Submitted by: Submitted by samantakurthi
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Words: 1446
Pages: 6
Category: Other Topics
Date Submitted: 02/03/2015 05:27 AM
GROUP#3 |
FIJI VERSUS FIJI: NEGOTIATING OVER WATER |
ASSIGNMENT#1 |
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S.V.RAJESWARI – 13A1HP009
V.D.DYUTHI – 13A1HP065
S. SIDDHARTHA – 13A1HP103
KAVYA PRIYA. K – 13A1HP107
KAVYA. B – 13A2HP036
YASHWANTH KUMAR. D – 13A2HP048
PHANENDRA.S – 13A2HP050
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2. Planning document.
Issue | Fiji Government | FIJI Water |
Over Taxing/ Discriminatory taxing | Interest: Fiji Government doesn’t want to lose any revenue that can be generated by taxing FIJI water, as water is a critical natural resource and there are other companies willing to accept this tender. | Interest: FIJI waters considers the new taxing as discriminatory as it is the only company, which would be paying it. They wish to continue company operations with the old taxing. |
| Position: FIJI water to pay taxes according to new taxing policy and continue the business as it is. | Position: To stop its operation in Fiji and continue only in New Zealand. |
Employment of the 500 workers in FIJI Water | Interest: Government did not want to take the responsibility for many employees of FIJI Water losing their jobs. | Interest: The company wanted to show government the employment issues if they stop their operations and thus wanted government to not impose any tax. |
| Position: Government wanted the company to continue their operations and accept to pay tax. | Position: The company stood by its demand of not imposing tax and stopped all its operations until the government its step back on imposing tax. |
Transfer pricing | Interest: To show this as reason and make the company obey to the new tax laws. | Interest: In order to minimize the Fijian export tax payment. |
| Position: This minimizes the export tax payment and it is not correct to do this by gaining profits using the country’s natural resources. | Position: A pricing strategy: Under-pricing its water exports. |...