Question: step by step solution for the answer please thanks Question 11 Chocolate trading Ltd. is an international conglomerate headquartered in the UK, with profitable trading

 step by step solution for the answer please thanks Question 11
step by step solution for the answer please thanks

Question 11 Chocolate trading Ltd. is an international conglomerate headquartered in the UK, with profitable trading divisions in Venezuela and Switzerland. During the 2018-2019 tax year the company makes profits of 140m in Venezuela which is taxed at the local rate of 40% and 85m in Switzerland which is taxed at the local rate of 15% In its UK operation it has made revenues of 430m, but has incurred costs of 120m in salaries and 95m in rent. At the beginning of the year the company also invested 560m in a new factory, which has a capital allowance for tax purposes of 10% of its purchase price each year. Given the corporation tax rate in the UK is 19% and assuming there are double taxation treaties in place with both Switzerland and Venezuela, calculate the total tax liability of Chocolate trading Ltd. including a breakdown of the jurisdictions in which the tax is paid. [Total 6 marks]

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