a) Tax Planning and Anti-Avoidance Legislations

Tax planning involves strategically arranging financial activities to minimize tax liability legally, taking advantage of tax deductions, exemptions, and allowances. Anti-avoidance measures prevent artificial tax reduction and include:

1. Undistributed Profits: Taxing undistributed profits of controlled companies to prevent deferred dividend distribution.
2. Dividend Payment Rules: Taxing dividends paid in excess of profits at 30%.
3. Arm’s Length Principle: Ensures transactions among related parties reflect market rates.
4. Turnover Assessment: Imposing tax based on turnover when assessable profit is low.
5. Transfer Pricing: Regulates pricing among associated enterprisesSituations That May Involve Tax Evasion Tax evasion, or tax fraud, is illegal and includes:
6. Failure to file returns or provide required information.
7. Incorrect reporting or understatements of income.
8. Inflation of claims, such as expense deductions.
9. Willful neglect or refusal to pay taxes .

c)tion Agreement – Provisions and Main Objectives

Double Taxation Agreements (DTAs) prevent individuals or companies from being taxed twice on the same income by two different jurisdictions. Main objectives include:

1. Avoidance of Double Taxation: Ensures tax is only paid once.
2. Information Exchange: Facilitates transparency between tax authorities.
3. Economic Cooperation: Encourages cross-border investment and trade.
4. Prevention of Fiscal Evasion: Reduces tax evasion across borders .

d) Non-Tax Fattract Investors

Non-tax factors influencing business jurisdiction choice include:

1. Economic and Political Stability: Reliable government policies attract investments.
2. Legal and Business Infrastructure: Strong legal frameworks ease business operations.
3. Effective Communication Channels: Facilitates business networking and efficiency.
4. Dispute Resolution Mechanisms: Provides security and stability for foreign investors .