Tanning and dressing of leather; manufacture of luggage, handbags, saddlery and harness; dressing and dyeing of fur

ISIC 151 constitutes 'Manufacturing of goods or materials' under the Qualifying Activities list. Forensic auditors will verify the 'Substantial Transformation' test; if the process does not result in a new product with a different name, character, or use, the income may be re-characterized as 'Excluded' trading income.

Audit Red Flag

Classification of simple assembly or 're-packaging' of imported leather goods as 'Manufacturing' to evade the 9% tax on trading activities.

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