Question Three

1. Explain the opportunities available in corporate tax planning in your county under the following headings:

1. Use of debt in the capital structure (2 marks)
2. Processing business inputs (local and imports) (2 marks)
3. Offshore business structures (2 marks)

2. A few countries and region in the world have established themselves as tax havens. However, the anticipated inflow of investments has not been as expected by these countries and regions.

1. Briefly explain the concept of tax havens (2 marks)
2. Summarize three benefits that might accrue to an investor in a tax haven. (3 marks)

3. Two of the commonly used methods for the provision of relief from international double taxation are the exemption method and the credit method. Discuss how each of the above methods is applied in practice.
4. A team of foreign investors visited your country to explore opportunities for capital investment. One of the areas that the investors were keen to know was whether your country had entered into a tax information exchange (TIEAs) with their country. Citing one benefit, explain the nature and operation of the TIEs. (3 marks)
5. Many countries are moving toward indirect tax system. Define and explain the advantages of an indirect tax system ( 3 marks)