Fina Corporation is a U.S.-based taxpayer that provides logistics services to companies in the food products industry.

Question:

Fina Corporation is a U.S.-based taxpayer that provides logistics services to companies in the food products industry. Fina is wholly owned by a company headquartered in Asia. Fina’s U.S. taxable income for the current year is calculated as follows (amounts are in millions of U.S. dollars): 

Revenues.................$600

Expenses:

Salaries.................... (400)

Royalties.....................(80)

Interest........................(40)

Taxable income..........$80


Salaries are paid to U.S. employees in 100 locations around the country. Royalties and interest are paid by Fina to its parent company in Asia. Fina has generated more than $500 million in revenues in each of its 10 years of operation. 


Required: 

Determine the amount of base erosion anti-abuse tax (BEAT), if any, that Fina Corporation owes in the current year.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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International Accounting

ISBN: 978-1260466539

5th edition

Authors: Timothy Doupnik, Mark Finn, Giorgio Gotti, Hector Perera

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