Use Of Taxation And Its Effects On Income

Use Of Taxation And Its Effects On Income
Another policy that Thatcher implemented was the use of taxation, she preferred to use indirect taxes rather than taxes on income and she also used
VAT. Thatcher's ultimate goal by doing this policy was to increase GDP, increase employment and keep inflation at bay. The use of taxation had some
good effects and some bad effects. In many ways the tax policy introduced led to a use of policy mix and also promised far too much which is why it all
went wrong.
The policy included decreasing income tax and corporation tax but increasing indirect tax and VAT. She reduced the income tax rate for the wealthy
from '83 percent to 60 percent and the common rate was cut from 33 percent to 30 percent' (Fsmitha.com. 2015). Due to this policy ... Show more
content on Helpwriting.net ...
2013), so in fact prices were higher than before, this increase in VAT is said to hit the poor harder. This was said to be done to pay the loan that the
Britain had from the International Monetary Fund and to also create budget balance. Inflation, went from above 15 percent in 1980 to
3 percent in 1986 as shown in figure 3. As you can see along with the decrease in the interest rate, GDP was slowly rising in the economy as people
were spending more of their income as their GDP per capita was increasing shown in figure 4 and people saw their income and wages become
larger. This led to Britain's goods/services and economy becoming more competitive and showing signs of recovery. The tax policy was proving to be
quite a success as it gave the economy much needed revenue, 'throughout the 1980s revenue from the 90% tax on North Sea oil extraction was used as
a short–term funding source to balance the economy and pay the costs of reform' (Wikipedia, 2015), this was helping the deficit and also allowing for
governments to spend some money on welfare benefits for the unemployed. This revenue was never seen to have been acclaimed.
'The fiscal and monetary squeeze, combined with increased revenues from the North Sea oil led to an appreciation in the exchange rate' (Hoskins, M.
2015), for
... Get more on HelpWriting.net ...

Tax Evasion And Tax Taxation
"Nothing is certain but death and taxes." Taxes are an important element of a developed society, where people concern about them, grumble about them,
and even attempt to stay away from them by different means. Not only individuals, companies and firms also adopt different strategies to avoid paying
taxes, these include tax avoidance and tax evasion. Tax avoidance is generally defined as a more 'legal' means with the taxpayer lowering his/her tax
liability by making use of the loopholes and vagueness of the tax policies to reduce the amount of tax paid in different areas, whereas tax evasion
refers to purposely understate his/her taxable amount in order to lower his/her tax liability (Jain, 1987). Tax evasion is therefore strictly against ... Show
more content on Helpwriting.net ...
In the second section, the essay will then evaluate which taxes are more vulnerable to tax avoidance and tax evasion. The paper will suggest some
particular tax bases that can be continued to use whereas the tax bases that should not be used or should be refined. In the last section, the paper
concludes by concentrating on recommending different methods to tackle the problem of tax avoidance and tax evasion.
To start with, people have exploited the freedom to build complex business structures to take advantage of the loopholes in tax rules. Tax Justice
Network (TJN), an independent international network launched in 2003 that aims to arouse attention and discuss issues related to tax and financial
globalization, have been constantly stressed the need for different countries to adopt adequate methods of corporate transparency for tax administration
purposes, for example, business ownerships registration, a popular type of tax avoidance (Corporate Reform Collective, 2014). Areas of authority
such as the British Virgin Islands are renowned for forming offshore companies to avoid paying business taxes. Tax evasion creates social problems as
well. If taxpayers successfully evade their tax payments, the hidden income eventually becomes their own wealth. As mentioned before, tax evaders are
an important element of the black market

Taxation
How would you handle the case and what aspects would you consider in the evaluation of the restructuring?
In this essay, I will address why it is in The Group's main interest to support the Tax Director's decision about restructuring the company and
re–incorporating The Group's headquarters from US Inc. to the newly incorporated UK PLC, which would be the new holding company. As a result,
the distribution functions of European subsidiaries would be centralized in the newly incorporated company based in Switzerland (SWISSCO.)
Through identifying and considering all the variables, I will evaluate the restructuring of the company. My conclusion is supported by a number of
variables and only applies if all the variables mentioned are ... Show more content on Helpwriting.net ...
The Group will be moving from a high income tax rate (US) to a low tax rate (UK). In addition to the restructuring it would shift from a worldwide
system to a territorial system, which means that as a resident company it would be subject to tax in respect of income derived from the source of
income. Furthermore, in relation to domestic rules there is only moderate CFC legislation in the UK and taxation of passive income when it comes to
dividends.
Evaluating the options:
By taking into account the non–tax and tax reasons, we are able to identify that there are positive incentives to the restructuring of The Group.
However, we must consider all the changes comprised in the decentralization of US Inc. to UK PLC. As CFO of The Group, I must evaluate that there
is a smooth shift in management into the UK's new headquarters. Regarding tax aspects, the centralization of the new HQ (UK) will lead to a transfer
of activities: all routine–based activities will be assigned to high tax jurisdictions and value–added activities will be assigned to low tax jurisdictions.
The centralization of the business unit will be transferred to the UK, for example: supply chain, financial services, intellectual property and marketing
activities. The transfer of all strategic roles and

Double Taxation
EXECUTIVE SUMMARY:
Double taxation occurs when a taxpayer is taxed twice for the same asset or income. This happens when taxing jurisdictions overlap and a transaction,
asset, or income amount is subject to taxation in both jurisdictions. When an individual must deal with double taxation, he or she may lose a significant
portion of income. In some cases, this may cause the double–taxed individual to experience a lowered standard of living. Corporations deal with double
taxation too, as a corporation pays taxes on its earnings only to have its shareholders taxed once more. Double tax treaties comprise of agreements
between two countries, which, by eliminating international double taxation, promote exchange of goods, persons, services and ... Show more content on
Helpwriting.net ...
As there is no clear definition of income and taxability thereof, which is accepted internationally, an income may become liable to tax in two countries.
In such a case, the two countries have an Agreement for Double Tax Avoidance, in which case the possibilities are:
1. The income is taxed only in one country.
2. The income is exempt in both countries.
3. The income is taxed in both countries, but credit for tax paid in one country is given against tax payable in the other country.
In India, The Central Government, acting under Section 90 of the Income Tax Act, has been authorized to enter into double tax avoidance agreements
(hereinafter referred to as tax treaties) with other countries.
Types of DTAA
DTAA can be of two types.
i.Comprehensive. ii. Limited
Comprehensive DTAAs are those which cover almost all types of incomes covered by any model convention. Many a time a treaty covers wealth tax,
gift tax, surtax. Etc. too.
Limited DTAAs are those which are limited to certain types of incomes only, e.g. DTAA between India and Pakistan is limited to shipping and aircraft
profits only.

Acting under the authority of law, the Central Government has so far entered into agreements with countries listed below: International Taxation (DTAA
Comprehensive agreements With respect to taxes on

Case Study On Taxation
Name: Shoaib Mohammed
Student id: WHZ2056
Subject: HI6028 –Taxation
Assessment: Individual assignment on TAXATION
Taxation:
Case study 1:
This case study is about a person called KIT. He has the citizenship of CHILE. we need to decide whether he is the resident of Australia and how his
income is taxed as per legislation of the Australia.
We can Prove that Kit is resident of Australia or not by following the four test done to find whether a person is a resident of Australia or not.
Definition of Resident: To be called as Resident of Australia the following rules or test is to be done:
1)Resides test
2)Domicile and permanent place of abode test
3)183–day test
4)Commonwealth superannuation test
1)Reside TEST: ... Show more content on Helpwriting.net ...
FC of taxes gets sued by different business ventures on regular basis. This is because of the expeditions taken out by different FC of Taxes in their
respective domains. The case between Crow v FC of Taxes which also changed the notions of land acquisition entities and thinking of land sellers
too. The case provided necessary foundations to support the development of sales of land. The issues involved in Crow v FC were quite complicated
and the jury had to go through a long investigation before providing the verdict. The judgement was in favour of Federation commission as Crow was
gaining profit from the land sold and the income earned was considered as assessable

Taxation and Home Tab
Aspen Falls Restaurants
Project Description:
In this project, you will modify a workbook to track taxes generated by restaurants in the Aspen Falls area. To complete the project, you will enter and
format data, create formulas and functions, create and format a pie chart and a clustered column chart, apply conditional formatting, use Find and
Replace to edit data, and finally create page footers.
Instructions:
For the purpose of grading the project you are required to perform the following tasks: Step| Instructions| Points Possible| 1| Start Excel. Download,
save, and open the Excel file named Skills_eV1_Grader_CAP.| 0| 2| On the Taxes worksheet, center the title, Aspen Falls Restaurants, across cells
D2:F2.Hint: ... Show more content on Helpwriting.net ...
| 2| 19| On the Revenue worksheet, in cell G5, insert a formula that subtracts the Local Taxes and Federal Taxes from the revenue and then divides that
remainder by the number of branches for Giorno's CafГ© indicated in the Taxes worksheet (use the cell reference, not the number). Use the fill handle
to copy the formula into cells G6:G8.Hint: To insert the formula, in cell G5, type =(E5–C5–D5)/Taxes!E5 and then press ENTER.| 4| 20| On the Meal
Deal Sales Winners worksheet, in cell J6, use the MIN function to find the lowest number of Meal Deals sold.Hint: In cell J6, type =MIN(F5:F26) and
then press ENTER.| 1.5| 21| In cells F5:F26, use the three triangles icon set in the directional style of conditional formatting to indicate where each
manager falls among the group in terms of sales.Hint: With the range selected, on the Home tab, in the Styles group, use the Conditional Formatting
button.| 1.5| 22| Add a new conditional formatting rule to format the range F5:F26 using a three–color scale. Keep the default values.Hint: With the
range selected, on the Home tab, in the Styles group, use the Conditional Formatting button.| 1.5| 23| In column E, use Find and Replace to change all
occurrences of AM Shift to Morning.Hint: With the column selected, on the Home tab, in the Editing group, use

The Externalities Of Taxation On Capital Gain
The externalities of taxation on capital gain have been a controversial debate among scholars, economists and policy makers along the timeline of
ever–changing tax reforms in the history of the United States. This introduction covers all the possible externalities that change in marginal tax rate can
have on investors' incentives and timing to sell, portfolio strategy, tax revenue collected by the government and the social welfare changes.
The first thing to clarify is that there are both positive and negative externalities on the effect of taxation on capital gain. Timing to realize the capital
gain is paramount since in the United States long–term gains (typically 1 year or more) will be taxed at a significantly lower rate than ordinary ... Show
Since a higher tax rate leads to a lower amount of realization on capital gain, it would consequently reduce the transaction fees or commission fees
charged by the agencies, which eventually reduces the market activity and causes a welfare loss.
The externality of a lower tax rate on the tax revenue could go either way. When we only consider the static analysis, we have a negative externality
that the tax revenue decreases obviously since the same amount of realization is being taxed at a lower rate. When we consider other offsetting
factors, positive externalities come in to play important roles. The first positive externality is due to the "unlocking effect" that increases the amount
of realization on capital gain, which therefore increases the tax revenue. The other positive externality is that lowering the tax rate on capital gain
would result in an increase in tax revenue due to peopleing pay taxes on higher value of their assets when realized since the value of existing stocks
increases.
The two articles I'm comparing in this paper, The Effects of Taxation on the Selling of Corporate Stock and The realization of Capital Gains by
Feldstein, Slemrod, and Yitzhaki (1980) and Measuring Permanent Responses to Capital–Gains Tax Changes in Panel Data by Burman and Randolph
(1994), both primarily focused on the "lock–in" externality, with Feldstein examining externality on tax revenue as well.
Literature reviews
Economists have debated about how realizations of capital

Taxation Is The Principle Means
Taxation is the principle means through which the government collects revenue. Government tax is used for providing essential public amenities, that
otherwise would not be provided by private sector. These essential public services provided by the government include security and physical
infrastructure. Therefore, it is vital for the country that individuals working in various economic sections pay tax. The government will then be able to
consistently offer these services to the economy, which in turn enables employers and employees to do their businesses well. For example, without a
secure environment, the private companies would obviously be threatened by other forces, resulting in limited performance. Similarly, individuals may
suffer a terrible life in this economy with no medical, school fee or superannuation benefits.
The major components of the tax revenues are the taxes on personal income, profits and gains (39%), taxes on goods and services (28%) and taxes on
corporate income and gains (18%) (David, 2015). However, the taxes on property accounts for 9% which is also important. Household income, equity,
and economy are all affected by taxation on properties in a broad way, thus special consideration is required before imposing taxes on returns of the
property holdings. In other words, any change of taxation policy on such entities may lead to various changes in the economic conditions, especially,
where the major investment for most population is in real estate

The Policies And Taxation Assessment Of Recommending...
1.1– INTRODUCTION
Under capital gain tax (CGT), property owners have enjoyed preferential tax treatment for decades, possibly with exemption allowed for residential
relief as well as benevolent tax exclusions on imputed rental income for the owners and capital growth from the disposal of a primary residence. As
stated, this lengthy essay has evolved examining the effects of these CGT policies and taxation assessment of recommending spouses into business,
either for partnership or for employment purpose.
1.2– AIMS & OBJECTIVES
The chapters that follow each focus on taxation aspect of residential CGT, IncomeTax payable (ITP) and National Insurance Contributions (NICs) as
illustrated below.
CHAPTER 2: SECTION A ANSWER
2.1– THEORECTICAL BACKGROUND OF CAPITAL GAIN TAX RULES
In 1965, Capital Gain Tax (CGT) was first announced without undertaking tax purpose, which ultimately stimulate tax avoidance in term of converting
taxable income into tax–free capital gains. Until the amendment of subsequent Finance Acts, CGT is considered for its tax implication after several
improvements were made into the Taxation of Chargeable Gains Act 1992 between 1965 and 1982. Theoretically, CGT liability involves when
chargeable asset is chargeable disposed by a chargeable person and only UK residence or ordinary UK residence are allowed for CGT. As a
consolidation from removing major reliefs, any taper, indexation or inflation are no longer accounted which made the rules in some ways more

Taxation New Zealand Essay
Taxation Arrangements. Overall, 10% of NZ households have an income of $150,000 or more and this funds 71% of our net taxation. The tax system
is an important issue for NZ's small businesses that are taxed at a 28% flat rate. Key features of New Zealand's tax system include a highly
redistributive income tax and GST (15%), but we have no inheritance tax, no capital gains tax, no payroll tax, no social security tax, no health care tax,
other than relatively low levy accident compensation insurance. The government has recently announced the possibility of tax cuts and a
business–focused tax package that seems positive for smaller businesses. In particular, the following intended changes are designed to make tax more
simple, reduce compliance costs and make for a more productive economy:
Provisional tax will allow for a new pay–as–you–go option, which should allow some 100,000 small businesses to pay tax as they generate income
from 1 April 2018.
Use–of–money interest will be reduced or eliminated for most taxpayers.
Contractors can select a withholding tax rate suited to their needs, rather than have it set for them.
The 1% monthly penalty for new debt will be scrapped from 1 April 2017.
Economic Forces. The current macro–economic environment has very sound foundations, which is of course beyond SkillPower's direct influence, but
does considerably affect the SkillPower organisation and its market, particularly in terms of customer spending patterns as examined

What Is Taxation As An Instrument Of Economic Development...
TAXATION AS AN INSTRUMENT OF ECONOMIC GROWTH AND DEVELOPMENT IN NIGERIA
BY
MOHAMMED NASIR MOHAMMED
08/02AC039
AUG, 2012
CERTIFICATION
This research work has been read and approved as meeting the requirement for the award of Bachelor of Science (Hons.) degree in the Department of
Accounting, College of Management sciences, Al–Hikmah University of Ilorin, Ilorin.
................................. .................
Mr. A.B Uthman DATE
PROJECT SUPERVISOR
.........................................................................
Mr. R.A IyandaDATE
HEAD OF DEPARTMENT (ACCOUNTING)... Show more content on Helpwriting.net ...
79
REFERENCES80
APPENDIX: QUESTINNAIRE.82
ABSTRACT
Taxation is identified as a very important tool for national economic development and growth in most societies. Taxes provide sustainable revenue for
government to carry out its activities. The government's activities help in creating and wealth and employment opportunities in the society, creating an
avenue for citizens to earn income on which taxes are levied. Through this continuous process the circle of growth and development in the country is

sustained.
But in Nigeria there is

Essay on Internet Taxation
Internet Taxation
The advent and expansion of the Internet have brought the issue of the application of state and local sales taxation to Internet, telephone, catalog, and
other "remote sales" to the forefront of the policy debate. Under current law, states cannot require corporations without a substantial presence within
their borders to collect and remit sales taxes. While all states do require residents to remit the taxes owed in the form of use tax payments, few people
send in use tax forms, rendering remote sales essentially tax–free. The revenue loss due to the lack of taxation on Internet sales has been minimal thus
far; however, states are concerned that the growth of the Internet will lead to a substantial drain on revenue. ... Show more content on Helpwriting.net ...
Note that the high court's decision was in 1992, a full two years before the commercial Web existed. The states argue that it is legally easier for them
to go after the Web sites. And therein lies the implicit threat and the only stick the states hold: They are making a not–so–subtle threat to start suing
e–commerce sites unless they start collecting state sales tax. The SSUTA group set Oct. 1 as a target date for states to start enforcement. The legal
standing that the states would have to force e–commerce sites to comply is weak at best, but it's the classic lawsuit threat: "We may lose, but you'll be
forced to spend tons of money for lawyers and appearing in courtrooms and giving depositions. And, heck, there's always a chance that we'll win, so
you might as well do what we want now and not take any chances"
Argument Against Internet Sales Taxes
Remote Sales and Taxation Issue
In a series of opinions, the Supreme Court has ruled that states cannot compel firms without a substantial nexus" within the taxing state to collect and
remit use taxes. The most important cases are National Bellas Hess, Inc. v. Department of Revenue of Ill. and Quill Corp. North Dakota. "Substantial
nexus" has been interpreted to mean a physical presence, and precludes states from requiring vendors whose only connection to the state is by mail,
phone, or Internet to remit taxes. In their 1992 decision in Quill, the court ruled that requiring out–of–state vendors to collect the use

Taxation
Taxation
Requirement 1 Part 1
(a) Explain what is meant by "income by ordinary concepts".
a) Ordinary income (s6–5) is an element of Assessable income. In the context of the Income Tax Assessment Act 1936 and ITAA 1997 assessable
income is made up of Ordinary Income and Statutory Income. Assessable income includes income according to ordinary concepts which is called
ordinary income s6–5(1).
Legislatures and courts have consistently declined to define the limits of the term "Income" and have referred to "income according to ordinary
concept and usages". Numerous tests have been defined by the courts, but "income" is not a term of art and there is no single ... Show more content on
Helpwriting.net ...
Tax Consequences that arise in respect of the payments to "Schubert"
"Schubert was offered $10,000 for his OA medal. He was in poor health at the time and required medical treatment so accepted the payment."
The amount received by Schubert will be assessable under sec6–5 of ITAA 1997 as Ordinary income in the hands of the recipient. In this case his
income is ordinary because the medal is convertible into money .
Tax Consequences that arise in respect of the payments to "Mahler"
Issue 2
Mahler entered into a contract to write an article for a magazine. He was paid $20,000 and an additional $10,000 for signing an agreement not to give
interviews on television or to journalists.
Issue 2 (i)
"Mahler entered into a contract to write an article for a magazine. He was paid $20,000"

Issue
The primary issue is whether the consideration received by Mahler is capital or income. If the amount is income then it will be assessable under s
6–5(1) of ITAA 1997, but if it is capital the application of the generalcapital gain tax provision must be considered.
Rule

Taxation Of The United States
Tax is an amount of money that a government requires people to pay according to their income, the value of their property and that is used to pay for
the things done by the government. It is a charge usually of money imposed by authority on persons or property for public purposes. According to
random history website, the history of taxation in the United States begins with the colonial protest against British taxation policy in the 1760s, leading
to the American Revolution. The independent nation collected taxes on imports (tariffs), whiskey, and (for a while) on glass windows. Taxation
started to help pay for Civil War in the U.S in July 1861. In 1913, before the start of WWI the current incometax system was turn in to law and at the
same time federal form 1040 was introduce. Every U.S citizens and permanent residents with a net income of $3000 or more are required for file
tax returns. Tax returns it is important that a taxpayer identifies the tax form that best suits their needs in terms of financial and legal conditions.
Filing the correct form will ensure that the IRS works on the taxpayers tax returns in a timely and accurate manner (Perez) Some of the widely used
tax forms for filing income tax for individuals are 1040EZ, 1040 A and the 1040. Taxes influence both individuals and economy as a whole. Main
sources of the tax receipts are individual and corporate income. No matter whether we are rich or poor, we always like to reduce our tax. Furthermore,
we need a tax

Taxation 1
Taxation 1 – Assignment 1
Q1) 1–7 Net Income for Tax Purposes
Case A:
Income Under ITA 3(a) Employment Income$46,200 Business Income$13,500 Property Loss (see ITA 3(d) below)NIL $59,700
Income Under ITA 3(b) Taxable Capital Gains$14,320 Allowable Capital Losses($23,460)NIL
Balance from ITA 3(a) And (b) $59,700
Subdivision e deductions($4,800)
Balance under ITA 3(c) $54,900
Deduction Under ITA 3(d):
Property Loss($2,350)
Net Income for Tax Purposes (Division B Income)$52,550
As the Gambling winnings and losses related to an occasional gambling habit, the income is non–taxable and the losses non–deductible. There will be
an allowable ... Show more content on Helpwriting.net ...
Note Five: Other items and reasons for their exclusion would be as follows:
Any income tax withheld is not deductible
CPP contributions, EI premiums, and United Way contributions create credits against taxes payable, but are not deductible in the determination of
employment income.
Reimbursement for the accounting course tuition is not a taxable benefit as the course is related to the employee's line of work and the employer is the
beneficiary of the additional training.
Q4) 4–1 Tax Credits
Jack Brown maximum amount of 2012 personal tax credits is: $3,309.30
Personal Tax Credit Federal10,822
Spousal Credit (10,822–7,250)3,572
Dependant Child (2,191 *3)6,573

Canada Employment tax credit1,095
Total Credits22,062
Total Taxable credits(22,062 * 15%)3,309.30
Marion Barkin maximum amount of 2012 personal tax credits is: $4,232.55
Personal Tax Credit Federal10,822
Equivalent to Spouse10,822
Dependant Children (2191*3)6,573
Total Credits28,217
Total Taxable credits(28,217 * 15%)4,232.55
There is no reduction to the dependent children deduction for income earned by the children. There is also no deduction to the Equivalent to spouse in
this example as 2 of the children have nil income and they can be

The Indian Direct Taxation Regime Essay
I.INTRODUCTION
Albert Einstein once remarked that the hardest thing in the world is to understand Income tax laws. The Indian Direct taxation regime has been
described as the most complex web of laws, rules, regulations which are extremely difficult to interpret and even more difficult to implement and
adhere to. This has led to increased litigation, loss of revenue and slowed economic growth along with an unpredictable, complex and difficult taxation
regime in India.
Various governmental committees, eminent lawyers and world famous economists have advocated the idea of phasing out deductions, exemptions and
incentives provided under the Income tax laws in India viz. a viz. a reduction in the corporate tax. The reasons behind such a measure range from
simplifying the complex nature of the Income tax regime in India to reduce the cost of collection of tax and to ensure a low level of corporate tax.
MAT or minimum alternative tax is imposed to ensure that profit making entities do not take undue advantage of the deductions, exemptions and
incentives accorded to them under the IT Act, 1961 and substantially reduce their tax liability.
Clearly, the above ideas are in conflict with each other in that the former talks about phasing out deductions, exemptions or other incentives to ensure a
simplified taxation regime while the latter talks about imposing a complex type of tax to ensure that the entities do not take undue advantage of the
deduction, exemptions and incentives.
It

A Flat Tax Is A System Of Taxation
A flat tax is a system of taxation that taxes at a uniform rate, regardless of income level. In the United States we currently use a progressive tax system,
meaning that high–income earners pay taxes at a higher rate than low–income earners. A flat tax rate is a tax system with a constant marginal rate,
which is applied to individual income. There are various tax systems that are labeled a flat tax even though they are significantly different. A true flat
rate tax is a system of taxation where one tax rate is applied to all personal income with no deductions. A flat tax is a tax that is applied at a consistent
rate with no variables in its application. In contrast with progressive or regressive taxes, where the rate that is applied ... Show more content on
Helpwriting.net ...
In the true sense of the word, these are actually progressive tax plans, but they fall in between the current progressive plan and a strictly constant
marginal rate.
PROS
1.Simplicity considered a significant benefit of the flat tax system. One tax rate makes for easy computation by the Internal Revenue Service and
straightforward payments from taxpayers.
2.Because the flat tax taxes only one income, it is easier to understand and to report.
3.The flat tax eliminates global taxation and allows the United States to compete more evenly in global markets.
4.This tax system does not discriminate based on income level; everyone pays the same percent of income.
5.An advantage of a flat tax is that no one receives special treatment; all people whether poor or rich are taxed in exactly the same way.
6.Would result in considerable savings to all parties; the time and energy businesses and individuals spend annually in preparing tax forms would be
greatly reduced, as would the costs to the government of collecting revenue.
7.The Internal Revenue Service could be substantially downsized.
8.For tax payers, the financial cost of complying with regulations set by the IRS is high.
9.With a flat tax system, a section of the tax code biased against capital formation, death tax, capital gains tax and double taxation of savings and
dividends would be removed.
10.A flat tax will only tax earned income.
11.Professional tax

Taxation International Comparison Assignment : Taxation
Taxation International Comparison Assignment
One of the major purposes of taxation is to redistribute income. The government aims to collect from earning of residents and distribute it to those
who are incapable for supporting their families. The main benefits offered to families in New Zealand, with Children less than 18 years of age, are
the working for families' tax credit and parental leave. These tax credits provide income tested benefits to families with children at home who are
under 18. There are different criteria put in place to check the eligibility of the individuals receiving the credit. The idea of family tax credit is to ensure
that every child in New Zealand is bought up in stable environment where they feel safe and healthy. All payments are made to an eligible parent to
help with the family 's day–to–day living costs. According to statistics New Zealand "1 in 4 children under the age of 18 live in households defined
as medium or high risk, or those with more than 3 risk factors". (Statistics New Zealand, 2012) These risk factors include low economic standard of
living, poor housing problems, over crowded houses and limited access to facilities. For this reason, it is duty of the government to ensure that, every
child in this country has access to a decent standard of living. This includes access to food, healthcare and education.
This report will be looking into detail on Family tax credit policies in New Zealand in comparison with that of Australia and

Taxation
Taxable Payable = Tax rate * (Assessable income (s 6–5) – Allowable deduction (s 8–1/8–5)) – Tax offset + Medicare levy and surcharge Tax offset:
For individual: franking credit, foreign tax credit; low income earner rebate For company: franking credit, foreign tax credit Low income earner: s
159N ITAA36: 600 – (36,000 – 25,000) * 0.04; Less than 25001, rebate $600 Medicare levy threshold: 50,000+ 1% surcharge 0~16284, Nil;
16285~17604, Nil + 20% of excess over 16284; over 17604, 1.5% of taxable income Deduction: (general 8–1; specific 8–5) General deduction: s 8–1
Expenditure is deductible, there must be a nexus between the expenditure and income (Ronpibon Tin case – apportionment of expenditure would be
necessary when the... Show more content on Helpwriting.net ...
в‹„ protect income – like revenue в‹„ revenue nature в‹„ deductible в‹„ protect income–producing structure – like ability to earn revenue / basement в‹„
capital nature в‹„ not deductible question 2: will significantly die or just lost portion of sales в‹„ significantly die в‹„ capital nature в‹„ not deductible
в‹„ lost portion of sales в‹„ revenue nature в‹„ deductible TD 2002/1: the legal cost would be deductible under the positive limb of s 8–1(1). They
would not be of a capital nature since they do not relate to the profit–making structure of the business. Rather they are of a recurrent nature, relating to
the day–to–day operations of the business. The cost of preparation of the partnership document – capital nature – not deductible under s 8–1 Repair: s
25–10: a repair is deductible (W Thomas & Co Pty v FCT). Improvement (FCT v Western Suburbs Cinemas), initial repair (Law Shipping Co Ltd v
IR Commrs) is not deductible Improvement: replace a whole + improve function & efficiency + different & better material Tax expense: s 25–5: TP
may claim a deduction for expenditure incurred in connection with the management or administration of their income tax affairs or compliance with
obligations imposed by law relating to another TP's income tax affair. It includes the

Taxation Case Study
Tax Consequences
Mr. Jones there was discussion of closing out your 401(k) and using that to help fund the business but I do not recommend doing so. Since you are
over 59.5 years of age you will not have to pay a penalty for withdrawal however you will have to pay income taxes on the funds. Since you will be
receiving a salary and potential bonus from the new corporation this could cause you to pay higher taxes. Also by withdrawing the funds it could
reduce your retirement benefits for later when you look to actually retire. We can discuss retirement plans for the new corporation as well which can
help you and potentially your daughter should you still hope to have her as a 40% owner.
Since you discussed in our initial meetings ... Show more content on Helpwriting.net ...
However, there are some exceptions to this to keep in mind where you could be held personally liable:
If you personally injure someone
If a loan or other debt the corporation has was personally guaranteed by you
You do not file the taxes withheld by the corporation with the respective tax agency
You do not adhere to the rules surrounding the corporation as a separate entity from you
My team and I do also recommend liability insurance to help to protect the business and yourself in the event of an accident or other problem. For
instance, if you or your daughter is in a car accident using a company car this insurance could help to avoid any need to use personal or corporate
assets to pay the settlement or fees from the lawsuit.
Tax Effect Mr. Jones, the new corporation formed will be a separate entity and that means that it will file own taxes on form 1120 and be
responsible for any tax implications. You and your daughter will have a weekly or monthly salary with taxes withheld by the corporation and you
will be required to report those wages on your respective 1040 forms each year. As owners of the corporation if the company pays out dividends then
those will be reported to you by the corporation and you will need to also report that on your 1040 forms and pay the

Taxation Law Essay
Introduction Taxation law may be described as the body of law that governs liabilities of persons to pay to the government. In this report, I will
determine to Jack John's taxable income during the given income year. So as to give proper legal advice to Jack Jones, I have to take into
consideration those issues, determine taxation residency status, determining assessable income for the year and calculating deduction of the year. After
all those issues discussed regarding Australian taxation law, it possible proper advice to Jack John accordingly his assessable income and deductions.
Taxation residency status According to the taxation law, Australian residents require to assess their income (ordinary and statutory income) which is
derived ... Show more content on Helpwriting.net ...
Domicile and permanent place of abode test According to the Domicile Act 1982 and the common law, an individual domicile is determined. The
person's domicile is determined by his or her parents' domicile. In the case, he owns a house in Vancouver, Canada that he shared with his wife and
his child before they come to Australia. Also, he does not have any property in Australia. All those facts indicate that his permanent place of adobe
outside of Australia. 183 days test According to the 183 days test, defining whether a individual is started residing in Australia and is not related for
a taxpayer is leaving Australia. if an individual has been Australia, irregularly or continuously, during greater than 183 days of the income year, the
Commissioner will conclude that his usual place of abode is Australia. In this case, on the 1st of August 2015, he left Australia to work in Canada.
Jack worked for 9 months for Samsak in Canada. This means he already stayed over 183 days outside of Australia. Commonwealth superannuation
test Under Superannuation Act 1990, if a person is member of superannuation scheme, an individual is Australian resident, or an eligible employee for
the purpose of Superannuation Act 1976; or a spouse, or child under 16, of a person covered by s 6(1)(a)(iii). Income Income from personal exertion
Rewards for

A Fair System Of Taxation
Since taxes have been collected in the United States, there has been substantial debate about what constitutes a truly fair system of taxation. After all,
"taxation without representation" was the basis on which the Revolutionary War was fought against England; the new colonies were loathe to
continue to accept a system in which they had to pay taxes that were dictated by a monarchy that appeared to have less and less interest in fairness. In
fact, Great Britain had become completely engaged in finding ways to earn income based on taxing its colonies. So resistant to the idea of taxation with
the first colonists that the first federal statutes in the United States imposing the legal obligation to pay a federal income tax were adopted by ... Show
This suggestion is viewed as an extremely fair response to the problems with the tax code, because it supports an equitable solution for all taxpayers,
regardless of their income level. However, another proposal that has become popular completely eliminates the current progressive tax code as well
as the idea of a flat tax. The Fair Tax is not a tax on income but instead would replace all existing income taxes including payroll taxes, with a single
consumption tax (Erb.) Discussion about the flat tax versus the fair tax in comparison with the current progressive income tax highlights a wide
perspective of views about the appropriate way for the government to collect revenue from its citizens. Supporters of all three configurations make
sound arguments to justify continuing with the current system or adopting one of the two alternatives. The current system, the progressive income
tax, is popular because it is essentially exactly what it sounds like, i.e., the tax rate that anyone pays rises, or progresses, as income increases. In fact,
such a progressive income tax system can be created even when the rates remain flat through the use of personal exemptions, tax credits, and tax
deductions which essentially change the tax rate that is in effect (Erb.) People tend to like progressive tax rates because they are a way of raising
revenue by taxing people who have the

Application Of Capital Gain Taxation ( Cgt ) Provisions...
INTRODUCTION:
For the application of Capital Gain Taxation (CGT) provisions under the Australian taxation system, the happening of a CGT event is must. The most
common capital gain tax event is a sale of assets. These assets may be generally the either the real estate or the shares. However, there are other events
also which are considered as CGT events.
TO WHOM APPLICABLE:
The provisions of the capital gains or losses are applicable on the following three kinds of legal personalities: Individuals. Companies. Trusts.
The CGT is applicable only on the residents of Australia. It may be applicable on the foreign nationals only if they hold an Australian property.
PROPERTIES THAT CAN BE TAXED:
The provisions of the CGT are available only on the properties which are acquired by any individual company or trust after 20th September, 1987.
The CGT provisions were introduced on the above mentioned date and it was applied prospectively. Thus, the properties acquired before 20th
September 1987 are not meant to be taxable under CGT.
The capital assets under CGT may be defined as either of the following: Property of any kind. Legal or equitable rights.
Some exemptions are also been provided under the legislation. Most of the personal assets like residential homes, vehicles and other personal assets
have been exempted from the provision.
DETERMINATION OF THE HAPPENING OF THE CGT EVENTS:
Capital gain taxes are only triggered by the CGT Events. Although there are many

Taxation Law
Assessment 1
ACCT20023 – Australian Taxation Law
Term 3, 2013
Contents
PART A.3
PART B.6
1.Gross Salary – Banyule City Council6
2.Reportable Fringe Benefits [Motor Vehicle]– Banyule City Council7
3.Motor Vehicle Allowance– Banyule City Council7
4.Gift of expensive wine from ratepayer of Banyule City Council in appreciation for solving a planning permit issue7
5.Gift of a golf club from a tax client as a birthday present7
6.Net proceeds from business – Tax advice given to private clients7
7.Hobby earnings from garage sales at his home8
8.Sale of household goods on the internet8
9.Gross Capital Gains from selling a jewellery piece8
10.Gross Capital Proceeds from sale of shares in Eastfarmers Ltd9 ... Show more content on Helpwriting.net ...
It is clearly mentioned in this assessment that the couple did not stayed in Australia for more than one–half of the fiscal years 2014 and 2015. The
conclusion is that they are considered foreign residents for Australia tax purposes during the time they have being abroad. During the period they
sold their home property and resigned from their jobs in Paris and went on holidays in Europe they are entitled to a tax offset of foreign tax (Div
770 of ITAA 1997) if they return for at least half of an income year to Australia. But only in the case they are still paying taxes overseas, the reason for
that is to avoid double taxation. The last statutory test to be applied before finally concluding John and Susan's residency for tax purposes is the
Superannuation test. In Baker v FCT [2012] AATA 168 it was held that "member of a superannuation scheme" includes an inactive member where the
taxpayer is on leave without pay. This is the case when the couple quit their full–time jobs in Australia to leave overseas for an undetermined period.
Word count: 464
TIMOTHY: In this case, to determine whether John and Susan are residents of Australia for tax purpose, the relevant rules of residency test that is set

out in Section 6(1) of ITAA 1936 must be applied. Under this section there are four separate tests and it consists of 1 common law & 3 statutory
tests, but according to the facts

Taxation In Nigeria Essay
TAXATION AND FISCAL REGULATIONS IN NIGERIA
INTRODUCTION
The Nigerian Tax System has undergone significant changes in recent times. The Tax Laws are being reviewed with the aim of repelling obsolete
provisions and simplifying the main ones. Under current Nigerian law, taxation is enforced by the 3 tiers of Government, i.e. Federal, State, and Local
Government with each having its sphere clearly spelt out in the Taxes and Levies (approved list for Collection) Decree, 1998. Of importance at this
juncture however are tax regulations pertaining to investors both foreign and local.
The importance of tax regulations cannot be over–emphasized, as most transactions with any Ministry, department, or government agency cannot be
concluded without ... Show more content on Helpwriting.net ...
Where however the taxpayer is a non–resident company or individual the tax will only be levied on the amount received or brought into Nigeria.
Computation of capital gains tax is done by deducting from the sum received or receivable from the cost of acquisition to the person realizing the
chargeable gain plus expenditure incurred on the improvement or expenses incidental to the realization of the asset. b. Value Added Tax(VAT)
This was introduced by the VAT decree No. 2 of 1993, to replace the old sales tax. It is a consumption tax levied at each stage of the consumption
chain, and is borne by the final consumer. It requires a taxable person upon registering with the Federal Board of Inland Revenue to charge and
collect VAT at a flat rate of 5% of all invoiced amounts of taxable goods and services.
VAT paid by a business on purchases is known as input tax, which is recovered from VAT charged on company's sales, known as output tax. If output
exceeds input in any particular month the excess is remitted to the Federal Board Of Inland Revenue (FBIR) but where input exceeds output the
taxpayer is entitled to a refund of the excess from FBIR though in practice this is not always possible.
A Taxpayer however has the option of recovering excess input from excess output of a subsequent period. It should be stated at this point that
recoverable input is limited to VAT on goods imported

Notes On Tax Taxation And Taxation
3.Source–source double taxation. This is when both countries consider the source of the income to be within their country. Tax treaties will provide
rules for determining the source of income. The source rules not only clarify in which country the income originated and may be tax but also states that
the country that does not impose taxes must provide a relief from double taxation."
Economic double taxation is where the same income is taxed in more than one country in the hands of different taxpayers. This can occur when
associated businesses are treated in different countries as having accrued the same profits. By using an arm's length standard tax treaties can eliminate
double taxation and tax avoidance. Another option would be to ... Show more content on Helpwriting.net ...
A resident business that is foreign owned can't have a larger tax liability than a locally owned business. Tax treaty are used to discourage tax
discrimination. They prohibit a country from imposing a higher tax rate of a non–resident with the same circumstance as a resident. Both residents and
non–residents must receive the same tax treatment. The non–discrimination rules include all taxes and not just those which are covered under the tax
treaty. This rule eliminates the fear of being subjected to tax discrimination.
Developing countries attempt to attract foreign investment by providing clear and certain tax rules through tax treaty. Tax treaties will clearly state
what the tax obligations will be to the taxpayer/business, which will simplify tax issues for those involved in cross–border activates. Under the
domestic laws tax treatment can change frequently where tax treaties are generally valid for at least 15 years therefore they provide more stability and
comfort to taxpayers about the tax treatment to the income from their activities or investments in the other country. Tax treaties are also used to get tax
administration to agree on how to interpret and apply provision as well as resolve disputes. It is important that tax treaties are interpreted the same
way in both countries otherwise income may be taxed twice (double taxation) or not at all (double

Interest Groups in Taxation
A part of the "darker side" of Washington is considered by the American public as interest groups. Even James Madison described them in the
federalist papers he wrote in 1787 as "factions" that could be dangerous. The modern day hasn't changed much. People today largely agree with
Madison in how they view interest groups. What interest groups do, how they are supported, and what their stances are an interesting mix of
controversy, clash, and representation. Interest groups are there to represent the people, usually a portion of the people. This representation stems from
either a view point or stance for a plethora of issues. There are hundreds of different interest groups that represent view points from big business.
Interest groups... Show more content on Helpwriting.net ...
Another benefit of being in a coalition is that it shows more support for the issue by more people when there is a coalition of organizations over
just one group. Coalitions can build support for many goals, such as tax policies, that are on the agenda for today for lobbyists such as Americans
for tax reform. Americans for Tax Reform is an interest group that deals with addressing tax issues. This interest group primarily lobbies for a flat
tax. They don't care if it is a flat sales tax or a flat income tax but they want a flat tax. This interest group is most similar to individualistic
conservatives' ideology. The major parallel this group has to the individual conservatives group is that they both believe in flat taxation. The biggest
policy that Americans for Tax Reform want the tax code to be broken down to limit government power over certain individuals and to make the
system equal for all. This interest group has been funded by most notably Microsoft and Time Warner. They are also funded by the general public in
the form of anonymous donations, which is similar to another interest group called Americans for Fair Taxation. The next interest group is Americans
for Fair Taxation. This interest group calls for a national sales tax. They describe this national sales tax as being more effective than the current 3
million word tax code currently implemented by the federal government.

The Taxation Of South Africa
(Alternative version to first line "Just as an egg will vary from hen to hen, so do tax systems from country to country.")
As there are no two eggs that are identical, tax systems vary from country to country. Each country has its own rules and principles to levy taxes from
its citizens and foreigners to whom it conducts business in order to support its operations. South Africa is no different. When a country's own people
conduct business, or foreigners invest or trade within its domestic jurisdiction, it is necessary for the tax system to balance carefully its domestic and
international economic objectives. It is essential to understand how the taxation system is applied to residents and non–residents in order to maximize
one's own ... Show more content on Helpwriting.net ...
Income is taxed in the country where that income originates, irrespective of the legal or physical residence of the recipient. Even though South Africa
Adopted the residence based system in 2011, many states will still tax the income derived by a person from commercial activities undertaken in their
states. A source–based system of tax imposes a taxation liability on income arising within a specific jurisdiction or territory.
From the Appellate Division of Kerguelen Sealing & Whaling Co., Ltd v CIR ЛЎ, the fundamental logic of a residence based tax system has been
contrasted to that of a source based system in the following: "In some countries residence (or domicile) is made the test of liability for the reason,
presumably, that residents, for the privilege and protection of residence, can justly be called upon to contribute towards the cost of good order and
government of the country that shelters him. In others (as in ours) the principle of liability adopted is 'source of income': again, presumably, the equity
of the levy rests on the assumption that a country that produces wealth by reason of its natural resources or the activities of its inhabitants is entitled to
a share of that wealth, wherever the recipients of it may be live. In both systems there is, of course, the assumption that the country adopting the one or
the other has effective means to enforce the levy."
For tax purposes, it is important to know how

Taxation Essay
In America, the powerful and wealthy are able to abuse the taxation system to their benefit, and this paper will demonstrate how this is done and the
solutions to those problems, as well as refute the opposition.America has had it's moments of glory and triumph yet also it's moments of failure and
loss. However, it seems nearly impossible to predict an economic recession or a war, so one can never know when tough times are approaching.
Currently, America is in the second longest period of stock market growth, ever. The natural conclusion, then, is that the economy here is healthy and
strong, and that this growth will continue. Unfortunately, however, America's stock market is in for a correction sooner or later, because the wealth and
... Show more content on Helpwriting.net ...
While the maximum tax rate on normal income is 39.6%, the maximum tax rate on capital gains, which is how many investors become rich, is
20%("How are capital gains taxed?"). In fact, investor and billionaire Warren Buffett said that in his taxes, he "Pays a lower rate than his
secretary"(HOAR). Does it honestly make sense that a man with 77 billion dollars pays less in taxes than his secretary? It is evident that capital
gains taxed at such a low rate encourage this. The third loophole, and the product of politicians and wealthy citizens of the state of Kansas, is a 0%
tax rate on Limited Liability Companies, or LLCs. The idea for the tax break was to give the state's economy a "Shot of Adrenaline", and it allowed
thousands of corporations to pay little in taxes. This means that those companies could employ more people, and spend more money on research and
development. So how could this be negative? In short, it allowed individuals to form Limited Liability Companies with only a single employee:
themselves. This means that very wealthy people can organize into an LLC, and pay nothing in income taxes, cheating the system. However, it is
impractical for the poor to do the same, as they don't have nearly as much to gain from this. According to Kansas Attorney James P. Zakoura, This
costs the state of Kansas "at least $260 million in needed revenue year after year"(MONTGOMERY). The tax system in America is unfair to

Taxation Case Study
Task one Issues: 1. Are activities relating to use of land a business or a hobby? 2. Are the amounts related to the land deductible or not under general
rules? * the loan to purchase the land and interest expense * council rates and insurance in respect of the land * payment to develop plans for
proposed building 3. If no, is there a "specific deduction" section? References: ITAA97 s8–1–––general deductions: you can deduct from your
assessable income any loss or outgoing to the extent that it is necessarily incurred in carrying on a business for the purpose of gaining or producing
your assessable income, and you... Show more content on Helpwriting.net ...
And under ITAA97 s6–1, if an individual is an Australia resident, he/she need to satisfy ordinary concepts test or one of three statutory residence tests.
So in link with your circumstances, you got the teaching contact of university in England. It is sure that the ruling will directly do another three tests
that are domicile test, the 183–day test and commonwealth superannuation test. In the light of your fact, I feel that only the second rule will be
looked. Because the second statutory test delimits constructive residence in Australia is attributed to a person who is actually present in Australia for
a total period of more than half the income year unless usual place of abode is outside Australia or does not intended to take up residency in Australia
and an individual is a resident under third the third test if he/she is a contributing member of the superannuation fund, the fact is that you have recently
completed your study and never worked in Australia before. In test two, it will be judged whether you are domiciled in Australia unless permanent
place of abode is outside Australia. You are born in Australia and have always lived with your parent before coming to the UK, which means your
base–home is Australia. So the important factor to the ruling depends on whether you establish a permanent place of abode outside Australia. We need
to consider what your intention, family business and assets are. There are some similar cases can be referred such

Taxation In Canada Essay
In Canada, there are three main government levels of taxation which are, Federal, through the Canadian Revenue Agency; Provincial / Territorial,
through respective provincial/territorial finance or revenue departments; and Municipal, through local government. There are different types of taxes
applied by these levels of government on consumers, wage earners, and businesses. The basic types of taxes include Income tax, derived from an
individual's employment or a corporation's business revenues; Consumer taxes, imposed on the production, sale, or consumption of goods and
services; Property taxes, derived from the sale and transfer of property, and Import / Export, based on the movement of goods across borders. The
amount of tax each Canadian ... Show more content on Helpwriting.net ...
Business taxes can have a huge impact on the profitability of businesses and the amount of business investment. Taxation is a very important factor in
the financial investment decision–making process because a lower tax burden allows the company to lower prices or generate higher revenue, which
can then be paid out in wages, salaries and/or dividends. Business taxes include, Federal Income Tax; a tax levied by a national government on annual
income, Payroll Tax; a tax an employer withholds and/or pays on behalf of their employees based on the wage or salary of the employee,
Unemployment Tax; a federal tax that is allocated to unemployment agencies to fund unemployment assistance for laid–off workers, and Sales Tax; a
tax imposed by the government at the point of sale on retail goods and services. Sales tax is based on a percentage of the selling prices of the goods
and services. Consumers pay sales taxes, but effectively, business pay them since the tax increases consumer's costs and causes them to buy less.
The Canadian Revenue Agency (CRA) collects income taxes. Each year, people who are Canadian residents for tax purposes complete an income tax
return. On this return, you list your taxable income, deductions and tax credits to calculate how much tax you owe. This diagram represents the types
of federal taxes, from personal to

Taxation Essay
A own family commercial enterprise may be organized as a partnership, limited legal responsibility employer (LLC), an S business enterprise, or as a
C organisation. even though a C employer has the biggest tax benefits, any dividend profits will be challenge to double taxation. furthermore, S and C
groups are greater complicated business entities and extra taxes, which includes the nation corporate franchise tax, could additionally must be paid. A
limited legal responsibility corporation with 2 or extra participants is taxed as a partnership, and while preferred partnerships are clean to arrange, they
are able to have complex tax consequences.
For earnings tax purposes, a family member can handiest be a fashionable accomplice if she owns ... Show more content on Helpwriting.net ...
one of the most common approaches of organizing a family enterprise is as a circle of relatives constrained partnership (FLP), which is taxed like a
confined partnership but in which the kids do no longer need to contribute capital or maybe work within the enterprise. possession within the FLP is
represented with the aid of FLP gadgets, which can be equal to shares in a enterprise in that every unit represents a positive ownership percent of the
enterprise. The FLP devices are given as presents to the kids, therefore making them constrained companions. One or both mother and father function
the overall partners who manage and operate the commercial enterprise. As restricted partners, the kids haven't any say inside the business. The benefit
of the limited partnership is that the parents can switch units of the partnership to the kids tax–free if the cost of the shares is less than the annual gift
tax exclusion restriction, that's $14,000 for 2015. A married couple can double that amount for each toddler. additional cost can be transferred tax–loose
due to the fact the devices may be discounted because of regulations on their disposition and due to the fact the restricted companions have little
control over the commercial enterprise. another benefit of FLPs is that devices can be transferred to minors below the Uniform Transfers to Minors
Act or Uniform items to

Essay on Taxation
Taxation systems are usually modeled in such a way that they take into consideration the social welfare of the citizens. The government and other
policy makers have the responsibility of ensuring that the system takes into account the needs of the citizens. The bottom line is that taxation should
foster equal distribution of resources. The rate of taxation is usually arrived at after several considerations have been made. The rates are not fixed as
they depend on the various economic changes. The issue of how taxation should be distributed among the different economic classes is yet to be
addressed.
Whenever economic turbulence increases, the policy makers adjust the taxation rates in an effort to stabilize it. When it comes to income ... Show more
The reason for tax rates is not always directly related to economic growth. For example, a higher tax on alcohol and cigarettes may serve to reduce their
consumption habits.
When it comes to income taxes, the focus is usually on jobs, personal investments, and savings. The debate on who should bear the greater burden
when it comes to income taxes is timeless. If all types of tax are aimed at developing the economy, it should be everyone's equal responsibility to
engage in taxation regardless of one's economic class. Both parties involved proclaim the legitimacy of their arguments. The articles under discussion
are representative of this debate. On one side of the debate, there are those who feel that the rich should pay more taxes. Then there are those who feel
that the rich should not be punished by shouldering the burden of taxation (Benson and White 1). From an economic theorist's point of view, both
articles articulate valid arguments. However, this does not nullify the significance of the prevailing economic situation. The above debate can be based
on various economic contexts.
One is considered rich or wealthy depending on his/her financial ability. Affluence in rich people can be measured by annual income or consumption,
lifetime expenditure or income, and wealth. Consistent with how the taxation system works, affluence should be measured annually. This might mean
that those who are rich in a particular year may not fall in the same class the

Advantages And Disadvantages Of Taxation In Malaysia
Taxation, a definition of which according to business dictionary is a means by which governments finance their expenditure by imposing charges on
citizens and corporate entities. Governments use taxation to encourage or discourage certain economic decisions. For example, reduction in taxable
personal (or household) income by the amount paid as interest on home mortgage loans results in greater construction activity, and generates more jobs.
In Malaysia, there are several types of taxes such as Personal Income Tax, Corporate Income Tax, Sales and Service Tax, Customs Duty, Local Tax and
Goods and Services Tax (GST). GST was implemented in Malaysia on 1st April 2015 and its purpose is to replace the sales and services tax.
Tax has its own pros ... Show more content on Helpwriting.net ...
Some of the disadvantages are, discourage workers, encourage cheating and burden community. First, discourage workers. No point in working
harder if more is taken away. This is because; you could end up in a higher bracket where your income is taken more if you earn more. For
example, Ali's salary is RM17,000 while Abu's salary is RM15,000. Ali needs to pay the Income Tax RM3000 while Abu only need to pay RM2000.
Ali will feel discourage because although his salary is higher than Abu's salary, he need to pay the tax more than Abu. Then, encourage cheating. This
is because, people especially the one who do business, will use tax as a medium for them to cheat other people. For example, a businessman increases
the price of their product and claim that the price of their product increases because of the tax. The customer or the society will be the victim in this
situation. Next, burden

The Taxation Of South Africa
Just as an egg will vary from hen to hen, so do tax systems from country to country. Each country has its own rules and principles to levy taxes from
its citizens and foreigners to whom it conducts business in order to support its operations. South Africa is no different. When a country's own people
conduct business, or foreigners invest or trade within its domestic jurisdiction, it is necessary for the tax system to balance carefully its domestic and
international economic objectives. It is essential to understand how the taxation system is applied to residents and non–residents in order to maximize
one's own benefits through adequate tax planning. In South Africa, the law determines the tax system through which the Commissioner must oversee
/enforce. Among all the tax acts, the Customs Act 91 of 1964, The Income tax Act 58 of 1962, and the VAT Act 89 of 1991 are the most important
ones. South Africa employs a residence–based system. This means that, except for certain exclusions; residents are being taxed on their worldwide
income regardless of where their income was earned. In other words, a resident of a particular country will be subject to the taxes of that country.
Where as in the United States, all citizens, even if they are not a resident, may be subject to their worldwide income. South Africa has not always
employed a residence–based system. Before 2011, a source–based system was being used. Income is taxed in the country where that income originates,

Taxation in India
Taxation in India
The Indian Tax Structure is quite elaborate, with clear distinction in authority between Central, State and local governments. The taxes levied by the
Central government are on income (other than tax on agriculture income which would be levied by the state government), customs duties, central
excise and service tax. The State government levies Value Added Tax(VAT), sales tax in states where VAT is not applied, stamp duty, state excise,
land revenue and tax on professions. Local bodies levy tax on property, octroi and for utilities like water supply, drainage etc. In the last 10 to 15
years, tax system in India has been subjected to significant reforms. The tax rates have been revised and tax laws have been modified. ... Show more
Direct taxes are charged on the basis of residential status and not on the basis of citizenship. The assessee are charged based upon the following factors
Resident Resident but not ordinary resident. Nonresident.
Direct Taxes Before Reform They had a major impact on economic policies, creation of savings and the trend of investment. There was no proportion
in terms of the impact of direct taxes on the economy and there relative share in total tax revenues. The system of direct taxes was very much complex
and inefficient because of the combination of high marginal rates of personal income and wealth taxation and high rates of corporate profits. The
corporate tax was pretty high. It leads to large scale evasion. Members Of Parliament and Central Government Ministers get comparatively low salaries,
but they are given a sitting allowance which is not taxable. Ministers, MP's and other high ranking government officials get government allocated
accommodation, where the charges are pretty less in comparison to the prevailing market rate. Growth in Direct Tax collection during the Financial
Year 2008–09 Net direct tax collection during the fiscal 2008–09 stands at Rs.338, 212 crore, up from Rs.312, 202 crore during 2007–08, registering a
growth of 8.33 percent. Growth in Corporate Taxes was 10.84 per cent, while Personal Income Tax (including FBT, STT and BCTT) grew at 9.09%.
Despite economic slow–down and substantial relief to noncorporate

Taxation Law
TAXATION LAW
WRITTEN GROUP ASSIGNMENT
PART A
ISSUE 1:
Is Andy a resident of Australia for the purpose of income tax?
RULE:
S6 (1) ITAA 36– definition of "resident"
There are four alternative tests helping to decide whether a person is a resident of Australia or not. An individual needs to satisfy at least one test to
prove residency.
(1) Common Law test; (2) Domicile test; (3) 183–day test; (4) Superannuation test
APPLICATION:
(1) Common Law test
According to ordinary concepts of "resident", an individual should satisfy the "Common Law test". In this particular case, Andy spends the last three
years working in Thailand, having signed a contract with a Canadian company in Australia, which doesn't fulfill ... Show more content on
Helpwriting.net ...
(3) 183–day test

The 183–day test is satisfied when a person who has actually been in Australia, continuously or intermittently, during more than one–half of the year of
income.
In the given case, Andy spent most of the year working in Thailand and he only got back to meet his family in Australia one month every three months.
Therefore, he does not satisfy this test.
(4) Superannuation test
As there is no sufficient information regarding Andy's superannuation, the test is not applicable here.
CONCLUSION:
As can be concluded by the above test and analysis, Andy satisfies the Common Law test and Domicile test. Even though the 183–day test is not
satisfied and the superannuation test is not applicable, we can still be sure that Andy can be considered as a resident for the purpose of income tax
assessment.
ISSUE 2:
How should Andy's salary and investment income be taxed?
RULE:
S6–5 (2) if you are an Australian resident, your assessable income includes the ordinary income you derived directly or indirectly from all sources,
whether in or out of Australia, during the income year.
S6–10 (4) if you are an Australian resident, your assessable income includes your statutory income from all sources, whether in or out of Australia.
S4–1 and S4–10 ITAA97:
Income tax = (taxable income * rate) – tax offset
Where taxable income = assessable income – deductions
APPLICATION:

Both the income of

Chesapeake Bay Taxation Essay
We, the state of Virginia propose, with the aid of of our neighboring states and the approbation of Maryland, to make taxation an act that can only be
done by states to their own citizens, so that we may navigate along the Potomac River and enter the Chesapeake Bay without taxation. In order to
identify the state to which people belong, identification would be needed for individual men to present when crossing into the waters of other states,
which would be applied for by citizens to the head of their states. Each identification will cost approximately $54 for each individual copy to be made,
and will be charged at $60. The money to make the identification for the middle states facing the problem with Maryland would come from
neighboring states, North Carolina, New Jersey, and Delaware, and each will contribute $3,000.... Show more content on Helpwriting.net ...
In addition, as Virginia, and its Neighboring states have omnipresent farmland from which are harvested most of Disunia's agricultural goods, by
removing the tax their interstate trading will be increased, and states in the north with a surplus of manufactured items which the middle states need but
cannot access because of their inability to pass the Chesapeake Bay without tax, will have further trade opportunities, therefore increasing their
pecuniary standing in the confederation. In addition, this law will balance out state treasuries, and make it possible for states with smaller amounts of
money in the state treasury such as Rhode Island, Delaware, and Connecticut, to trade without putting additional and unnecessary monetary stress on
them. Lastly, this will give states that aren't in a prime location regarding harbors for trade, equal opportunities to use the harbors of states on harbors
and

Federal Taxation Article Brief Essay
Arayawna Moore
ACCT 613– Federal Income Taxation
February 22, 2014
University of Maryland University College
Susan K. Duke
Issue: The Dynamic Effects of Personal and Corporate Income Tax Changes in the United States within the Labor Market
Rule: * Most corporate income is subject to a 35% statutory tax rate * Taxpayers with an ordinary income tax rate of 15% or less pay the 0% rate on
dividends. Taxpayers in the 25%, 28%, 33%, and 35% tax brackets are subject to a 15% tax rate on dividends. * 26 U.S. Code В§ 861 – Income from
sources within the United States * 26 U.S. Code В§ 3510 – Coordination of collection of domestic service employment taxes with collection of income
taxes * 26 ... Show more content on Helpwriting.net ...
It has also argued that growth can also be enhanced, by improving the design of individual taxes. In some cases, such as the reduction of corporate
taxes and the top rate of personal income tax, it is unlikely that these growth–enhancing changes will help the recovery from the current crisis. At the
same time, there are tax changes that appear to be bad for growth, such as reductions in sales taxes (particularly if they take the form of exemptions
and reductions) and property taxes that would do little to speed recovery. The tax change that shows the most promise in terms of both increased
growth and economic recovery is the reduction of income taxes of those on low incomes. This would stimulate demand, increase work incentives and
reduce income inequality. The authors display that the dependence of both growth and tax policy on initial income help explain why it is difficult to
isolate the effects of tax policy on growth.
Conclusion:
The author's analysis shows that changes in taxes have important consequences for the economy. This is important given the debate at that time on the
efficacy of fiscal policy and on the possible consequences of the fiscal consolidation that is bound to subsequently take place. "The evidence they
contributed in this article is supportive for (i) relatively large and immediate output effects following changes in tax rates (ii) tax multipliers that are

larger than most estimates of government spending

Use Of Taxation And Its Effects On Income

Recommended

Recommended

More Related Content

More from Julie Medina

More from Julie Medina (7)

Recently uploaded

Recently uploaded (20)

Use Of Taxation And Its Effects On Income