parent company loss deduct from subsidiary company proft
- 3 Answers
- 7267 Views
- Capital IQ, I also Faced
- E-Mail Answers
Answer Posted / sushmita goyal
In principle, every company pays its own corporation tax. However, if a parent company forms a tax group with one or more of its subsidiaries, the Tax and Customs Administration will on request treat the companies as a single taxpayer.
The main benefit of a tax group is that a loss incurred by one company can be deducted from the profits earned by other companies in the group.
The formation of a tax group is subject to certain conditions. The main condition is that the parent company holds at least 95% of the shares in the subsidiary. In addition, the parent company and subsidiary must:
have the same financial year;
apply the same accounting policies;
be established in the Netherlands.
| Is This Answer Correct ? | 1 Yes | 0 No |
Post New Answer View All Answers
in Sensex and Nifty, what is the measure to take the points
Plz Ask from me New Accounting Questions.
Recall a time when you faced a dissatisfied and aggressive customer. How did you handle it?
Sales Invoice 50000/- fully profit , management want profit for this year should be appear in P&L A/c and B/S 25000/- only and remaining 25000/- profit retain for the next year What will be JV for this year and next year?- Thank you
Tell me do you have any professional experience of this field?
What are the nine accounting cycles?
Write about the media role in daily life
What are the disadvantages of double entry system?
What is definition of a cash float in accounting?
List out some of the accrued expenses and the accounts in which you would record them?
what is t code of journal voucher report with amount?
Is it compulsary to give TOEFL for applying US visa.
Define balancing in accounting?
How calculate holding company account?
Assuming that a firm pays tax at a 50 per cent rate, compute the after tax cost of capital in the following cases: I. A 8.5 % preference share sold at par. II. A perpetual bond sold at par, coupon rate of interest being 7 per cent III. A ten year, 8 percent, Rs.1000 par bond sold at Rs.950 less 4 percent underwriting commission.
