Toubani Resources Ltd T.TRE

RE: RE: RE: TRE' tax

[whoa_rimcheese]

If you did your due diligence - why would you apply an estimated tax rate to an income figure that is higher than what would actually be taxable, and then use a tax rate that isn't applicable to forestry companies to begin with???

Sorry to break it to you, but I don't think you are the next Carson Block - although you have done a good job taking his arguments from his report.

As for use of BVIs - do more research, this was, and still is, a preferred vehicle for an internationally domiciled company conducting business in China. And a BVI can still own a WFOE....they don't have to be mutually exclusive. BVIs are cheap and easy to create, less administrative burden, China has a tax treaty with British Virgin Islands, no additional taxes back at BVI, local directors are not required, etc. etc. etc.

I understand you are making the decision that the BVI structure is used to hide a fraud - and maybe you are correct. But, to simply dismiss the BVI structure as irrelevant and this is a huge red flag even using BVIs....a stretch. More research required, for both of us.

Quick question - what would a typical WFOE in the standing timber have as an effective corporate tax rate operating in Hunan province? What levies and additional tax deductions would they receive at the various levels of taxation? How would those profits be taxed where the parent company is domestically headquartered (assume Canada)? How does Canada's tax treaty impact this - does it? Is there one?