Trump's 104% tariffs on China to take effect at midnight, quashing earlier market gains
JeremyHuntQW12 @ JeremyHuntQW12 @lemmy.world Posts 0Comments 250Joined 8 mo. ago
JeremyHuntQW12 @ JeremyHuntQW12 @lemmy.world
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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.