Question: What is the major difference between domestic expansion by setting up a branch in a new province and setting up a subsidiary company in a

What is the major difference between domestic expansion by setting up a branch in a new province and setting up a subsidiary company in a new province?

Multiple Choice

A subsidiary does not have to pay tax in the province in which it operates. The parent company will pay all the taxes.

A branch can be taxed in the province on its own profits and losses.

Nothing. Both alternatives offer the same tax treatment of profits and losses.

Losses in a branch can be used by the company whereas losses in a subsidiary cannot be used.

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