Essay about Quattroporte Inc.

3466 WordsJun 8, 201314 Pages
Quattroporte Inc. PLG#2: Ireland, Guernsey, Malta Sandra Hamilton Abdullah Hanna Jatin Kot Presented to Professor Geoff Reid EMBA 602 University of Fredericton February 24th, 2013 Contents Executive Summary 3 The Business Model 3 National profiles Political and Policy Direction 4 Guernsey……………………………………………………...……………………4 Malta………………………………………………………….……………………6 Ireland………………………………………………………………………….…..7 Globalization & Comparative Advantage 7 Primary Factors Most Influencing Profitability 7 Corporate taxation 7 Productivity and Availability of Human Resources 8 Currency exchange rates 9 Consumer Taxation – VAT 9 Capital Gains Tax Policy 9 Banking 10 Foreign Direct Investment 10 Intellectual…show more content…
When establishing a subsidiary in this locale, Quattroporte, will need to consider offering higher wages and benefits in order to attract talent from existing local companies. As a British protectorate, without having to contribute tax revenue to the United Kingdom, Guernsey enjoys the national security, political stability and the advanced financial systems offered by the UK Crown. Figures released as recently as January 30th 2013 from Guernsey Finance state that “Guernsey remains the domicile of incorporation for more non-UK entities listed on the London Stock Exchange (LSE) than any other jurisdiction globally”; meaning that Guernsey continues to provide a gateway to accessing capital from around the world. This convenient state of affairs is not without its challenges. To date, non- EU member Guernsey has resisted pressure from the EU to establish a level playing field with the EU members and set a corporate tax rate of 10%. However, it is important to note that the pro-forma calculations confirm that even if Guernsey were to adopt a 10% levy on corporate taxation, Guernsey would still remain the most profitable location for Quattroporte compared to Malta and Ireland. Malta Malta is an independent island nation located south of Italy in the Mediterranean Sea, a member of the European Union, and utilizes the Euro as its national currency. Malta’s strengths as a tax-haven for corporate entities rely in the low rates of corporate taxation and a

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