Assume Customs duty $11\%,$ supplementary duty $25\%,$ VAT $15\%,$ cost$,$ freight and insurance

$($CIF$)$ value TK $1m,$ l anding charge $1\mathrm{.}25\%,$ infrastructure development surcharge $2\mathrm{.}5\%,$ advance

income tax $3\%.$ Calculate TTI $($maximum $30$ lines$)$ Consider and docum ent the current context of

Bangladesh.

One dominant reason of MNCs investing abroad is low or no corporate tax. There are also

evidences of MNCs investing abroad even if the corporate tax rate is higher like in Bangladesh

$(45\%$ in tobacco industry$).$ In many countries, corporate tax is based on global income rather than

territorial income $($Subpart F of Internal Revenue Service Act of USA$).$

Requirements: Consider and document the current context of Bangladesh.

$($i$)$ Why MNCs invest in countries where corporate tax rate is low? $($maximum $50$ lines$)$

$($ii$)$ Why MNCs invest in countries where corporate tax rate is high? $($maximum $50$ lines$)$

$($iii$)$ In case of requirem ent? $($maximum $50$ lines$)$

$($iv$)$ what strategy MNCS apply for acquiring their raw materials? $($maximum $50$ lines$).$

$($v$)$ What is the strategy of the host country to counter the strategy in requirem ent?.

$($vi$)$ of the guest country? $($maximum $50$ lines$).$

$($vii$)$ What are the costs involved in applying overpricing strategy in requirement?.

$($viii$)$When will a MNC over invoice? $($maximum $50$ lines$).$

$($ix$)$ When will be under invoicing? $($maximum $50$ lines$).$