CALCULATIONS SHOULD BE MADE IN USD. (4 MARKS)(20 MARKS)(20 MARKS)

2. Calculations should be made in USD. (4 marks)(20 marks)4 (a) Circular 153/2010/TT-BTC dated 28 September 2010 (Circular 153) provides detailed guidance on the issuanceand usage of invoices. Required: (i) State the types of invoices (as stipulated in Circular 153) that the seller is required to issue in each ofthe following cases:Case 1: Company A sold goods to Company B. Both companies are incorporated in Vietnam and arededuction method taxpayers.Case 2: Company A provided marketing services for Company C, a Hong Kong Company. Company Chas no permanent establishment or entity presence in Vietnam.Case 3: Company D sold foreign currency to Company A for making an overseas payment for importedgoods. Company D is licensed for foreign currency trading.Case 4: Company E, acting as an agent for Company Z, a foreign airline, collected freight from CompanyA for international transportation.Case 5: Company F, the operator of a circus, sold tickets to customers for a show. (5 marks)(ii) Describe the THREE allowable forms of invoices to be used by business establishments for their sales.(4 marks)(b) Describe the THREE cases, as stipulated in Circular 129/2008/TT-BTC dated 26 December 2008 on valueadded tax (VAT), where settlements for goods and services with a transaction value in excess of VND20 million are deemed as being made via a bank in order for the input VAT to be deductible, despitethe buyer not actually paying the seller via a bank. (3 marks)(c) Explain, in each of the following cases, the value added tax (VAT) and corporate income tax (CIT) implications(if any) of the input VAT amount:(i) A villa that a life insurance company purchased to use as its head office.(ii) A villa constructed by a construction company to use as a sample for customers’ consideration, whichwas destroyed by fire before it could be used. The villa was insured for fire, and the insurance companyagreed to pay a compensation amount which covered all of the costs (including VAT) of constructing thevilla. (iii) A villa that a construction company constructed and then sold to its chief executive officer (CEO) at asignificant discount below its market value as a reward for his excellent past performance. (3 marks)(15 marks)5 Mai Hoang Co (MHC) is the parent of a group of companies. MHC is located in Hanoi and it has a dependentmanufacturing unit in Vinh Phuc province for production of consumer goods; various dependent units being salesoffices in various provinces; a subsidiary in Ho Chi Minh City, in which it holds 90% of the shares; a subsidiary inDong Nai, in which it holds 100% of the shares; and a joint venture in Quang Ninh with a foreign partner in whichit holds 51% of the shares. All the companies and branches in the group have a fiscal year end of 31 December, except for the Dong Naisubsidiary, which has a year end of 31 March.On 1 December 2010, MHC concluded a contract to purchase the remaining 49% of the shares in the Quang Ninhjoint venture from the foreign partner. The shareholding transfer is not required to be approved by the authorities. Advise Mai Hoang Co of the corporate income tax (CIT) filing obligations in respect of:(i) Mai Hoang Co itself for the year ended 31 December 2010;(ii) its dependent manufacturing units for the year ended 31 December 2010;(iii) its other dependent sale offices for the year ended 31 December 2010;(iv) its subsidiary in Ho Chi Minh City for the year ended 31 December 2010;(v) its subsidiary in Dong Nai for the year ended 31 March 2011; and(vi) its purchase of the 49% shareholding in the Quang Ninh joint venture on 1 December 2010.Note: In each case you should state the types of tax returns to be submitted, the tax authority to which the returnsshould be submitted and the time for submission of each return. You are not required to quote the form numberof the return.(10 marks)End of Question Paper