Page 48 - Focus Group

Applicability Acid Test
5 Shipping Business (s) in
for Cargo or
Passengers
We are shipping agents who provide clearing and forwarding No
services
We operate a ship in UAE No
We operate leisure ships and private yachts and give ships No
on rental
Yes
6 IP Business Holding IP rights and earning

We hold IP for our own brands and use for our own business No
We have IP rights and we generate revenue by way from Yes

High Risk IP A) Did not create IP, B) acquired
from a group company, C)
Licensed or sold to a group
company
We acquired IP from a group company Yes
We license IP to group companies and charge Yes
royalty/franchise fee
We hold IP but we do not carry out Yes

7
interest from

We provide loans, lease assets for a Yes
We do not charge interest. We charge only a ‘fee’ Yes
No
We are only lending to our group companies and charge Yes
nominal interest regularly
We charge interest to customers for late payments No

8 Banking Business Making and giving loans-
Generally licensed as
Commercial Bank
We accept deposits and lend money Yes
No
9 Insurance Business
policies-Regulated by UAE
Insurance authority
We are insurance brokers No
No
We issue Insurance policies and accept insurance claims Yes

Check the following table
Scenarios ESR return
1 N o No
2 out, but no income Yes No
earned
3 Yes Yes
earned
Disclaimer:
This article and/or write ups and/or any of its content shall not be treated as opinion and/or advice in any circumstances of the author(s) and/
or the Chapter. Reader’s to apply their best judgement in the best interest of their requirement and should seek a formal opinion on any issue. CA Naseer Mohammed

48 TAX JOURNAL 2020 The Institute of Chartered Accountants of India (Dubai) Chapter NPIO