Income Tax

Income Tax
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|IAS 12 INCOME TAXES |
|HISTORY OF IAS 12 |
|April 1978 |Exposure Draft E13 Accounting for Taxes on Income |
|July 1979 |IAS 12 Accounting for Taxes on Income |
|January 1989 |Exposure Draft E33 Accounting for Taxes on Income... Show more content on Helpwriting.net ...
[IAS 12.12] The benefit of a tax| |
|loss which can be carried back to recover current tax of a prior period should be recognised as an asset. [IAS 12.13] | |
|Current tax assets and liabilities should be measured at the amount expected to be paid to (recovered from) taxation | |
|authorities, using the rates/laws that have been enacted or substantively enacted by the balance sheet date. [IAS 12.46] | |
|Recognition of Deferred Tax Liabilities | |
|The general principle in IAS 12 is that deferred tax liabilities should be recognised for all taxable temporary differences.| |
|There are three exceptions to the requirement to recognise a deferred tax liability, as follows: [IAS 12.15] | |
|liabilities arising from initial recognition of goodwill for which amortisation is not deductible for tax purposes; | |
|liabilities arising from the initial recognition of an asset/liability other than in a business combination which, at the | |
|time of the transaction, does not affect either the accounting or the taxable profit; and | |
|liabilities arising from undistributed
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Income Tax Refund
Income tax refund may take longer this year
Many people in the city did not receive their income tax refund amount, and they are unable to find the reason.
The income tax administrator said that there are two reasons why the taxpayers did not receive their tax refund. There are many taxpayers who are still
working on their income tax return form, the manual filling of the income tax form take more time than the e–filling. The other reason is, the income
tax officers are examining the tax forms that claim more refund amount.
The income tax administrator, John Schaut said that the analysis of the income tax forms for this year takes longer time because many taxpayers
claimed for higher dollar refunds. And the officers from the income tax department

US Income Tax Case Study
The United States enacted IRC 385 in 1969, which gave tax authorities the power to determine if intercompany loans were, in substance, equity
investments. The tax authorities believed then that characterising intercompany loans as equity would resolve the thin capitalisation issue. If the IRS
could deem intercompany loans to be investments, it could treat the interest payments as dividends, which are not tax deductible. However, the tax
authorities eventually determined these tools were inadequate. In 1989, Congress enacted (IRC) section 163(j) to address the concern of US earnings
being "stripped out" in the form of interest payments on debt by a U.S. subsidiary to its foreign parent company. The concern was that the U.S.
subsidiary would receive a U.S. tax deduction that reduces its U.S. taxable income while the interest paid to the foreign–based parent corporation may
not be subject to U.S. withholding tax (or subject to a reduced rate) under various income tax treaties.
The current U.S. earnings stripping rule limits the deductibility of "disqualified interest expense". Interest expense paid with respect to a debt owed to
or guaranteed by related parties is treated as "disqualified interest expense" if such interest is not subject to U.S. withholding tax ... Show more content
on Helpwriting.net ...
Even if a debt–to–equity ratio exceeds 1.5 to 1, a U.S. corporation is allowed current deductions as long as its cash flow is considered sufficient to
service the existing debt level. Under the current rules, a U.S. corporation is allowed to deduct all of its interest expense as long as the net interest
expense (interest expense minus interest income) does not exceed 50% of its adjusted taxable income. Adjusted taxable income is determined by
adjusting a corporation's taxable income for certain non–cash items (e.g., depreciation) and it roughly equals that corporation's pre–interest cash

Federal Tax And Federal Income Tax
To most, the term federal income tax is just paying the government or money they don't get. But in government and the world of finance, it is major
and involved idea which involves a great deal of focus and discussion. The United States' federal income tax is a complex system which is a necessary
function of the government. A taxable amount is determined on income, and it creates taxation for the government to accumulate money. There are
many factors that play into the complexity of the system which developed the processes of the federal income tax today. Understanding this financial
system requires a level of insight into the layers of information that the federal income tax entails. Taxation in America has always been a huge
factor of societal and governmental focus. The nation started with a hatred for taxes dating back to the tax burden placed on the American colonies
by Great Britain. Early in its history, America had few very few taxes. However, it became the major source of revenue for the United States
government. The War of 1812 created a higher need for taxation, and initiated the nation 's first sales taxes which were placed on gold, silverware,
jewelry, and watches. But in 1817 the internal taxes were repealed, and the government relied on tariffs on imported goods for funds. Once again, the
onset of war generated a necessity of greater revenue, and in 1862, during the civil war, the nation's first income tax was enacted. This income tax was
the foundation to

Income Tax And Tax Rates
Income Tax
As the name implies income tax is a percentage of a person's income but it is not quite as simple as the percentage changes depending on how much
you earn on average in a year (See Figure 1) ergo if you make more money you pay a larger amount of income tax, however most people get a 'Personal
Allowance' of ВЈ10,000 a year which you don't pay tax on therefore if you don't earn more than this amount you aren't required to pay any form of
income tax. There are certain forms of income which you don't pay tax for example certain state benefits, interest on savings, rental income below
ВЈ4,250 and premium bonds.
Percentage of income taken
Tax rateTaxable income above your Personal Allowance
Basic rate 20%ВЈ0 to ВЈ31,865
Higher rate ... Show more content on Helpwriting.net ...
The UK's corporate tax is slightly higher with Europe's average corporation tax which stands at 19.68% this fiscal year but is much lower than the
North American average of 33.25% this fiscal year and a Global average at 23.57% this fiscal year.
VAT
VAT is a form of tax which is taken from the majority of goods and services, as well as certain goods imported into the UK outside the EU. VAT can
be taken from both B2B and B2C transactions carried out by a business and can reclaim the VAT paid for goods and services required for the
business. There are three rates of VAT, Standard (20%), Reduced (5%), Zero (0%) and certain are exempt from VAT or aren't included in the UK VAT
system. To be able to register to be able to use VAT you must first pass the 'VAT threshold' which is currently В
Ј81,000, meaning your company must
have had a turnover at or above ВЈ81,000 to be eligible to apply. The rate of VAT changes over time depending on the economic climate for example
during 2008 VAT rates dropped to 15% and by 2010 they increased to 17.5% until 2011 when they raised to todays 20% rate. This change in VAT rates
can help to determine when a country is in the

Progressive Income Tax
In America, we enjoy freedoms that we often take for granted. We have the power to decide things for ourselves, such as our leaders, our rights, and
our liberties. We have the ability to debate and evaluate the effectiveness and the relevance of a law or bill, and we must use this power when it comes
to the methods of taxation. Currently, the US uses a progressive income tax as its means to raise revenue. Deborah Lee and Richard A. Grant, in
"Counterpoint: Expanding Sales Taxes Helps the Rich, Hurts the Poor," believe that a progressiveincome tax is the fairest and most constructive ways
to fund the government, and that such a tax benefits the poor more than a sales tax. Lee and Grant start their argument with wisdom, declaring that
government must have a way to tax their citizens. Political establishments must have funds to protect, serve, and govern their people. This is the way it
has been since the beginning of time. Politicians often use tax code as a background for their campaign, promising major changes. In order to
determine the best ... Show more content on Helpwriting.net ...
They use figures to show to separate families of differing incomes. One has an income $12,000 and another has an income $120,000. Next, they
estimate a cost of living at $600 and $48 in taxes from a state with an 8 percent sales tax. The low–income family pays "4.8 percent of their income"
and the high–income family pays "less than one–half of one percent of their income." The point they are trying to make is that a sales tax hurts the
poor, and a progressive income tax does not burden the poor. However, progressive income taxes might look like a good solution but they have hidden
consequences. Companies have to pay large amounts of money due to the income tax and they put that hidden burden on their customers, driving
prices up to cover the big business taxes. When the poverty stricken buy something they are really paying the high business

Tax Taxes And Income Taxes
Everyone gets frustrated with income taxes and everyone complains that they are paying more than enough, but who really pays more in federal
income taxes? Having a progressive tax system; meaning that the more money you earn, the more you will have to pay in taxes; would lead to the rich
paying for most of the taxes and not the poor. Unfortunately, many people do not realize some of the problems with thetax system itself that offsets the
balance as well as the results when it comes to taxes. There are many unseen things when looking at no more than just the statistics of who pays the
most in taxes. Anything from the tax rates, the difference between federal and individualincome taxes as well as state taxes can create a problem when
getting to the bottom of who really pays the most taxes. Government Aided benefits and even untaxed amounts take their part in income taxes because
they do make a difference on someone 's income which can alter the amount they will then owe in taxes. Although there are many ups and downs when
it comes to income taxes, one of the biggest issues is that the rich are not paying nearly enough. In the United States, our tax system, has been designed
to be progressive, sadly due to the facts that are usually looked at, causing unnecessary "top–heavy tax cuts," (12) other taxes like state and local taxes
are ignored. Obviously there will be a problem trying to get an exact definition as to who pays the most in taxes, the wealthy or the poor. So

Higher Income Tax
Rich People should not have to pay more taxes. They pay higher income tax, they should not be punished for doing well financially, and when tax rates
increase rich people flee.
One of the reasons why they should not pay more taxes is they already pay higher income tax. In America the top 3,000 people pay more income tax
than the bottom 9 million people.(Wilmers 1). Also, the top 20% of households account for 51% of all income but pay 68% of all federal taxes.(Sivy
1). If the top 3,000 people are already paying higher income tax then why should they be taxed more for other things. If only 20% account for it then
why are we raising tax on the rich for that problem.
They should also not be punished for doing well financially. Owners of properties worth over 2 million dollars would face a charge or rise in tax
from 700 million to 1.7 billion dollars.(Ojalvo, 2). Also, 46% of adults pay no federal tax.(Sivy, 2). They could face that charge but why because
they are doing well and own a new house that would mean even more money than they already pay. And if 46% pay none of the tax than why should
rich people should have pay for it. ... Show more content on Helpwriting.net ...
However, when tax rates increase rich people flee. When Francois Hollande planned temporary supertax happend french actor Gerard Depardieu fled
to Belgium to avoid paying the tax.(Wilmers 2). When the tax increase the rich flee so they don't have to pay for it.
Therefore, rich people should not have to pay more taxes. Because they pay more income tax, They should not be punished for doing well financially,
When tax rates increase rich people flee. So rich people should not have to pay more

Income Tax In The United States
If you are a working American Citizen, you pay income tax. We are so used to the income tax that we do not even look at that part of our pay checks
anymore. When we discuss our pay with friends or family we refer to it as our take–home pay not what we actually earn. Next time you receive a
paycheck stop and really look at the details. There is federal income tax, state income tax, and some areas have local income tax. Do not forget about
Social Security tax and Medicare. Now, imagine that the income taxes were erased from your paycheck. That's a big difference, is it not? Actually
getting the money you earn. That is the reason I am an advocate of the Fair Tax Plan. We get to keep the money we earn, the government still receives
revenue, and ... Show more content on Helpwriting.net ...
As tax time approaches, it's critical to understand which tax deductions are allowable for each particular individual taxpayer. Basically, the IRS
allows a deductions for business use of a home or residence and it's your responsibility to know exactly what is an allowable IRS deduction and
what is not. You obviously cannot deduct your entire home for business because you live there so follow the steps below to help you determine
what portion of your home is used for business: Determine if your home is actually being used for business by meeting 2 of the next 3 conditions:
Determine if most administrative and managerial tasks are done from the home. Determine if your home office is a separate structure. Determine
if you regularly meet clients and/or patients at your home in order to conduct business. Determine which portion of your home is used for
business. Divide the number of square feet used for a home office or home based business by the total number of square feet in your home.
Working at a desk in your den or kitchen a few days a year isn't going to allow you to get the home office deduction. If that same desk is used on a
regular basis and only for business, well then that may qualify. Determine which expenses are allowable as deductions: rent or mortgage, portion of
utility bills, travel expenses for business, computers used for business, etc. Check

Income Tax Chapter
Chapter 07
Individual Income Tax Computation and Tax Credits
True / False Questions 1.
Both the width (or range) of the tax brackets (the amount of income taxed at a particular rate) in the tax rate schedules and the range of the tax rates in
the tax rate schedules (the difference between the lowest tax rate and the highest tax rate) vary by filing status. True False 2.
The tax rate schedules are set up to tax lower levels of income at higher tax rates than higher levels of income. True False 3.
Tax rate schedules are provided for use by (relatively) higher income taxpayers while the tax tables are provided for use by (relatively) lower income
taxpayers. True False 4.
If a married couple has one primary ... Show more content on Helpwriting.net ...
Employees are not allowed to deduct FICA taxes they pay. True False 29.
Employees are allowed to deduct a portion of the FICA taxes they pay. True False 30.
Katlyn reported $300 of net income from her sole proprietorship. She is not required to pay self–employment tax. True False 31.
All else equal, taxpayers are more likely to be classified as employees rather than independent contractors if they are allowed to determine their own
working hours and work without frequent oversight. True False 32.
Tax credits reduce a taxpayer's taxable income dollar for dollar. True False 33.
The child tax credit is subject to phase–out based on the taxpayer's AGI. True False 34.
Parents may claim a child tax credit for a dependent child who is 22 years of age at the end of the year if the child is a full–time student. True False 35.
Parents may claim a child and dependent care credit for expenses incurred in providing for their dependents while the parents work as long as the
children are over age 14 and under age 20 at year end. True False 36.
John and Sally pay Janet (Sally's older sister) to watch John and Sally's child Dexter during the day. Janet cares for Dexter in her home. John and
Sally may claim a child and dependent care credit based on the amount they pay Janet to care for Dexter. True False 37.
The child and dependent care credit entitles qualifying taxpayers to a credit equal to the full amount of

Charitable Income Tax Case Study
He will get a charitable income tax deduction for the amount of the present value of the remainder interest passing to charity which is $347,930 as
per the above calculation in the year of donating property, but it will be limited to 30% of his AGI with a carry over for the next five years to reduce
his future taxable income as the property that he distributed is a capital gain property. Since Mrs. Rich is the only income beneficiary of the annuity
amount, there is no taxable gift as it is protected by the marital deduction . The remainder value of the trust is not subject to gift tax . Annuity income
received by Mrs. Rich is subject to tax in under tiered system and needs to be included in her gross income. Tier 1– ordinary income to the

Personal Income Tax Rate
PERSONAL INCOME TAX RATES Assessment Year 2010, 2011 and 2012 Chargeable Income| Calculations (RM)| Rate %| Tax(RM)| 0
–2500| On the
First 2,500 | 0| 0| 2,501–5,000| Next 2,500| 1| 25| 5,001–10,000| On the First 5,000 Next 5,000| 3| 25 150| 10,001–20,000| On the First 10,000 Next
10,000| 3| 175 300| 20,001–35,000| On the First 20,000 Next 15,000| 7| 475 1,050| 35,001–50,000| On the First 35,000 Next 15,000| 12| 1,525 1,800|
50,001–70,000| On the First 50,000 Next 20,000| 19| 3,325 3,800| 70,001–100,000| On the First 70,000 Next 30,000 | 24| 7,125 7,200| Exceeding
100,000| On the First 100,000 Next RM| 26| 14,325 ..........| Assessment Year 2009
... Show more content on Helpwriting.net ...
Relief of up to RM10,000 a year for three consecutive years from the first year the interest is paid. Subject to the following conditions:(i) the
taxpayer is a Malaysian citizen and a resident; (ii) limited to one residential unit; (iii) the sale and purchase agreement is signed between 10th
March 2009 and 31st December 2010; and (iv) the residential property is not rented out. Where: (a) 2 or more individuals are eligible to claim relief for
the same property ; and (b) total interest expended by those individuals exceeds the allowable amount for that year. Each individual is allowed an
amount of relief for each year based on the following formula: A x B C where; A = total interest allowable in the relevant year; B =

Corporate and Personal Income Tax Fraud
Corporate and personal income tax fraud is not a new phenomenon; it is a part of day to day business in the global economy. Where there is worship
of money there seems to be fraud in one form or another. China is no different than any other country on this planet; it has honest corporations and
dishonest ones also. China is listed as number 8 on the top 10 countries for tax fraud (Berr, 2011). United States is still listed as number one and
Canada not even in the top 20. Hong Kong is listed as four as "The ten Biggest Tax Havens within the World" (Said, 2013).
i.Corporate Income Tax / Evasion
As recently as January the 25th of 2014, the mainland's tax commissioner, Wang Jun, says international co–operation to combat tax fraud and evasion
will be stepped up according to the South China Morning Post (Shih, 2014). China would fulfil its responsibilities as a big nation in international tax
initiatives, while using international co–operation to reform its tax system, Wang said at an Organisation for Economic Co–operation and Development
(OECD) taxation forum in Paris this week. (Shih, 2014). Fatca, which will take effect on July 1, requires foreign financial institutions to report to the
US government information about American taxpayers or foreign firms in which US taxpayers hold substantial ownership.
In 2012 Beijing recovered taxes worth US $5.7 billion, 30 times the amount in 2008, the tax administration said.
It has reported four cases of tax fraud on the mainland in

Estate Income Tax Return Essay
Soon after receiving the plan to complete the Estate Income Tax Returns, I began to execute the plan. As described in the article The Estate Income
Tax Returns: The Plan to Complete the Returns, the plan, in part, involved distributing the proceeds of the rental property sale and paying out tax
deductible expenses. However, before I could carry out my portion of the plan, I had to complete the following important tasks:
Mail W–9 forms to a couple of beneficiaries not willing to give their social security number through email or by phone.
Contact the two charities for their tax–id numbers.
Contact the attorney and tax professional for invoices.
So, once the requested information arrives, I could begin to execute the plan.
Execute the Plan
About a week after completing the important tasks, all the ... Show more content on Helpwriting.net ...
Finally, the estate was at the point where I could distribute estate property. Since the beneficiaries weren't expecting much from the estate, they were
about to receive an unexpected surprise. However, I couldn't let the excitement affect the work that still remains.
The will provided for a twisted distribution formula and I had to get it right. So, I wrote a draft of the distribution and had the attorney and tax
professional look it over. They both approved of the distribution and, at that point, I wrote out the checks. Along with the checks, I included a letter
explaining that this is the first distribution of three. The next distribution will distribute the last of the estate property, and the third distribution was to
close out what remains in the estate account. To get the beneficiaries feeling giddy, I told them that the first distribution consisted of only the proceeds
from the sale of the rental property, which accounted for about a third of the estate value. So, after reading this letter, I am sure the beneficiaries would
feel pleasantly surprised. If not

Income Tax : Tax And Tax Essay
Income tax Liability method is used to executive the income tax process for a transportation company. The deferred tax assets and liabilities are
being accomplished for upcoming tax consequences. It is attributed to distinct financial statement carrying values of current assets and liabilities
and respective tax basis as well as operating loss as well tax credit could be carried forward. The temporary differences or expected to be settled or
recovered by using enacted tax rates and being measured in deferred tax assets and liabilities to comply taxable income in the years. The changes
on deferred tax assets and liabilities were effected in tax rates, which would be accomplished as income, or expense includes enactment date at the
time of period. Valuation allowances for deferred tax assets are recorded to the extent which these assets not be realized by reversal of current taxable
of difference or forecasted taxable income or tax planning strategy. In the console interest and penalties of uncertain tax, positions are derived as
interest expense upon audit and record a liability for unrecognized tax benefits are considered to be unsustainable when the benefits of tax positions
obtained on tax returns. IDENTIFICATION AND ANALYSIS OF EXISTING ORGANIZATION STRATEGY: Business development: Hunt followed
Paul Bergant and bought 24 trucks and Interstate Commerce Commission license covering 33 states to expand his business. Later, Bergant has become
the chief legal counsel and the

Corporate Tax And Corporate Income Tax
Introduction I believe that there should be corporate income tax, as it acts as a "user fee" for the "special privileges" (Rosen, Ch 19) corporations
receive. The corporate income tax is a separate tax on corporate income, in which varies in a bracket between ten percent and thirty five percent. The
effective corporate income tax rate is estimated at thirty two percent, and eighteen percent for non–corporations. Workers compensation, labor expenses,
interest payments, and depreciation are tax deductible from taxable income. Since corporations sell stock to stockholders, those stockholders purchased
a certain percentage of the corporation. In turn, purchasing a portion of the corporate liability. If a stockholder accumulates income within the
corporation in which he holds stock shares, he reduces his tax liability. Although the shareholder's additional income would eventually be taxed, his
stock will grow at the before–tax rate of interest. This benefits the corporation and the shareholders, as neither party holds the entire liability, nor do the
shareholders pay debt if the corporation is not generating profit. Corporate income tax also preserves the integrity of personal income tax. I believe that
there should be corporate income tax, as the lack–there–of could create "potential opportunities for personal tax avoidance" (Rosen, Ch 19).
Corporate Income Tax Incidence The corporate income tax incidence is dependent on whether the perspective is from the short, long, or

Alaska Income Tax
On September 24, 1980, former state Governor Jay Hammond signed into law a bill that meant no more Alaska income tax. With the stroke of a pen,
Alaska became the last state to abolish a state tax on personal income. Now, 35–years later, Alaska is one of seven states that don't collect taxes on
earned income and the distant state's success speaks volumes about the benefits of reducing this type of tax burden on residents.
Alaska–Not Always as Free
Alaska has a long history with state taxation; in 1949, the first state income tax became law, ten years before they officially became a U.S. state on
January 3, 1959. The first income tax regulations were simple, but still heavily taxing on a state already burdened by the high costs of living. Residents
Embrace the Uncut Beauty
With no more Alaska income tax, the state is more appealing to potential residents and businesses, which is important when you're as isolated as
Alaska. Some may say the cold weather is a deterrence. However, the state's unemployment rate was the lowest in the country from November of 2008
until April of 2014. While everyone from the U.S. mainland struggled to find employment, Alaska's residents weren't as unlucky.
The physical isolation and harsh climate of America's northernmost state drives inflation. Even without an income or sales tax, Alaska still has the one
of the highest cost of living in the country. Despite the inflation on imports, the beauty residents see every day when they walk out their door helps
soften that blow. Alaska's residents don't need to hop on a plane, or book a week at an expensive ski lodge because state parks that offer the best of
the world's attractions free surround

Income Tax Hypothesis
To test the hypothesis of increasing income taxes causes people to find ways to avoid tax or causes citizens to work less, ultimately reducing the tax
rate can be tested at the national level, as well as, the state level. In one state a higher income tax rate could cause people to work more, but when
increasing income taxes is tested at the national level the average might prove the opposite. In order to test the effects of increasing income taxes I
would suggest a data set that is aimed more at the national level. The data set provided by the Internal Revenue Service has tax years from 1996 to
2013, ranging in different adjusted gross incomes of $0 to $10,000,000 or more. With the years provided as well as the different income brackets
the data shows how many people were a part of a certain income level at one point of time and in another point of time when the tax rates can be
increased how many people switched income brackets. Variable such as GDP and the unemployment rate could be factored in, which would allow a
regression to be ran and then one could find out if the increasing tax rates does reduce the tax rate at the national level. ... Show more content on
Helpwriting.net ...
The data set is provided by the United States Census Bureau and it breaks down income taxes as well as individual income tax by different states. Why I
think looking at the effects of increasing income taxes at the state level is the certain states that might not have such a large population such as
Montana or Alaska might have more of an effect on the reduction in the tax rate, and the opposite might prove true for states such as California, or
Texas. The variables in these different states might be different such as the unemployment rate in California might be higher than it is in Montana so
that might have more of an effect on the tax rate. In other words, to look at the whole one must look at the pieces

"Many taxes are regressive, meaning they take a larger share of income from poor and middle–income families than they do from the rich." (2015, 3)
Along with the federal income taxes, Americans pay for state and local taxes also, seven states are excluded from the state taxes. Federal income taxes
take up the majority of what Americans pay in taxes, (accounting) for two–thirds of all taxes paid by Americans. (All in all) forty – three states levy
individual income taxes, forty – one tax wage and salary income, two states exclusively tax dividend and investment income while seven states levy no
state income taxes.
The seven states that have no state income taxes includes: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. (Fact Check, [3])
Federal income tax and local sales taxes would be the only source of taxes these states would need to pay. Unlike the federal income taxes, the state
taxes are regressive meaning that they take more income from low and middle–income families and individuals rather than from the wealthy. Three of
the most regressive states for state income taxes are Washington as number one, Florida in second and Texas ranked number three with the low
–income
families paying twelve and a half percent and the wealthy paying only three percent. Taxes that are truly causing a problem would be the state income
taxes,

Disadvantages Of Income Tax
An income tax is a rate charged on the income of individuals as well as business (companies or other legal entities). Individual income taxes often tax
the total earning of the individual, while corporate tax often taxes net profit of the company. Different tax systems exist, with varying degrees of tax
incidence. Income taxation can be progressive, proportional or regressive. Tax systems define income differently such as inclusion of windfall earnings,
and often allow notional reductions of income such as a reduction based on number of children supported.
Generally the income tax is employed in a progressive manner, meaning as one earns a higher salary a higher proportion (percentage) of his income is
taxed. The idea of a progressive income tax has garnered support from economists and political scientists of many different ideologies, from Adam
Smith in The Wealth of Nations to Karl Marx in The Communist Manifesto. Income taxes used in most countries around the world are characterized by
a progressive scheme, but are not without criticism.
The Disadvantages
The implementation of an income tax system is very complex, especially when trying to regulate the rich and the corporations. So complicated in fact
that an entire industry exists to simply monitor and control the system. The government must enforce every line of the tax code, for example in the US
the IRS requires 90,000 tax accountants. The IRS and tax audit industry might do more for the economy if they were retrained

Income Tax And Its Effect On Total Income
Income tax brings a total revenue of nearly $160 billion. It's the largest source of revenue from tax with a percentage of 47.1% of total tax revenue is
taken up by income tax. However questions must be asked about what if the income tax is changed. The three issues which follow this change are as
follows:
Increasing income tax– effects on total revenue/ tax take
Decreasing the income tax– effect on fairness, equity and revenue
Tax mix– if income tax is increased/ decreased what needs to be decreased/increased
Income level – $Amount of tax
0–18,200$0
18,201– 37,00019 cents for each $ over $18,200
37,001– 80,000$3,572 + 32.5 cents for every $ over $37,000
80,001– 180,00$17,547 + 37 cents for every $ over $80,000
180,001 + $54,547 + 45 cents for every $ over $180,000
Under the Howard government in 2003 there was a major economic booms which lead to high exporting from Australia, including Iron ore and coal.
As a result of the economic boom the corporation tax increased dramatically. The effect of this was for John Howard to decrease the income tax on
five occasions and superannuation concessions were extended. This was John Howard's gift to the taxpaying middle and upper classes. It was clearly
a response – perhaps understandable – to the export boom. The trouble was it had the effect of increasing budget deficits in later years when tax
revenues declined. In particular, budget deficits in the Labor (Gillard) years were increased by Howard's Gift. Even now it has

History of Income Tax
Income tax is a vital source of funds to any government. Money raised by taxing the working population can be used to fund infrastructure
development as well as improving the standard of living in the country. United Kingdom was the first the country to establish a working income tax on
its civilians in 1799. Initially implemented as a temporary source of income to fund the war to beat Napoleon, income tax is now an essential source of
revenue for the government all over the world. This report will look at the significance of income tax in the UK since the late 18th century, through
World War 1 and World War 2, and how it has evolved into the tax system, currently in practice. Income tax still remains as a temporary tax, and must
be ... Show more content on Helpwriting.net ...
Even though Sir Robert Peel was not in favour of income tax, he introduced income tax again in his Budget of 1842 that was considered to be one of
the most famous in the 19th century. Peel taxed people earning above ВЈ150, this resulted in favour of the less wealthy people. Also under custom
duties there were 1200 articles, of which Peel reduced 750 articles on his budget. His taxation plan was on action for a period of three years. But it was
extended for another two years due to an increase in the national expenditure, and also to help the national railways because the railway industry had
less money. When cheaper imports were available, Corn Laws were created which is a tariff on imports. This helped the local farmers as they had a
competitive advantage, but Peel repealed the Corn Laws. This made him loose support of his party. William Galdstone and Benjamin Disraeli had
complete authority during the second half of the 19th century. From the year 1853 to 1866, William Gladstone was elected as the Chancellor of the
Exchequer. Gladstone did not follow Peel's method of income tax policy; instead he wanted to terminate it. He also believed that government spending
should be kept to a minimum level. Gladstone reduced the income tax exemptions from ВЈ150 to ВЈ100; he thought that if more people pay then there
would be a huge pressure form the public to repeal the tax. But in order to fund the Crimean war, Gladstone

Income Tax Is The Most Significant Source Of Income
Income tax is the most significant source of income in Australia and is imposed at the federal level. It is levied from three sources of the individuals:
business income, capital gain and personal income. The taxable income of an individual is assessed in calculated in an abroad sense after applying
allowable deductions against it. The report consists law relating to taxation applicability on funeral income and trading stock. The applicable law has
been explained and the relevant sections and case law have also been discussed in the report. The connectivity between facts of questions and relevant
case laws has been included in the report for a better understanding.
Part A
Task (1)
Answer (a)
Facts of the case: The fee received by RIP Ltd. is payable under 30 days invoice and the income through RIP Finance Pty Ltd who provide finance to
the company is received under instalment repayment plan. The other income is received through the funeral plan in which client make a timely
contribution to meet their funeral cost. In case the amount is not paid them time and completely, the received amount is retained by the company.
Applicable Provisions:
As per section 6(5) of Income Tax assessment act, assessable income comprises income according to ordinary concepts called ordinary income. In
case a person is an Australian resident than the income derived directly or indirectly from all the sources is included in assessable income (Barkoczy,
2016). The facts of case Brent v FC of T71

Federal Income Tax, State Tax And Property Tax
The concept behind federal income tax, state tax, and property tax is........
The ratification of the sixteenth amendment to the constitution established the federal income tax. The federal income tax is a tax the United States
government collects on the wages and income an individual may earn in a year. Each year federal income taxes are collected from millions of
Americans based on a progressive taxing formula. The progressive structure of the formula is designed to ensure that each individual no matter their
income, pays what is considered a fair taxation rate. If an individual earns more, more taxes are levied against the earned wages and income.
States tax their citizens in a similar fashion as the federal government. However, the income tax rates or percentages at the state level are much lower.
States also employ a tax that the federal government does not have. This tax is called a sales tax. The tax on goods and services such as clothing,
automobiles and dining in at a restaurant is regressive. No matter what the income of an individual, the tax remains the same, unlike a progressive
system. There are many states that do not have an income tax. These states get a large proportion of their revenue from sales taxes. States such as
California, New York, and Massachusetts, have some of the highest state income tax and sales taxes in the United States.... Show more content on
Helpwriting.net ...
A county in Texas cannot tax a property in Nevada. The federal government does not levy property taxes, some states do, and all local counties and
municipalities do. Homes, land, and buildings are considered property. Not every individual owns property so not everyone pays property

The Importance Of Personal Income Tax In Texas
I think personal income tax in Texas should not become adopted; I feel it is an immoral thing towards the state. I am against this because taxing a
person from their personal income tax may leave them with less money to pay their bills with more responsibilities. The personal income tax is paid
by people with the money they earn, and it sounds like a corrupted way of taking away their hard earned wages. It may feel as though we pay personal
income tax, but it is not included in our income tax system. Many people still have to pay federal income tax, because it revenues them in governing its
share over three federal income taxes like; Social Security, Medicare and Unemployment.
An Interviewer named Robert Higgs asked, Governor John Kasich his

Tax and Gross Income
TEST 1
Correct Response
Indicate whether each of the items listed below would be included (A) in or excluded (B) from gross income for the 2012 tax year. 1. Alimony| | 2.
Lottery winnings| | 3. Life insurance proceeds received upon the death of a family member| | 4. Child support payments| | 5. Reimbursement of hospital
expenses from a health insurance plan| | 6. Municipal bond interest| | 7. Unemployment compensation| | 8. Scholarships for tuition and books| | 9.
Wages| | 10. Farm income| | 11. Inheritances| |
Which of the following amounts must be included in the gross income of the recipient? a. Welfare payments| | | b. Royalties| | | c. Child support
payments| | | d. Gifts| ... Show more content on Helpwriting.net ...
a. True| | b. False| | |
Interest income received by a cash basis taxpayer is generally reported in the tax year it is received. a. True| | b. False| | |
Interest on U.S. Treasury Bonds is not taxable. a. True| | b. False| | |
Taxpayers must report interest income on Series EE savings bonds as the interest accrues. a. True| | b. False| | |
A gift received for opening a bank account is not taxable income to the recipient. a. True| | b. False| | |
Child support payments are deductible by the spouse making the payments. a. True| | b. False| | |
If a divorce agreement executed in 2012 specifies that a portion of the amount of an alimony payment is contingent upon the status of a child, that
portion is considered to be a child support payment. a. True| | b. False| | |
Correct Response eBook Problem 2–9
Alimony (LO 2.3)
Arlen is required by his divorce agreement to pay alimony of $2,000 a month and child support of $2,000 a month to his ex–wife Jane. What is the tax
treatment of these two payments for Arlen and Jane?
Arlen is entitled to a deduction for .
Jane includes in her income .
Answers: only the alimony payments; only the alimony payments.
Alimony payments are deductible by the individual making the payments, and they are taxable income to the person receiving the payments. For
divorce agreements executed after 1984, alimony payments must meet the following requirements:
1. The payments

Accounting for Income Tax
CHAPTER
Accounting for Income Taxes
OBJECTIVES
After careful study of this chapter, you will be able to: 1. 2. 3. 4. 5. 6. 7. 8. 9. Understand permanent and temporary differences. Explain the conceptual
issues regarding interperiod tax allocation. Record and report deferred tax liabilities. Record and report deferred tax assets. Explain an operating loss
carryback and carryforward. Account for an operating loss carryback. Account for an operating loss carryforward. Apply intraperiod tax allocation.
Classify deferred tax liabilities and assets.
19–1
SYNOPSIS
Overview and Definitions 1. Significant differences normally exist between a company 's pretax financial income and taxable income because
generally accepted accounting ... Show more content on Helpwriting.net ...
A corporation 's pretax financial income may be less than its taxable income if the income tax laws require that revenue received in advance of being
earned must be included in taxable income when received or if the tax laws disallow the deduction of accrued expense until actually paid. The
following will result in temporary differences that generate a deferred tax asset (future deductible amounts) because a corporation 's taxable income
is greater than pretax financial income in the year in which the temporary difference originates. As a result, future taxable income will be less than
future pretax financial income when the item reverses in future years. Method Used for Book Purposes Prepaid rent, interest, royalties, or other
revenue received in advance included in income when earned Gains on sales and leasebacks are reported over the life of the lease contract Warranty
expense, bad debt expense, compensation expense for stock option plans, and losses on inventories in a later

Federal Income Tax Vs. Flat Tax
There has always been a large amount of discussion on the topic of the federal income tax. Specifically, the discussions have revolved around how
exactly the people should be taxed. There are several ways in which tax rates can be determined, and all of them have some form of a strong argument
behind them. The flat tax is the best option as, by nature, it is the most fair. Tax rates are measured by percentages, and when taxes are collected by
percentages, the wealthy are already paying more money than the poor. For example, if a flat tax rate of 20% is in place, and one person has an
annual income of $150,000 while another person has an annual income of $40,000. The person who has the income of $150,000 is paying $30,000 in
taxes while ... Show more content on Helpwriting.net ...
This tax is called sin tax, and it is a tax that is levied on items that are considered hazardous and/or unhealthy, such as cigarettes and alcohol. It is
also proven that the lower class, specifically the lowest quintile in the U.S., spends a higher percentage of their income on alcohol and tobacco than
the upper classes. This is most likely due to the fact that the poorer people actually purchase more alcohol and tobacco than the average person in
the higher classes. The cause of this is most probably early formations of addictions, which quite possibly ruined careers. People who fall under this
category most likely became addicted to alcohol and/or tobacco early on in their lives, which put a financial strain on them earlier on in their careers,
or even before their careers even started, therefore hindering their ability to move up in their jobs or find better

Penalized Income Tax
This paper encapsulates the loopholes and put forwards few strategies that are important for raising fund in the state of Illinois and thus supporting the
low–income individuals. The paper proposes the steps that need to be taken in order to increase revenue and how to invest more in the human capital
as to flourish and improve the society.
INTRODUCTION Education is the most critical factor and important decision for any country and state. Educated individuals make up the country and
the state. Therefore; state of Illinois has also some education related reforms and constitutions in order to help its individuals gain access to education.
The state of Illinois has been unsuccessful in forcing tax duty in a way that relates ... Show more content on Helpwriting.net ...
All uncommon sponsorships should be finished instantly – the answer for Illinois' subsidizing issues isn't about tweaking the equations and making
fixes so that political power between various locales in the state can be incidentally leveled. To settle Illinois' broken instruction framework, money
related influence should be detracted from government officials and extraordinary premiums. For whatever length of time that they coordinate the
framework, it won't be about responsibility – it will be about finances and how we control and distribute our finances. The main genuine arrangement is
to move to another instruction subsidizing framework – one that gives parents expanding control over the stream and conveyance of cash. Illinois
doesn't have to begin without any preparation. Choices as of now exist and have demonstrated successful in different states the

Income Tax Essay
TITLE PAGE INCOME TAX Assessment– Report writing NAME: xxxx xxxx STUDENT NUMBER: xxxxxx HND Accounting TUTOR: xxxx xxxx
DATE: April 2012
ACKNOWLEDGEMENTS.
I would like to thank my tutor, xxxx xxxx for the valuable advice and support given to me to enable me to write my report.
INTRODUCTION.
The purpose of this report is to fully evaluate Katy's situation by providing detailed information about the different issues regarding employment and
self–employment to enable her to determine her employment status.
Question 1
Employment and Self–employment
It is highly important to establish a person's employment status. The key test to be applied when trying to determine a taxpayer's status is concerned
with the nature of ... Show more content on Helpwriting.net ...
Question 2
Income tax assessments are computed for a tax year of assessment. They are based on a taxpayer's total income for the year from all sources and it
does not include income exempt from income tax.
Taxable Persons
Persons resident in the UK for a tax year are charged to income tax on their total income for that year (includes both income arising in the UK and
income arising overseas). There are two exceptions to the rule; some forms of income are fully exempt from income tax; and UK residents whose
permanent home is not in the UK may claim that the income they make overseas should be subject to UK income tax only to the extent that the income
is remitted to the UK. Non–UK residents are allowed to pay income tax on only their UK income. Income tax is payable by: * Adults, on their own
income and on their share of partnership income * Children, if they have sufficient income to pay tax * Trustees, on the income of a trust or settlement
* Personal representatives, on income arising from the estate of a deceased person.
Some individuals and organisations are generally exempt from income tax subject to various restrictions and exemptions. They include: * Companies
(pay corporation tax) * Registered charities and scientific research associations, except on trading income * Registered pension schemes *
Representatives of foreign countries (ambassadors) * Visiting members of foreign

Trust Income Tax Return
Preparation of Trust Income Tax Returns– Why you need to know Fiduciary Accounting Income and required to prepare Trust Income Tax Returns
Some accountants are confused or are unaware of the need to prepare work–papers in order to prepare a proper, accurate and complete Trust Income
Tax Return.
Fiduciary accounting income is trust income calculated on the provisions of the trust document and applicable state Uniform and Principal and Income
Act (The 1997 Uniform Principal and Income Act is a common one)) Fiduciary accounting income determines the financial interests of the income and
remainder beneficiaries of the trust by classifying income, receipts and disbursements as principal or income. The income may be distributed currently
or ... Show more content on Helpwriting.net ...
If DNI exceeds fiduciary accounting income, current distributions in excess of fiduciary accounting income, even though charged to principal for
fiduciary accounting purposes, may carry out taxable income to the beneficiary of the trust. When DNI exceeds income, the trust may be taxed on the
excess, even though the trust distributed all its fiduciary accounting income. If DNI is less than fiduciary accounting income, a portion of the
distributions may be tax–free to the beneficiary.
When the trust document may distribute all or a portion of the income to be distributed currently, the income reference is the fiduciary accounting
income, not the taxable income. The trust is entitled to an income tax deduction for distributions to beneficiaries subject to limitations. Thus, the
fiduciary accounting income impacts the income distribution, and accordingly an integral role in determining the amount of income to be reported by
the beneficiary on his or her income tax return.
Distributable Net Income (DNI) is calculated as follows:
Taxable Income
+ Income distribution deduction
+ Exemption

Texas Income Tax
The state of Texas should not adopt a personal income tax. Any legislator who would propose a bill seeking to establish a state income tax would be
seriously questioned, because a state income tax is currently unconstitutional.
The Texas Constitution was amended in 1993, during Governor William P. Clements' second administration, to prohibit a state incometax. Therefore,
any such proposal would have serious difficulties passing both chambers of the legislature and then it would be subject to ratification through a
statewide referendum. Texas' lack of a state income tax seems to have enhanced its economy vitality with this approach. It also lacks a corporate
income tax, which is not prohibited by the Constitution. Texas is one of seven ... Show more content on Helpwriting.net ...
This could cut the local tax rate – in most school districts now around $1.50 per $100 of property value for maintenance and operations (M&O) – to
roughly 50 cents! The maximum M&O tax rate – also now generally capped at $1.50 – must be reduced by the same percentage as total M&O taxes. If
the income tax cut the property tax rate by 65%, then it would also cut the tax cap by 65%. After the cap was cut, only the voters in a school district
could increase their district's maximum tax rate. The Bullock Amendment then provides that the remaining one–third of income tax revenue could be
spent, but only on education. State income tax payments are deductible from taxable income in calculating federal income taxes. Deductibility shifts
part of the cost of public education to the federal government. The above chart shows that, although the tax would have raised $16.4 billion in 2004,
the net cost to Texas taxpayers would have been only $3.9 billion. Lower property taxes would have returned most of the new revenue ($10.9 billion)
to taxpayers. Uncle Sam would have picked up 10% of the total cost of the income tax ($1.6 billion) through higher deductions on federal tax

"Many taxes are regressive, meaning they take a larger share of income from poor and middle–income families than they do from the rich." (2015, 3)
Along with the federal income taxes, Americans pay for state and local taxes also, seven states are excluded from the state taxes. Federal income taxes
take up the majority of what Americans pay in taxes, calculating for two–thirds of all taxes paid by Americans. Altogether, forty– three states levy
individual income taxes, forty – one tax wage and salary income, two states specifically tax dividend and investment income while seven states levy no
state income taxes.
The seven states that have no state income taxes includes: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. (Fact Check, [3])
Federal income tax and local sales taxes would be the only source of taxes these states would need to pay. Unlike the federal income taxes, the state
taxes are regressive meaning that they take more income from low and middle–income families and individuals rather than from the wealthy. Three of
the most regressive states for state income taxes are Washington as number one, Florida in second and Texas ranked number three with the low
–income
families paying twelve and a half percent and the wealthy paying only three percent. Taxes that are truly causing a problem would be the state income
taxes, which are

The Argument Of Federal Progressive Income Tax
Legal Illusion
The arguments regarding federal progressive income tax has been represented to us through the United States Supreme Court, on the floors of
congress, and in media. The revenue from taxes reached the objective of financing wars from the Civil War through World War II. At the same time
deteriorating the economy with fewer dollars that could be used on imports, exports, and services (Henchman). Today, the United States deficit is
$18,800,241,350,538.12 this is a grand total of 58,405.32 owed by every man, woman, and child (Brown). The legal illusion is presenting the question,
is income tax legal? There are Americans today who believe income tax is not legal and stand by their beliefs in a movement that has cost many
individuals considerably. I am interviewing such a person, his name is Bobby Ray and the history he presented to me was interesting, and has left me
with more questions than answers.
Today, the federal government controls unrestricted means to execute whatsoever the elected official desire, without reverence for the Constitution the
aforementioned vanished gradually. Common people are not knowledgeable that the United States in 1776, did not have personal income tax
sovereign, and in 1913; a perpetual income tax was inflicted upon the people. In actual fact, the Constitution disallowed a direct income tax on there
person. For longer than a century, the leadership endured completely without proceeds from wages. Formerly, the U.S. government performed

Corporate Income Tax
The federal corporate income tax was created in 1909 with a rate of 1% for all businesses who had an income above the line of $5,000. The tax rate
has been as high as 52.8% in 1969 and has been divided into different rates for different income levels. Today, the federal corporate income tax rate is
a uniform rate of 35% for companies who have an income of over $18.3 million. Throughout history, people have debated whether lowering the federal
corporate income tax rate will result in job creation. Although lowering the tax rate might promote job creation within the country instead of job
creation overseas, support more company re–investment in research and development, and allow consumers to save more; lowering the federal
corporate income ... Show more content on Helpwriting.net ...
For example, Ireland lowered its corporate tax rate to 12.5%, which got the economy booming. The country's gross domestic product rate grew at a
rate of around 26.3%. Ireland's low corporate tax rate attracted successful foreign companies to invest in Ireland. For example, American companies
such as Microsoft, Google, and Apple all have subsidiaries in Ireland to take advantage of Ireland's low corporate tax rate (Semeuls). However, the
low corporate tax rate was not the only reason the country had flourished. There were several other factors that helped boost Ireland's economy. One of
them included Ireland joining the European market in the 1990s, which allowed goods to flow freely across the countries in the European Union.
Soon, Ireland became an entry point within Europe and large corporations started to use Ireland to manufacture goods and sell the goods to other
European countries without the attachment of any tariffs. In addition to Ireland joining the European market, Ireland attracted many corporations to its
country because it was primarily an English speaking country. This helped in the ease of communication between the Irish government and the foreign
corporations. Another factor that helped boost Ireland's overall economy was that the Irish government passed a number of educational reforms which
led to a significant number of educated graduates that came out of Irish schools (Semeuls). In the 1990s and 2000s, Ireland became a highly attractive
country for international companies because it acted as an easy trade center within the European Single Market. Therefore, the low corporate tax rates
was not the only reason Ireland's economy boomed, but also a combination of factors, which was very specific to the country of Ireland and that could
not be copied by other countries, all came together to

Earned Income Tax Credit
Earned income tax credit: Who can file: EITC Income Limits, Maximum Credit Amounts and Tax Law Updates| | Here are the 2010 tax year income
limits, maximum EITC amount and the EITC–related tax law changes. You can also access the information for: * Preview of 2011 Tax Year * 2009 Tax
Year * 2008 Tax Year * 2007 Tax YearReturn to EITC Home Page2010 Tax YearEarned Income and adjusted gross income (AGI) must each be less
than: * $43,352 ($48,362 married filing jointly) with three or more qualifying children * $40,363 ($45,373 married filing jointly) with two qualifying
children * $35,535 ($40,545 married filing jointly) with one qualifying child * $13,460 ($18,470 married filing jointly) with no qualifying... Show more
content on Helpwriting.net ...
Who is a qualifying child?A4. Your child is a qualifying child if your child meets all of the following tests: 1. Relationship 2. Age 3.
ResidencyJoint ReturnRelationshipTo be your qualifying child, a child must be your: * Son, daughter, stepchild, eligible foster child, adopted
child or a descendant (for example, your grandchild) of any of them, or * Brother, sister, half brother, half sister, stepbrother, stepsister, or a
descendant of any of them (for example, your niece or nephew).Definitions to clarify the relationship test.Adopted child. An adopted child is
always treated as your own child. The term "adopted child" includes a child who was lawfully placed with you for legal adoption.Eligible Foster
Child. A person is your eligible foster child if the child is placed with you by an authorized placement agency or by judgment, decree, or other order
of any court of competent jurisdiction.AgeYour child must be: 1. Under age 19 at the end of the year and younger than you or your spouse if you file
a joint return, 2. A full–time student under age 24 at the end of the year and younger than you or your spouse if you file a joint return, or 3.
Permanently and totally disabled at any time during the year, regardless of age.Residency TestYour child must have lived with you in the United States
for more than half of the year.See Publications 596 and 501 for

Philippines Income Tax Rates
Philippines Income Tax Rates
Income of residents in Philippines is taxed progressively up to 32%.
Philippines
Income Tax Rate32%
Philippines
Corporate Tax Rate 30%
Philippines
Sales Tax / VAT Rate 12%
Taxable Income Tax Rate
PhP 0 – PhP 10,000: – 5%
PhP 10,000 – PhP 30,000: PhP 500 10%
PhP 30,000 – PhP 70,000: PhP 2,500 15%
PhP 70,000 – PhP 140,000: PhP 8,500 20%
PhP 140,000 – PhP 250,000: PhP 22,500 25%
PhP 250,000 – PhP 500,000: PhP 50,000 30%
Over PhP 500,000: PhP 125,000 ... Show more content on Helpwriting.net ...
Minimum wage earners (MWEs) are exempt from the payment of income tax on their taxable income. Holiday pay, overtime pay, night shift
differential pay and hazard pay received by such MWEs also is exempt. However, an employee who receives/earns additional compensation, such as
commissions, honoraria, fringe benefits, benefits in excess of the non–taxable ceiling of PHP 30,000 taxable allowances and taxable income other than
the exempt remuneration mentioned above do not qualify as an MWE and, therefore, his/her entire earnings are not exempt from income tax. In lieu
of itemized deductions, an individual may elect to use the optional standard deduction (OSD), which may not exceed 40% of the total gross income,
in computing taxable income for the taxable quarter/year. However, once an election is made to use the OSD, it is irrevocable for the taxable year for
which the return is made.
Capital gains – An individual is subject to capital gains tax on the sale of real property at a rate of 6% of the gross sales price or current fair market
value, whichever is higher. An individual is also subject to capital gains tax on the sale of shares not traded on the stock exchange at a rate of 5% of
the net gain not exceeding PHP 100,000, and 10% on the excess.

The Income Tax Law : Australia
INCOME TAX LAW
Name:
MEHRAN MUZAFFAR
Candidate Number:
30111746
Professor:
SATHIASUNDAR VIJAYASANKAR
Date Due: 18 Sep 2014
PART A REQUIRED 1
Introduction
1. Income tax is generally payable annually by residents or non residents who are receiving income in Australia provided the income was derived,
earned or accrued while living in Australia. The returns earned from a business operated partly in or out of the country i.e. Australia are considered to
have accrued in totality from Australia. All the income earned from investments, sale of personal property or any other income is subject totaxation.
(Renton, 2005)
The residents of Australia are basically ... Show more content on Helpwriting.net ...
The income tax assessment ruling IT 2650 of permanent place determination which is also related to case IT 2607under the ATO ID 200/179 puts
more emphasis on the place of resident.
It defines a resident as a person who is domiciled in Australia unless the commissioner is convinced and satisfied that the permanent place is not
Australia as was illustrated in the case of Henderson v Henderson (1965) 1 All E.R.179.
James Cookie works for a foreign company that has been registered in Bermuda that owns and operates passenger cruises across the Pacific Ocean.
He owns a house that he inherited from his parents in Sydney, Australia. By virtue of his inheritance and parentage he is an Australian citizen. But he
has rented the family house to his relatives who live in the house but the furniture and one of the rooms belongs to him. In the current year he spent

only eighty days in the house while most of the other days he was away. For tax purposes he will be considered as a resident as he has no other
permanent home even though the company he works for is foreign based. All his income will be subjected to taxation in Australia

Income Tax

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