- 4 Marks
TX – May 2019 – L3 – Q5c – Business Income – Corporate Income Tax
Evaluate the statement regarding offsetting losses from export of non-traditional products against profits from local sales.
Question
A company engages in exports of non-traditional products and makes local sales of its products. It has as recently, as of 2018, recorded huge losses on the exports but makes gains on the local sales and intends to offset the loss against the profit from the local sales as both represent its business activities.
Required: Evaluate the above statement critically in light of the tax provisions and its effect, if any, on revenue.
(4 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Business income, Export, Local sales, Losses, Non-Traditional Products, Revenue
- Level: Level 3
- Topic: Business income - Corporate income tax
- Series: MAY 2019
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