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Month: July 2011

First Automobile Group

Posted on July 29, 2011 in News

In the last decade in automobile markets of the former USSR was a lot of cheap Asian cars. Bought a car and made a toning skate itself. In most of these cars are bought by our citizens in large numbers. It's all about the price. After all, the price of Chinese cars in the total mass is much lower than not only the Russian car industry, but also well-known brands. Corporations that produce cars in China, can be safely divided into two categories. 1) This is a joint venture with the world's major auto companies.

For the most part, are ordinary assembly plants that use advanced technology of the West and of course, appropriate quality components. These companies produce apart from older models, taken out of production, as modern cars sold in Europe. For example, the well-known company First Automobile Group (China) has plants in joint ownership with Volkswagen, Toyota and Mazda. They are not available new Mazda Familia (323), VW Santana and quite modern – Toyota Corolla, Mazda 6, VW Gol and Land Cruiser. 2) In this group of companies – all Chinese. They let the cars of their own development, which quietly and successfully replicate model brands. In addition, they use Chinese parts and assemblies, and use their own production technology. From well-known brands such can be called the Geely and Chery.

There are companies that own the plants with world known companies. Price range for the car affects the use in the manufacture of world technology. One can cite the example of Ford Focus, whose price in China is identical to the price of a car in our country or in the Square Ukraine. Prices for such cars as the Chevrolet Aveo, BMW 320i, Toyota Prado, Hyundai Sonata and Tucson, Honda CR-V are consistent with European standards. Excellent selling older models, or their, the Chinese development. They then, as time and cost many times cheaper than their neighbors and competitors Koreans, Japanese or Europeans. In addition, Chinese engineers are not static, and can now offer a car to liquefied natural gas. Higher gas prices do not stop producers who want to develop and implement environmentally friendly car models. However, if you look at the price of cars in China, it turns out that the country gathered in current models, produced in the same time Europe, as well as in Korea and Japan – are expensive, the price of comparable European.

VAT Contractor

Posted on July 15, 2011 in News

The only negative point in this case would be to still an open question about the need to pay VAT to the Treaty partnership, applying only USN. But this is a topic for another day … Situation 4. The buyer? No agent! Suppose that taxpayer, speaking the customer building, signed a building contract with contractors who have been provided for the contractor to perform the duty of using their own materials. Parallel (outside of the contract Contract) the taxpayer has realized a contractor of the construction materials.

At the same time realized the contractor building materials were purchased taxpayer at the expense of the target revenue in connection with which he has had complications with confirmation of the validity of expenses, which threatened crediting additional amount of significant amounts of VAT and income tax. Given that the probability of resolving disputes in favor of the taxpayer is not 100%, the taxpayer could be invited to the next version of its solution: pass the revised declaration of income tax and VAT, translating materials acquisition by the taxpayer in the plane of agency relations, ie when he carried out the acquisition of materials not their own, and on behalf of and at the expense of the principal (contractor). This will allow delete operations on purchase and sale of materials considered for the taxation of the taxpayer. In addition, if this agency fee amount equal to the amount set margins on implemented building materials, these operations do not entail the need for delivery of the specified declarations by the contractor. Proposed in this paper simulated options for preventing disputes may be applied to real tax disputes. However, it must be remembered that the introduction of any of the above options requires careful consideration, from the rationale for business purposes and to give reality committed transactions (including collateralized counterparties opportunities to sustain counter-checking), ending with meticulous design of contracts and contract documents that mediate these or other business transactions.