New Life is a multinational distribution company that started operating a Branch in Barbados on 1 January 2023. The company’s Head Office is in the Cayman Islands and is part of a group which earns more than USD 850 million for the year. It employed some of its staff from Barbados and imports good and services from the US, Cayman Islands, and other Caribbean countries. New Life repatriation policy is to transfer 50 % to 70% of its after-tax profits to the Cayman Islands. The company was of the view that for the first year of operation there was a window of no tax obligations. In December 2023, the company realized that their understanding was not correct and therefore engaged UWI Tax Consulting Services Limited to provide tax advisory and tax compliance services. Your Group was assigned this engagement. Required. Advice New Life of the tax matters that needs to be considered when operating in Barbados including any tax benefits or incentives they may consider.
New Life is a multinational distribution company that started operating a Branch in Barbados on
1 January 2023. The company’s Head Office is in the Cayman Islands and is part of a group which
earns more than USD 850 million for the year. It employed some of its staff from Barbados and
imports good and services from the US, Cayman Islands, and other Caribbean countries. New Life
repatriation policy is to transfer 50 % to 70% of its after-tax profits to the Cayman Islands.
The company was of the view that for the first year of operation there was a window of no tax
obligations. In December 2023, the company realized that their understanding was not correct
and therefore engaged UWI Tax Consulting Services Limited to provide tax advisory and tax
compliance services. Your Group was assigned this engagement.
Required.
Advice New Life of the tax matters that needs to be considered when operating in Barbados
including any tax benefits or incentives they may consider.
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