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#2 (permalink) Wed Aug 13, 2008 17:24 pm Check my email: The issue that is most likely to be picked up by the revenue... |
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Hi,
Some suggestions in CAPITAL letters:
Dear xxxx,
The issue that is most likely to be picked up by the Revenue is that of transfer pricing.
XXX is a large company and as a consequence subject to UK transfer pricing rules. These rules state that the transaction should be undertaken on an arm's length basis.
Section 2.1 of the agreement states that the arm's length principle is applied to these transactions. It would be advisable to obtain prior consent from the Revenue. The Inland Revenue might also require documentation ON how the transfer price was determined.
I can't think of any other direct taxation consequences AS FAR AS XXXX IS CONCERNED. There are no VAT issues Affecting LCM. The Chinese company would be subject to Chinese tax laws, presumably the Chengdu team have looked into that.
Under section 3 of the agreement LCM is liable for withholding tax. The WHT rate for UK REMITTANCES to China is 10% (http://www2.xxxxxxxxxf).
I hope you find this information useful.
PLEASE ACCEPT MY apologies for not being of any further assistance. xxxxx is expected to be in THE office tomorrow. He may be able to further assist you with your queries. _________________ English as a Second Language You can read my ESL story The way you write it |
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Alan Co-founder

Joined: 27 Sep 2003 Posts: 9209 Location: UK
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#3 (permalink) Wed Aug 13, 2008 18:16 pm Check my email: The issue that is most likely to be picked up by the revenue... |
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Dear Alan,
Firstly thank you for taking your time to review my email and providing suggestions.
May I ask why you replaced, documentation for how the transfer price was determined to documentation ON how the transfer price was determined. I want to understand the principle behind it. I think this is definitely a weakness in my writing. I always get my on, of, for, etc wrong.
Would it also be possible for you to recommend ways to improve and work on this error. Perhaps any tests within this website that you are acquainted with?
Many Thanks. |
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Englishlearner25 I'm new here and I like it ;-)
Joined: 11 Aug 2008 Posts: 16
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#4 (permalink) Wed Aug 13, 2008 21:42 pm Check my email: The issue that is most likely to be picked up by the revenue... |
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Hi,
Let me make a distinction here - 'documentation for' suggests to me paperwork necessary to complete a particular process/procedure. But in your sentence the documentation is needed, I understand, to explain the way something was worked out and that's why I suggested 'on' or it could as well me 'about'. In other words the paperwork isn't just a requirement as it's meant to describe how something was worked out.
I hope that clarifies my reason for the change.
Alan
PS On the general question of prepositions you might want to look at a couple of articles I've done for the site: How I got that job and the one following that in the list: Spot the preposition. _________________ English as a Foreign Language You can read my EFL story Are you a Persuader? |
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Alan Co-founder

Joined: 27 Sep 2003 Posts: 9209 Location: UK
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| "other and the other" or "others and the others" | it's all gone ('s = has OR is) |