The United States said on Tuesday that 104 per cent duties on imports from China will take effect shortly after midnight, even as the Trump administration moved to quickly start talks with other trading partners targeted by U.S. President Donald Trump's sweeping tariff plan.
Yes, where the importer is also the manufacturer (such as cars), the factory can sell at a loss and make up the difference onshore.
However, then their tax liability is greater.
What they usually do is sell via a tax haven, the importer is based in Barbados, pays their supplier below cost, and the onshore distributor then pays the importer more than they sell for, so they make a “loss” for tax purposes. Tax is only liable on profits.
They have to show the invoice from the supplier.
Yes, where the importer is also the manufacturer (such as cars), the factory can sell at a loss and make up the difference onshore. However, then their tax liability is greater. What they usually do is sell via a tax haven, the importer is based in Barbados, pays their supplier below cost, and the onshore distributor then pays the importer more than they sell for, so they make a “loss” for tax purposes. Tax is only liable on profits.