Your client, Widget Manufacturing, has asked for your assistance in determining which location their company should locate it's new branch in based on the following facts:

Your client has indicated that they will be operating a new brance which will operate plant equipment worth approximately $10 million. Further they estimate that the production from this equipment will produce approximately $2 million in annual gross receipts. They need to decide between operating this plant in one of two foreign locations.

France imposes an annual property tax of 4% on the value of business property and 15% tax on gross receipts.

Alternatively, Germany does not impose a property tax, but does impose a 30% gross receipt tax.

Based on these two factors, exclusively please write a letter to your client, Widget Manufacturing, indicating whether they should should locate the new branch plant operations in France or Germany and why.

*Mention Authorities (code and rules to back up the tax advice)