from tax.
Defending the Company and its Subsidiaries from
Takeovers
If you are only defending your company and its subsidiaries from takeovers, you can notify the taxing sector and provide some documents if they are questioning
this kind of thing.
You should be exempted of any tax if you are only defending your company and
subsidiaries.
Disposal of Shares in Subsidiaries
If you are disposing shares to subsidiaries, it doesn’t mean that you are selling products or they are buying something
for you. It is a pure investment
so no tax should be made from this.
Actually, all these activities cannot be considered as taxable supplies so if your company is only doing these activities, then you do not have to pay VAT.
Through the help of CEO, Nicholas Vita, President Bob Mayerson and the Board of
Directors, Chaired by Michael Abbott, all the processes in
the company is handled properly.
Columbia Care is also a popular holding company and they are
knowledgeable about these important facts about tax liabilities.
https://sites.google.com/site/thenickvita/