Luther Industries,a Canadian firm,has a subsidiary in the United Kingdom.This year,the subsidiary reported and repatriated earnings before interest and taxes (EBIT)of £45 million.The current exchange rate is $1.86/£.The tax rate in the U.K.for this activity is 28%.Under Canadian tax codes,Luther is facing a 35% corporate tax rate on their earnings.What is Luther's Canadian tax liability on its U.K.subsidiary?

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The Answer of Luther Industries,a Canadian firm,has a subsidiary in the United Kingdom.This year,the subsidiary reported and repatriated earnings before interest and taxes (EBIT)of £45 million.The current exchange rate is $1.86/£.The tax rate in the U.K.for this activity is 28%.Under Canadian tax codes,Luther is facing a 35% corporate tax rate on their earnings.What is Luther's Canadian tax liability on its U.K.subsidiary?

Luther Industries,a Canadian Firm,has a Subsidiary in the United Kingdom