- Future123Active Member
- Posts : 1435
Join date : 2014-04-09
Super gain tax - Is it double taxation
Eg: NTB, KHL, Keells foods and others pay separately.
The combined profit and loss reported under JKH. Would JKH have to pay super gain tax again? It leads to double taxation.
- sashimaalTop contributor
- Posts : 5785
Join date : 2014-02-28
Re: Super gain tax - Is it double taxation
Whether individual companies or the group itself will be taxed is the question.
Should be individual companies. Ex: KFP, NTB, CCS
But not sure since Govt is looking at maximum funds through this initiative.
- sapumal
- Posts : 304
Join date : 2014-09-10
Re: Super gain tax - Is it double taxation
- Jana1Top contributor
- Posts : 630
Join date : 2014-02-23
Re: Super gain tax - Is it double taxation
sapumal wrote:No. It will not. You can see company profit statement and group statement. Normally group statement are virtual. If NTB has 2bn profit JKH will have 2bn virtual profit. Then it will reduce minor interests. Likewise taxation apply only where profit generates. Holding company not generating profits. They claim profits of subsidiaries.
So what will happen if company reports 2.1 bn profit while group make lost? Hw will they pay 500 mn tax? Irrespective of virtual or real, Group profit is entitled profit to the company. It is all about their rights. If Govt has started looking individual companies rather group, they will loose much revenues since most companies exceeds 2bn profit comes through group.
Of course double taxation can be eliminated by considering the amount paid by subsidiary..