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The author of this report is tasked with describing how to compensate and direct the tax collectors of Elbonia to increase tax collections in a way that is effective and compensates the tax collectors commensurate with the work they are performing and the dollars that they are bringing in. The author of this report will offer a few options that will probably help a lot and a lot of them have little to do with what the collectors are doing wrong and more to do with why the tax collections are paltry in the first place.
First, it should be ascertained the real reason why the tax collections are fledgling. A lot of the reasons that tax revenues falter would have to be fixed through policy maneuvers at the governmental level or even just a bit of patience because getting blood from a turnip is just not…
Myers, L., & Mears, C.A. (2013, August 13). Businesses claim Obamacare has forced them to cut employee hours - Investigations. Investigations. Retrieved September 17, 2013, from http://investigations.nbcnews.com/_news
Reilly, P. (2013, August 25). S Corporation SE Avoidance Still A Solid Strategy
Forbes. Information for the World's Business Leaders - Forbes.com. Retrieved September 17, 2013, from http://www.forbes.com/sites/peterjreilly/2013/08/25/s-corporation-se-avoidance-still-a-solid-strategy/
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Louise is aged 50 and single. Since 1994 she has carried on a retail business as a sole trader. Her trading profits as adjusted for tax purposes and after capital allowances, for the year ended 30th April 2009 were $150,000.
The business is carried out from a number of valuable retail outlets, all of which are owned by Louise personally. These units have been acquired over a number of years since 1994 and their market values have increased considerably in recent years.
Apart from her single personal allowance tax credit, Louise is entitled to income tax relief in respect of $10,000, which she pays annually to a evenue approved pension scheme.
Louise's personal living expenses and other financial commitments total $50,000 per annum (including the contribution of $10,000 to the evenue approved pension scheme referred to above).
Louise is considering transferring her business to…
Maertin, James CPA. U.S. Tax Preparation Worldwide. [
http://www.hmrc.gov.uk/menus/aboutmenu.htm "HM Revenue and Customs: About Us." Hmrc.gov.uk. Crown Copyright. 2005-04-18.
tax system of one country with that of another is an exercise fraught with dificulties and ultimately doomed to failure . tax system will never be much more than a reflection of strongly national cultures and forces. discuss this statement in the light of your knowledge of comparative tax system in developing and/or developed countries i
The following pages focus on analyzing the factors of influence on different countries' taxation systems. The paper begins with an introductory section that allows readers understand the point-of-view used in this paper. The following section refers to describing the taxes pand taxation systems used by most countries and their objectives, in order to understand the similarities and differences between these taxation systems. The paper continues with the analysis of several factors that influence countries' tax system design, like cultural factors, technological developments, and natural resources. In order to exemplify this, the taxation…
1. Pasekova, M. et al. (2011). Comparative Analysis of Tax Systems: Some Evidence from CEE Countries. World Academy of Science, Engineering, and Technology. Retrieved February 27, 2012.
2. Greenhouse, S. (2011). Tiny Tax on Financial Trades Gains Advocates. The New York Times. Retrieved February 28, 2012 from http://www.nytimes.com/2011/12/07/business/global/micro-tax-on-financial-trades-gains-advocates.html?_r=1&pagewanted=all .
3. Ross, M. (2004). Does Taxation lead to Representation? Cambridge University Press. Retrieved February 28, 2012.
4. Seto, T. (2008). Four Core Principles of Tax Design System: Introduced and Applied to the Taxation of Multinationals. Loyola Law School. Retrieved February 28, 2012.
Pennsylvania, on the other hand, does not create its budget using this framework; though there are certainly credits, deductions, etc., that are similar to the items listed as tax expenditures in the other states' budgets, this is not the perspective the State of Pennsylvania applies to its budget (Pennsylvania Office of the Budget, 2012). This is perhaps reflective of the increasing criticism the tax expenditure framework or model has received from primarily conservative policy makers and analysts, that see the practice as less straightforward in its appraisal of revenues and expenditures than could be accomplished (Burman, 2003).
Connecticut General Assembly. (2010). Connecticut Tax Expenditure eport. Accessed 7 April 2012. http://www.ctmirror.org/sites/default/files/documents/TaxExpenditureeportMarch2010.pdf
Minnesota Department of evenue. (2012). Tax Expenditure Budget. Accessed 7 April 2012. http://taxes.state.mn.us/legal_policy/Documents/2012_tax_expenditure_links.pdf
Oregon Department of evenue. (2012). A Summary of Oregon Taxes. Accessed 7 April 2012. http://www.oregon.gov/dor/STATS/docs/oregon-taxes-summary-150-800-401.pdf
Pennsylvania Office of the Budget. (2012). Governor's Executive Budget. Accessed 7…
Connecticut General Assembly. (2010). Connecticut Tax Expenditure Report. Accessed 7 April 2012. http://www.ctmirror.org/sites/default/files/documents/TaxExpenditureReportMarch2010.pdf
Minnesota Department of Revenue. (2012). Tax Expenditure Budget. Accessed 7 April 2012. http://taxes.state.mn.us/legal_policy/Documents/2012_tax_expenditure_links.pdf
Oregon Department of Revenue. (2012). A Summary of Oregon Taxes. Accessed 7 April 2012. http://www.oregon.gov/dor/STATS/docs/oregon-taxes-summary-150-800-401.pdf
Pennsylvania Office of the Budget. (2012). Governor's Executive Budget. Accessed 7 April 2012. http://www.portal.state.pa.us/portal/server.pt/community/current_and_proposed_commonwealth_budgets/4566
Sugary sodas contain corn syrup, but the American Agricultural Department subsidizes American farmers for growing corn, and this is one of the reasons that high-fructose corn syrup is so ubiquitous in the food supply. e are taxing corn syrup and subsidizing it at the same time, in other words. "The bigger issue, which the industry neither can nor particularly cares to rebut, is that the product [corn syrup] exists at all. e pump absurd quantities of cash into subsidizing corn (we also have a huge tariff on Brazilian sugar cane, incidentally). Over the past 10 years alone, Congress has appropriated more than $50 billion to encourage farmers to grow the stuff. But people don't want to eat $50 billion in subsidized corn. And if the cobs just sat around developing mold, Congress would cut off the spigot. Enter high fructose corn syrup, which sucks up the subsidies and created a…
Adamy, Jane. "Soda Tax Weighed to Pay for Health Care." The Wall Street Journal. May 12,
Klein, Ezra. "The Problem with Corn Syrup. The American Prospect. 2008.
Taxes on Alcohol and Tobacco:
The alcohol industry is increasingly being considered for an increase in taxes in attempts to help in providing health care insurance to all people. As heath care insurance continues to be a major issue in the United States, policy makers are looking for effective measures to provide health insurance coverage for all. Currently, senators and other policy makers are focusing on the ways to provide health care coverage in order to extend insurance for approximately 50 million uninsured Americans that could total to $1.5 trillion over a decade. Furthermore, these policymakers are examining various ways to lessen expenses and increase taxes including increasing alcohol and tobacco tax to help cater for the expansion. The main reason for the proposed increase in taxes of alcohol and tobacco is that they are among the main contributors to the increasing medical costs. With these proposals and measures, the…
Gravelle, J.G. & Zimmerman, D. (1994, March 8). Cigarette Taxes to Fund Health Care
Reform: An Economic Analysis. Retrieved October 28, 2012, from U. http://www.forces.org/evidence/files/crs-tax.htm
"Higher Taxes on Alcohol Being Considered." (n.d.). Promises Treatment Centers. Retrieved October 28, 2012, from http://www.promises.com/articles/public-policies/higher-taxes-on-alcohol-being-considered/
Tax Memo: Pension Payments
From, Tax Accountant, CPA
You are the president of a corporation owned by yourself and other family members. Your salary from this corporation during the year in question was $48,000. During this same year, $12,000 was also contributed by the corporation to a pension plan held on your behalf. You believe that this contribution should not be considered a part of your taxable income for the year in question. The IRS agent conducting an audit of the year in question believes the pension plan amount should be considered when making a determination of reasonable compensation.
The issues in this case are (1) whether it is proper to include the pension plan in a determination of compensation, and (2) if such inclusion would affect the determination of the compensation amount of any tax liabilities for the corporation or Mr. Jones during the year in question.…
If the decision is made to remain affiliated with the taxpayer, the member should ensure that the error is neither repeated nor perpetuated.
The rules and regulations implemented for tax service providers and other officials working with taxpayer clients are established in order to ensure the stability and ethical values of the position. Taxpayers are very important, as they uphold the economics and financial health of their community and their country. In this regard, it is the obligation of the tax service official to respect both the system and the client by upholding a high level of ethics.
In turn, the taxpayer should assist the preparer in the mission to provide accurate information that is free of errors. In the case of errors, it is important to emphasize that the system does provide for human error. If either the tax preparer or the taxpayer can be shown not to…
In the meantime, you have a normal, functioning economy. Keynes's theory impelled a host of interventionist economic policies during the Great Depression and formed the essence of Roosevelt's New Deal which influenced Britain and other countries in dealing with their own related depressions. The Great Depression in all countries had compelled people to hoard their money causing the economy to stop at a standstill. Keynes's theory urged governments to step in and to encourage public spending, which the government did by both increasing the money supply and buy buying things itself. In this way, government spending is more effective than taxes since raise in taxes will only serve to dissuade people from buying. An attitude which leads to reduced consumerism, more businesses closing, less employment, firing of current workers, and reluctance to engage in discretionary spending.
2. Division of Government Functions
Our federal system divides responsibilities between the various levels…
Tax Deductions: Are Unpaid Loans Tax Deductible?
John loaned his friend Jack $1,000. Jack did not repay the debt and left town. John wants to know if he can claim any tax deduction, and, if so, what is the character of the deduction? However, to answer John's question, one must first find out more information about the nature of the loan. This is critical because there are two broad types of loans and debts: business loans and personal loans. Furthermore, under the correct circumstances, it is possible for people to take tax deductions for certain types of business loans and personal loans. Knowing whether John made Jack a loan from his personal money or from his business money is the crucial first step in determining which, if any, Internal evenue Service (IS) regulations or tax laws will permit John to deduct the unpaid debt.
If John is a business owner…
Bailey, A.C. (2014). Unpaid personal loans can reduce your tax bill. Retrieved April 12, 2014
from MyTaxHQ website: http://mytaxhq.com/unpaid-personal-loans-can-reduce-your-tax-bill/
Fishman, S. (2013, June 7). Bad loans to friends and family may be tax deductible. Retrieved April 11, 2014 from Inman News website: http://www.inman.com/2013/06/07/bad-loans-to-friends-and-family-may-be-tax-deductible/
Internal Revenue Service. (2013, December 12). Topic 453- Bad debt deduction. Retrieved April 12, 2014 from IRS website: http://www.irs.gov/taxtopics/tc453.html
eaton also adds that low and moderate income people tend to spend money on goods and services that are more likely to result directly in jobs and incomes in the community (the spending continues multiplying on a secondary or tertiary basis). Higher income people spend in a way that contributes to "leakage" to their local economy by taking trips to buying non-local goods and services.
The implication of eaton's article is that tax cuts should be directed at low and moderate income people to stimulate the economy. Perhaps, from a strictly MPC point-of-view, this is correct. but, high income people also invest which stimulates the economy and this should have been explored as well.
51% Say Cut Everybody's Taxes to Stimulate the Economy (2009, June 11). Rasmussen Reports. http://www.rasmussenreports.com/public_content/business/economic_stimulus_package/june_2009/51_say_cut_everybody_s_taxes_to_stimulate_the_economy
eaton, R. (2003) the Idolatry of ideology Alternatives Magazine. http://www.alternativesmagazine.com/25/beaton.html
51% Say Cut Everybody's Taxes to Stimulate the Economy (2009, June 11). Rasmussen Reports. http://www.rasmussenreports.com/public_content/business/economic_stimulus_package/june_2009/51_say_cut_everybody_s_taxes_to_stimulate_the_economy
Beaton, R. (2003) the Idolatry of ideology Alternatives Magazine. http://www.alternativesmagazine.com/25/beaton.html
Tax Returns for C Corporation and Partnerships
Tasty Treats and Beverages is a registered company in the United States. The company was incorporated in 2004, and operates under the C Corporation for the tax purpose. A C-corporation refers as a business entity subject to the federal income tax. A company operating under the C Corporation can enjoy host of tax credit that can assist it to enjoy a tax reduction that the company has to pay to the federal government. This paper uses the excerpt from the Tasty Treats & Beverages, Inc. annual income statement to prepare the tax return for the company.(See Appendix 1).
Tasty Treats & Beverages, Inc.
Income Statement ($)
For year ended December 31, 2013
Revenue from sales
Income before taxes
Federal income tax expense
Net income after taxes
As being revealed in the company statement of income data,…
ill ignoring any pollution problem be beneficial to the community? Most businessmen would probably answer that question with a negative, but does that mean they feel compelled to do anything about the problem, even if their corporation was the one that caused it. Currently the answer would be no, but if they were going to be penalized for not doing so, and that penalty was coupled with an incentive for accomplishing the objective, then it would probably be a no-brainer, even based on the businessman's viewpoint.
Peter Coy states; "A few polluters that cannot easily reduce emissions will pay a substantial cost, but those with the technology to cut emissions cheaply will have a far greater incentive to do so than they would have under traditional regulation." The same technology used to accomplish a cleanup, can also be used for other reasons, which is an additional benefit to the corporations.…
Coy, P. (1997) Clean Air in an Era of Cheap Oil, Businessweek, November 3, 1997, pg 144
Hoerner, J.A., (2005) Tax Waste, Not Work, http://www.tompaine.com/articles/tax_waste_not_work.php , Accessed Sept 15, 2007
Kripke, G., Dunkiel, B., (1998) Taxing the Environment: Corporate tax Breaks to Promote Environmental Destruction, Multinational Monitor, Vol. 19, Number 9, pp 9-15
Morris, D., (2005) Restructuring Minnesota's Tax System: Taxing Pollution Rather Than Work and Investment, Testimony before the Minnesota House of Representatives Committee on Taxes, February 23, 1995, http://www.ilsr.org/ecotax/gtaxtest.html , Accessed Sept 15, 2007
In addition, the estimation of seventy-seven thousand individuals that would be able to receive an additional refund from the tax credit suggests that it could actually cost the state a substantial amount of money to operate this program. These students would not only pay no taxes, but would actually receive money from the state -- a minimally employed student that owed no income tax to begin with could actually receive a refund of eight hundred dollars (forty percent of two-thousand) or more. Clearly, there would be a major impact o the overall state budget from the cost of this program. Though a billion dollars doesn't go as far as it used to, it is still a substantial portion of the state's total sixty-three billion dollar budget (POB, 2012). Though the money saved or sent out to individual taxpayers through this tax credit would most likely be used to make purchases…
PASDC. (2012). Quick facts. Pennsylvania State Data Center. Accessed 3 March 2012. http://pasdc.hbg.psu.edu/sdc/pasdc_files/pastats/PaFacts_2011.pdf
POB. (2012). Budget in Brief. Pennsylvania Office of the Budget. Accessed 3 March 2012. http://www.budget.state.pa.us/portal/server.pt/community/current_and_proposed_commonwealth_budgets/4566
This means that they should have alternative sales taxes imposed. These small increases will result in school districts receiving more income. As the legislature can avoid making dramatic cuts backs from the general fund and will have another source of revenues. This will improve their ability to provide educators with the resources they need. (Balu, 2011)
A good example of this can be seen with a study that was conducted by Balu (2011). She found that this formula has been successful in helping to ensure that school districts are receiving additional financing. Commenting about these shifts, she concluded that this will prevent sudden decreases by introducing another form of revenues for education with her saying, "Districts in states that shifted their tax base for education toward sales and income taxes, received more than 60% of their revenues from the state. They experienced an increase in revenue stability after finance equalization…
Balu, R. (2011). Did School Finance Equalization Increase Revenue Instability. SREE. Retrieved from: https://www.sree.org/conferences/2011/program/downloads/abstracts/159.pdf
Crawford, C. (2010). Property Taxes in New Jersey. Northeast Business and Economic Association.
Goodspeed, T. (n.d.). The Relationship Between State Income Taxes and Local Property Taxes. National Tax Journal, 2 (2), 219 -- 236.
Toutkoushian, R. (2008). The Impacts of School Funding. Journal of Education Finance, 33 (4), 353 -- 379.
Rich Should Be Taxed More
In every free market economy, there is a particular tax system which is implemented and has to be followed by the citizens of the country but every tax system comes with its advantages and disadvantages. The taxes that are implemented may be in the form of direct taxes such as the earnings of an individual, inheritance and other such incomes, while the indirect tax is levied on the purchases, sales, etc.
The regressive tax system is whereby the amount of tax that a person has to pay decreases as the income of the individual increases. This is a burden on the poor in the society who are crushed under the burden of the taxes because the tax payments take up most of their earnings as a result. A progressive tax system on the other hand implies that a person has to pay more in taxes…
Mccaffery, Edward J. Fair not flat: How to make the tax system better and simpler. University of Chicago Press, 2002.
Messere, Ken. The Tax System in Industrialized Countries. Oxford University Press, 1998.
Yang, Ming Yu. "The applicability of the progressive tax from the perspective of contribution theory." International Journal of Management, 2003.
.....regret to inform you that your required tax payment is now more than 90 days overdue. You are no doubt well aware of the fact that the State of California is dependent upon timely payment of tax revenue to function. Taxes pay for the schools, social support, roads, bridges, and basic functioning of the State of California. All Californians benefit from these services. Taxes are also necessary to ensure that government employees are paid on time for the hard work that they devote to serving the people of the state. California is a state beloved by all who live there, and to keep the state healthy, clean, and well-educated, taxes are necessary.
Regardless of the sum of money you owe, it is an essential part of the state budget. No sum of money is trivial in the context of the heavy demands placed upon California to serve its citizens. Every…
Globalization and Taxes
Competition for Taxes
One of the most difficult issues regarding the state regulation of their tax relations in regard to international business is the presence of various "tax havens" that are present across the globe in today's modern economy. According to some estimates, as much as half of the world's stock of money either resides in tax havens or passes through them (Palan, 2002). The term tax haven has been widely used since the 1950s; yet there is no consensus as to what it means (Palan, Murphy, & Chavagneux, 2010). The influential U.S. Treasury's Gordon eport concluded: there is no single, clear, objective test which permits the identification of a country as a tax haven . Corporations and private businesses now have a plethora of ways to reduce their tax liabilities. Globalization has exacerbated this problem even further. The mere presence of these various tax shelters…
Bhagwati, J. (2004). In Defense of Globalization. New York: Oxford University Press.
Dyreng, S., Lindsey, B., & Thornock, J. (2011, April 30). Exploring the Role Delaware Plays as a Domestic Tax Haven. Retrieved from Social Science Research Network: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1737937
Friedman, T. (2005). The World is Flat. New York: Farrar, Straus, and Giroux.
Kanter, J. (2015, October 21). E.U. Orders 2 Nations to Recover Taxes From Starbucks and Fiat. Retrieved from The New York Times: http://www.nytimes.com/2015/10/22/business/international/starbucks-fiat-eu-tax-netherlands-luxembourg.html?_r=0
There are ten Fraud Detection Centers across the United States, and these are meant to detect refund fraud and to identify prevention measures. Each of these offices has a Resident Agent in Charge to direct, monitor, and coordinate operations supporting electronic and paper tax filing, and each Center performs activities that include educating Submission Processing Center and Customer Service Center personnel on fraud awareness and detection.
Criminal investigation in the agency started shortly after the Revenue Act of 1913 was passed, and that act imposed a modest tax of 1% on net incomes of individuals, estates, trusts, and corporations. In addition, another tax, or surtax, graduated from 1 to 6%, was applied to income exceeding $20,000. Over time, many laws have been passed that have changed the rates and other aspects of revenue assessment. Tax evasion was noted as early as 1919, when many serious allegations concerning alleged tax frauds…
Baker, Jeremy and Rebecca Young. "False Statements and False Claims." American Criminal Law Review, Volume 42, Issue 2 (2005), 427.
Berlau, John. "Return of the 'Audits from Hell': IRS Commissioner Charles Rossotti Once Pledged to Champion Taxpayer Rights, but Instead Americans Find Themselves Facing the Resurrection of Random Audits." Insight on the News, Volume 18, Issue 27 (July 29, 2002), 15.
Cochran, Amanda a. "Evidence Handed to the IRS Criminal Division on a 'Civil' Platter: Constitutional Infringements on Taxpayers." Journal of Criminal Law and Criminology, Volume 91, Issue 3 (2001), 699.
Craig Jr., James L. "Guidance on Financial Status Audits: It's Not Just for CPAs." The CPA Journal (2007), http://www.nysscpa.org/cpajournal/1996/0796/features/Guida.htm .
The author of this report has been asked to review a situation where a corporation has received unwanted attention from the Internal Revenue Service (IRS) for a few reasons. Among those reasons are income that is deigned to be a de facto dividend, stock redemptions that are improper and a rental loss situation. The goal across the board is to devise a compensation and tax approach that will prevent the IRS from claiming tax avoidance or other such things as well as a plan that limits tax implications and higher costs for the firm. While it is sometimes rankling and maddening when the IRS makes such moves, their reaction is a little predictable given the facts involved.
The IRS taking issue with the compensation is a little predictable, and for a few reasons. First, it is presumed by the author of this response that the company…
To minimize the impact on business and property owners, the tax should be one that they can apply at the consumer level. An excise tax raises the cost of goods, whereas a sales tax does the same thing but forces the consumer to pay. A property sales tax would already be applied at the consumer level.
As a citizen, I will not necessary see benefit from these taxes -- it depends on what the taxes are used for. ith regards to paying other taxes, I am only concerned with my total tax burden. Shifting taxes from one type to another, if it for me is tax neutral, is irrelevant. I would prefer that my taxes are reduced overall, and if these taxes facilitate that, then I would prefer them.
IRS. (2008). Business taxes. Internal Revenue Service. Retrieved February 11, 2010 from http://www.irs.gov/businesses/small/article/0,,id=98966,00.html
IRS. (2008). Business taxes. Internal Revenue Service. Retrieved February 11, 2010 from http://www.irs.gov/businesses/small/article/0,,id=98966,00.html
Compare the long-term tax benefits and advantages of each type of reorganization, and recommend the type of reorganization that will be most beneficial to the client
Reorganization takes into account any company restructuring that may be tax-free under the United States law section 386. It encompasses the notion of acquiring new entities in a manner that all financial transactions are non-taxable. There are certain general requirements that have to be met in order to qualify. To begin with, it must be a plan of reorganization, must have a sound and fitting business purpose, and must satisfy continuity of interest as well as continuity of business enterprise examinations. There are different forms of reorganization that include type A, B, C, and D. reorganizations (Macabacus, 2017). To begin with, type A reorganization takes into account mergers and consolidations. The advantages of this reorganization type is that it is flexible, funds and other…
Alacare Home Health Services Inc., Petitioner vs. Commissioner of Internal evenue
The comparison of American Institute of CPAs' (AICPA) Statements on Tax Standards and the Treasury Department Circular 230 rules to practice.
Alacare Home Health Services, Inc., Petitioner vs. Commissioner of Internal evenue espondent
In the addressed case, the petitioner was from Birmingham, Alabama, and was a Medicare-certified home health care agency which uses accrual method of accounting. As admitted by the respondent, the figure for office expenses in 1996 was overstated and should've been $247,413 and not $259,062 (Tax Attorney esources - Alacare Home Health Services, Inc. - Page 7 - U.S. Tax Court Opinions, 2001). In 1995, the computer expenses amount had also been overstated due to an error in valuing depreciation and so, instead of $104,806, $101,806 had been recorded. A petition was formed in 1982 and from 1995-1996, the petitioner treated the cost of capital…
(2001). Laws - Legal Research. Tax Attorney Resources - Alacare Home Health Services, Inc. - Page 7 - U.S. Tax Court Opinions. Retrieved June 7, 2016, from http://law.onecle.com/tax/2001/alacare.tcm.wpd07.html
(2001). Leagle.com -- A leading provider of copies of primary case law from all Federal courts and all State higher courts. ALACARE HOME HEALTH SERVICES, INC. v. COMMISSIONER -- Leagle.com. Retrieved June 7, 2016, from http://www.leagle.com/decision/2001187581ertcm1794_11728/ALACARE%20HOME%20HEALTH%20SERVICES,%20INC.%20v.%20COMMISSIONER
Schreiber Jr. (2014). The Tax Adviser. An Overview of AICPA and IRS Rules of Practice. Retrieved June 7, 2016, from http://www.thetaxadviser.com/issues/2014/feb/tpr-feb2014.html
Tax Planning -- Employer (II of II)
Tax Planning - Employer
The marketplace that businesses operate in has become more and more globalized and international in nature, not to mention extremely competitive. This particular report will focus on the employer and their tax implications when it comes to operating and/or headquartering in one or more countries around the world. The prior report focused on the employee. While the implications for the employee are complicated and diverse enough, they become even more complicated when speaking of the employer, and for a number of reasons.
Just as there were a number of considerations relevant to the employee and their tax treatment, there are a number of tax considerations that USCo will need to consider for themselves and they are as follows:
The actual headquarters location (nation, state/province and county/city)
The actual locations outside of that home country (or state and city)…
Bachmann, H. (2009, August 20). Can Swiss Banks Thrive After the UBS-U.S. Deal?
Retrieved December 3, 2014, from http://content.time.com/time/business/article/0,8599,1917648,00.html
Canada. (2014, December 3). Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.)).
Retrieved December 3, 2014, from http://laws.justice.gc.ca/eng/acts/I-3.3/
Tax Equity and Fairness
Taxes on property are also known as ad valorem tax imposed on the real value of the estate or other assets that an individual owns. The local government imposes these property taxes and charges are on a recurring basis (Mikesell, 2014). For example, a homeowner either pays their taxes on a yearly basis or gives a monthly fee as part of the mortgage payments. It is worth noting that these taxes are subject to fluctuation basing on the jurisdiction assessment of the property's worth by looking at factors like its market value, condition, location and the changes to the apportioned amount to the various tax recipients. For instance, when residents of a given community vote to have the millage rate increased for their school system, this affects the tax rate on homeowners. Therefore, the tax levied is increased on their properties, and the reverse applies; when…
Laureate Education (Producer). (2008). Budget management functions: Revenue [Video file]. Retrieved from https://class.waldenu.edu
Mikesell, J. L. (2014). Fiscal Administration: Analysis And Applications For The Public Sector (9th ed.). Boston, MA: Wadsworth
Tax Avoidance & Firm Growth
What follows in the next few pages is a review of whether there is a correlation between tax avoidance with corporations and firm growth. Indeed, looking at the literature reveals that the evidence is mixed but that the overall answer is a condition "yes," that there can indeed be a link between tax avoidance and firm growth. To explain the conditional nature of the answer garnered, one can look to the work of Desai, Foley and Hines (2006) when they assert that "firms with sizable foreign operations benefit the most from using tax havens, an effect that can be evaluated by using foreign economic growth rates as instruments for firm-level growth of foreign investment outside of tax havens" (Desai, Foley & Hines, 2006). They further state that "one percent greater sales and investment growth in nearby non-haven countries is associated with a 1.5 to 2%…
Chang, S. (2012). The Great Debt Controversy in the U.S. And Beyond. SERI
Quarterly, 5(2), 50-62.
Desai, M.A., & Dharmapala, D. (2006). Corporate tax avoidance and high-powered incentives. Journal Of Financial Economics, 79(1), 145-179.
Federal Government Tax
The main source of government income is taxes. The government taxes various organizations in the economy differently to ensure that adequate revenue is collected. Corporate use loopholes in the tax system to reduce the tax paid to the federal government. The government should eliminate these loopholes to improve tax collection. Some taxes such as gift and estate tax as they are counter productive. Changes made to the federal tax collection systems will increase the tax collected by increasing compliance.
esearch the most common tax loopholes used by corporations and partnership to avoid paying federal income tax. Discuss two (2) loopholes identified and what strategies you would recommend to the federal government for closing these loopholes.
The federal government gets most of its revenue from collection of tax used to fund most of the expenditure. The government should ensure that the tax collection avenues are free from loopholes…
Gans, J. (2011). Principles of economics. South Melbourne, Vic: Cengage Learning.
Ganghof, S. (2006). The politics of income taxation: A comparative analysis. Colchester: ECPR Press.
Conklin, D.W., St.-Hilaire, F., & Institute for Research on Public Policy. (1990). Provincial tax reforms: Options and opportunities. Halifax, N.S: Institute for Research on Public Policy = Institut de recherches politiques.
Pechman, J.A. (1987). Federal tax policy. Washington, D.C: Brookings Institution.
Internal evenue Service's Use of Circular 230 to egulate Tax Preparers
An oft repeated maxim in American history states sardonically that "in this world nothing can be said to be certain, except for death and taxes" (Franklin, 1840), and under the modern statutes of federal tax code that observation has never been more prescient. With taxes imposed by local, state and federal governments throughout the entirety of our natural lives, Americans living in 2012 may be facing the most extensive excises ever levied by one nation on its citizenry. Considering the dreaded annual income tax, the sales taxes added to the cost of consumer goods, and property taxes attached to home valuations, the average person is compelled to contribute thousands of dollars annually to support the revenue shortages of a mismanaged federal government. Even the choice to gift a sum of money to your child, spouse or lifelong friend, perhaps…
Franklin, B. (1840). Letter to m. le roy on the affairs of france. In J. Sparks (Ed.), The works of Benjamin Franklin: containing several political and historical tracts not included in any
former edition, and many letters, official and private, not hitherto published; with notes and a life of the author (Vol. 10th). Retrieved from http://books.google.com/books?id=weTtwiiGUYQC&printsec=frontcover&source=gbs_
Fraud in income tax return preparation. Hearing before the Subcommittee on Oversight of the Committee on Ways and Means, 109th Cong. 1 (2005).
Expenditure Revenue Analysis
NY PA Expenditure
hile governmental entities must strive to serve the public good to the best of their abilities, public administrators must navigate an environment of extreme complexity in which the allocated capital funds are put to their best use. The administration of the capital budgeting process can be extremely time consuming, confusing, and expensive. This research will discuss capital budgeting policies and procedures in the states of New York as well as Pennsylvania for the fiscal years of 2009 and 2010. These governmental entities generate funds through taxes, public debt, inter-governmental transfers and various businesses owned by the government and capital projects represent a significant portion of the state's responsibilities. ith the use of a prepared financial analysis, this paper will describe current practices and examine how debt ratio affects borrowing and investment opportunities for the two governmental entities.
Much of public spending on capital projects…
Aschauer, D. (1989). Does public capital crowd out private capital? Journal of Monetary Economics, 171-188.
Borio, C., & Zhu, H. (2011). Capital regulation, risk-taking and monetary policy: A missing link in the transmission mechanism? Journal of Financial Stability, In Press.
Bronzini, R. (2009). Determinants of long-run regional productivity with geographical spillovers: The role of R&D, human capital and public infrastructure. Region Science and Urban Economics, 187-199.
Butler, A. (2009). Corruption, Political Connections, and Municipal Finance. The Review of Financial Studies, 2873-2905.
The Federal Tax system that is managed by the Internal Revenue Service (IRS) contains many complicated rules and regulations that presents many problems and issue for taxpayers wishing to abide by these laws. Itemized deductions is one method of self-reporting that taxpayers choose to use to file their returns. The purpose of this essay is to examine the use of itemized deductions on federal income tax returns. This investigation seeks to understand the history of this application while also evaluating the complex nature of the qualities that determine the appropriateness of this selection. This essay will also examine the effectiveness of itemized deductions as part of the larger component of income tax returns. The essay will conclude by highlighting certain examples where IRS audits were started because of misuse of the itemized deduction.
History of the Itemized Deduction
According to the Internal Revenue Service's web site its history…
The Internal Revenue Service Tax Code. Viewed 19 Feb, 2013, Retrieved from http://www.irs.gov/publications/p17/ch20.html#d0e67864
Viard, A. (2013). The myth of the limits on itemized deductions. The American, January 9, 2013. Retrieved from http://www.aei.org/article/economics/fiscal-policy/taxes/the-myth- of-the-limits-on-itemized-deductions/
Wood, R. (2013). Shh, Home Office and other IRS Audit Trigger Secrets. Forbes, 25 Jan 2013. Retrieved from http://www.forbes.com/sites/robertwood/2013/01/25/shhh-home-office - and-other-irs-audit-trigger-secrets/
Income Tax Deduction
Taxes have existed in the United States for all of its existence but they took on many forms prior to the modern income tax. The income tax was not finalized and permanently ensconced in the United States law until the 1910's. The tax rates, at its normal levels, have been adjusted upwards and downwards depending on the economic cycles with the most recently developments being the "Bush Tax Cuts" of the 2000's and the recent tax spikes under the Obama Administration. While income taxes affect some more than others, nearly all people are affected based on the assets/income they possess and earn as well as the familial structure they maintain.
Common Tax Deductions
As noted in the introduction, familial status and assets/income are far and away the biggest determinants on how much tax is paid, if any. Indeed, some people actually get money from the government and…
IRS. (2014, February 28). Internal Revenue Service. 401(k) Plans. Retrieved February 28, 2014, from http://www.irs.gov/Retirement-Plans/401 (k)-Plans
IRS. (2014, February 28). The Health Insurance Marketplace. The Health Insurance Marketplace. Retrieved February 28, 2014, from http://www.irs.gov/uac/Newsroom/The-Health-Insurance-Marketplace
IRS. (2014, February 28). SOI Tax Stats - S Corporation Statistics. SOI Tax Stats - S Corporation Statistics. Retrieved February 28, 2014, from http://www.irs.gov/uac/SOI-Tax-Stats-S-Corporation-Statistics
IRS. (2014, February 28). EP Abusive Tax Transactions - S Corporation ESOP Abuse of Delayed Effective Date for Section 409(p). EP Abusive Tax Transactions - S Corporation ESOP Abuse of Delayed Effective Date for Section 409(p). Retrieved February 28, 2014, from http://www.irs.gov/Retirement-Plans/EP-Abusive-Tax-Transactions-S-Corporation-ESOP-Abuse-of-Delayed-Effective-Date-for-Section-409 (p)
Tax Research Memo
Personal Injury winning treatment and other issues research
John Smith tax issues
Treatment for purposes of Federal Tax Income of $300,000 fee received out of the amount awarded by Jury.
Applicable Law:Any winnings in a personal injury lawsuit that cover the treatment of physical injuries are not taxable except for attorney fees which are taxable. IRC SEC 104(a)(2).Taxability also depends upon the place of residence of the taxpayer.
$300,000 received by John Smith as fees from jury award is taxable for federal tax income purposes.
Treatment for purposes of Federal Tax Income of $25,000 expenses paid upfront and received out of the amount awarded by Jury.
Applicable Law: Any winnings in a personal injury lawsuit that cover the treatment of physical injuries are not taxable except for attorney fees which are taxable. IRC Sec 104(a)(2).Any expenses can be claimed as a deduction.Taxability…
Capital Gains Tax in Australia
Capital gains tax refers to a type of tax levied on capital gains incurred by organizations or individuals. The capital gains refer to the profits that an organization or individual selling a capital asset obtains through selling an asset at a price higher than the original price. In many countries, the amount of capital gains tax takes into consideration the type of investment and the holding period of the asset. Australian capital gains tax takes a proportion of all achieved capital gains. Capital gains are not separate tax but part of the income tax on individuals and corporations upon disposing of capital assets. Australian capital gains tax exempts personal properties such as home, car, and furniture. Australian residents in any part of the world are subject to capital gains tax.
Issue 1. Moodly's Conversion of her main residence.
Moodly being a childcare worker, wishes to…
OECD Tax policy studies. 2006. Taxation of Capital Gains of Individuals: Policy
Considerations and Approaches. No.14. Paris: OECD Publishing.
Pricewaterhouse Coopers. 2006. Mergers and acquisition: A global Tax Guide. New Jersey:
John Wiley and Sons Inc.
global tax treaties, UN model and OECD model with the view of analyzing their consideration towards rights to capital and tax income. By throwing light on differences and similarities among the models, the fundamental logic of each of them is explained. The article explains the prospecting policies of consideration when tax treaties are to be signed. It is because there is strong need to enforce a flexible but more aggressive strategy. The Section 1 of the article discusses rights about tax earnings through immovable property. The Section 2 is about business profits. The Section 3 throws light upon income from investment channels like royalties, interests and dividends. The Section 4 describes the capital gains. The conclusion of the article is given in Section 5.
ight to tax income from immovable property
Because of well-known significant relationship between the country of source of the income and the source of income itself,…
Bin Yang, A Comparative Study on the Rules and Administration of the International Taxation System (China Tax Publishing House, 2003).
Bin Yang, International Taxation (Fudan University Press, 2004).
Commentaries on Paragraph 3, Article 7 of the OECD model.
Jin Zhi Liu (translator), Commentaries of UN model Tax Convention between Developed and Developing Countries (China Financial & Economic Publishing House, 1996) 56.
professional VAT (value added tax) advice for the managing director of the Grape Limited. The Grape Limited is a U.S. multinational company and decides to incorporate new companies that provide supply management services, management company, manufacturing company and marketing companies. The management company will deliver supply management services to foreign services providers. On the other hand, the manufacturing company will focus on the electronic parts, and marketing company will deliver marketing services for the parts manufactured by the manufacturing company.
The VAT (value-added tax) is a government levy on any goods or services produced in the epublic of Ireland. The first condition that must be fulfilled before Grape Limited demands for the VAT numbers is to incorporate its businesses in the epublic of Ireland. After the company registrations, the next step is to apply for the VAT number. To apply for the VAT registration number in the epublic…
Chattered Accountant (2014). Form VAT 56A. Ireland.
Department of Finance (2015).Summary of 2015 Budget Measures Policy Changes. Ireland.
O'Brien, C. (2014). Personal Tax. KPMG Ireland .
KPMG (2009). Ireland: Country Fact File. KPMG International.
Furthermore, capital gains normally tend to be spread across a wider income scale than many believe. According to the IRS Individual Income Tax Returns, Preliminary Data, 1992 federal income tax returns, 55% of returns claiming capital gains were from incomes of $50,000 or less, including a capital gain (Thorning, 1995). hat this information appears to come down to is that the capital gains tax affects almost everyone, which happens to affect the economy in general.
Tax Act of 2011
ith some of the huge advantages that have been back loaded, the Tax Relief Act of 2001 displays itself as more of a tax odyssey than what would be considered a tax act. The most positive of those that are called our planners really just provide estate tax repeal which is a 50/50 possibility of essentially being executed. Taxpayers and planners similarly are left with the troublesome query, "hat is the…
Gordon, M. (2209). Stock Market Looks More Like Face of America, Survey Says. The Associated Press Business News, 25.
John Freear and William E. Wetzel, J. (2009). Who Bankrolls High-Tech Entrepreneurs? American Council for Capital Formation Center for Policy Research,, 101.
Michael J. Graetz. (2010). Distributional Analysis of Tax Policy. Discovery and the Capitalist Process, 105-121.
Robert Gillingham, a. J. (2007). The Effect of Marginal Tax Rates on Capital Gains Revenue,. National Tax Journal, 123.
The determination for marketable security with respect to disproportionate distribution is accomplished by reducing the amount of marketable securities that is treated as money using the following steps:
1. The excess of the partner's share of net gain that would be recognized if all securities of the type distributed held by the partnership immediately before the transaction were sold at fair market value over
2. The partner's share of gain that would be taken into account if the securities held by the partnership immediately after the transaction were sold.
While the term "marketable securities" includes interests in actively traded precious metals and other financial instruments that are set forth in the applicable IRC code and regulations, there are some exceptions to this provision, though, and it does not apply in three specific situations as noted below:
1. Contributed by partner. If the security itself was contributed to the partnership…
Thorndike, Joseph J. "The IRS Is Hiding Its History." The ashington Times.
December 19, 1997, p. A23. February 18, 2008. http://www.taxhistory.org/thp/readings.nsf/cf7c9c870b600b9585256df80075b9dd/9de7fcd59915a3be85256e430079327d?OpenDocument
After 9/11, the Federal Reserve Bank, then led by Alan Greenspan, used monetary policy reduced the interest rate, or the rate that consumers must pay to borrow money. This did encourage individuals to spend more. However, it is still debatable if this was the most vital component in extricating America from the throws of economic recession. Government spending, or fiscal as opposed to monetary policy, is often seen as a more direct and superior way to rapidly change economic conditions. Fiscal policy was required to stimulate America's recovery from the Great Depression, according to conventional wisdom, although some still argue that it was the Hoover administration's monetary policy that was ineffective, not that monetary policy was ineffective altogether.
But most economists believe that, to get the…
Heakal, Reem. "What is fiscal policy?" Investopedia. October 22, 2008. http://www.investopedia.com/articles/04/051904.asp
Fairness does matter when creating a tax system. In terms of a consumption tax, the poor often consume more than the rich, at least in terms of a percentage of their income. While for a wealthy individual, much of his income can be locked up in assets, making money off of money, for a poor individual, the bulk of his or her income is devoted to buying necessary goods, including rent and food. The consumption tax taxes everyone equally on the surface, regardless of how someone has benefited from the economic system of a particular society, and actually favors those who can allocate their income to sectors of the economy that are not taxed (such as investments, which are not technically consumption).
A flat tax, where everyone pays the same amount, has similar problems in terms of allocating wealth. 15% of a poor person's income, a person who must pay for his or her rent, food, and necessities out of his or her weekly paycheck, means more to that individual than 15% of an income where much of that income can be devoted to investments and luxuries. While not as unfair as a consumption tax as investment income is also taxed, a flat tax is still unfair, and finding the right percentage to finance government operations yet not to be prohibitively costly for the poorest members of society is a difficult balance to strike. The only good thing about the flat tax is its simplicity, as along with the consumption tax as it requires less bureaucracy to enforce. Bureaucracy is expensive as well as frustrating (as anyone who has ever had to fill out a tax form beyond the standard EZ-file well knows!).
Foremost, when they occur, they generate massive financial setbacks for the institution implementing them as they generally require a large sum of money. "It is difficult to properly handle investments in public budgets. The rewards are spread out over an extended period of time while the cost or the pain of investing is immediate. That makes if difficult to finance public investments" (Penner, 2008).
For the state and local governments to be able to fund their investments, they should organize their incomes into two categories: current operating capital and capital component. A simple accounting method would help them benefit immediately from the investment. In this order of ideas, given that the investment is amortized and the amortization is registered as part of operating expenses, the users of the investments would immediately benefit from it, and also pay it at the same time (Penner, 2008).
Another means to deal with the…
Penner, R.G., June 10, 2008, Budgeting for Capital Investment, Statement before the House of Representatives Committee on Transportation and Infrastructure
Rueben, K., McGuire, T., Kellam, S., October 2007, Navigating State and Local Finances, Lincoln Institute of Land Policy
Rueben, K., Rosenberg, C., April 28, 2008, State and Local Tax Policy: What are rainy day funds and how do they work? Tax Policy Center
Woolley, J., Peters, G., 1999, Richard Nixon, the American Presidency Project, http://www.presidency.ucsb.edu/ws/index.php?pid=3636last accessed on November 14, 2008
American Tax System vs. Other Countries
The federal government first imposed an individual income tax in 1862 as an emergency means of financing the Civil ar. It also established the Bureau of Internal Revenue, predecessor of the Internal Revenue Service. Tax rates were 3% on income from $600 to $10,000 and 5% on income above $10,000. Later in the war the maximum rate increased to 10% of income." (Encarta)
My how times have changed. This paper will compare the tax systems of four different countries to the American tax system. The four countries that have been chosen are South Africa, Mexico, Hong Kong, and New Zealand..
First lets attempt to briefly (if that were possible) explain the American tax system.
The American Tax System
America has a progressive tax system meaning the greatest tax burden is on people who have the most income. The American tax system can be described…
Corporate Service Center. "Federal Tax Rates." http://www.corporateservicecenter.com/Corp/federal_tax_rates.htm. April16, 2002
Film New Zealand. "New Zealand's tax Environment." Jan. 2002 http://www.filmnz.com/filmnz/Content/Production/Development/Taxation/Taxation.html
Flags of the World. http://www.crwflags.com/fotw/flags/mx.html . April17, 2001
Henry, Aaron. "The South African Tax System: A Nation is Microcosm." Dec. 6,1999:
The other side of this is that the companies have to spend finances in areas of language training or job training when they outsource. However, over the years, many U.S.-based companies haven't been discouraged by these additional costs because the overall costs of outsourcing with the job training session and language teaching and outplacement requirements are still far less when compared to the costs that they would have to endure when they don't outsource. If the overall costs of outsourcing was even marginally close to the costs on domestic hiring then there is a high probability that the overall right of firing of the employers would not be employed as much as it ahs been in the past. Of the negative perception of using the firing right at such an extensive level does create negative images which the company has to spend money to correct and rebuild into positive images…
Poor Payers to a Degree," the Economist, June 10, 2004.
David Cay Johnston. "How Offshore Havens Helped Enron Escape Taxes." New York Times. January 18, 2002.
David Cay Johnston. "Tax Inquiries Fall as Cheating Increases." New York Times. April 14, 2003.
Duncan Campbell. "Havens that Have Become a Tax on the World's Poor." Guardian. September 21, 2004.
The people who opt for early retirement stop staring contribution to pension system where as they start getting the benefits of pension system. (Prieto, 1997)
The traditional unfunded social security system is facing lot of problems in the United States and other developing countries with the increasing life expectancy of the people. The cost of providing any level of service is directly linked to the percentage of people who are employed against people who have already retired and enjoying pension in a pay-as-you-go system. The problem is continuing and increasing with people's move towards early retirement which is encouraged in many countries social security system. Even in the event of retirement being stabilized, the steep increase in the ratio of the aged against that of working age is contributing to the substantial raise in the cost of pay-as-you-go system. The United States estimators, who work for social security system, forecast…
Aronson, Jay Richard; Hilley, John L; Maxwell, James Ackley. (1986) "Financing State and Local Governments" Brookings Institution Press.
Brainard, William C; Perry, George L. (1990) "Brookings Papers on Economic Activity:
Macroeconomics" Brookings Institution Press.
Campbell, John Y; Feldstein, Martin S. (2001) "Risk Aspects of Investment-Based Social
Capital gains and dividend taxes were both initiated in the early 1970's, by the Democratic Party. efore dividend taxes were enforced, the government made its money through higher aftertax yields, The dividend tax was originally supposed to be a progressive measure, so that the wealthiest paid correspondingly more than the poorest because they had benefited more. At this time, only the wealthy invested in stocks. This is no longer true. Most middle-class people today are investors in the market and they do not have the expensive accountants hired by the rich to shield their investments from tax.
Investing in the stock market has become far more widespread over the last two decades, as 84 million people - representing nearly half of all American households - owning stock. Tax-deferred investment tools such as 401(k) plans and individual retirement accounts (IRAs) have placed millions of Americans who make $60,000 or…
Beach, William. (January 23, 2003). Just what our economy needs. San Diego Union-Tribune. (Berlau, John. *February 6, 2003). Accounting firm fights dividend-tax cut. WorldNetDaily. Retrieved from the Internet at http://civilliberty.about.com/gi/dynamic/offsite.htm?site=http://www.wnd.com/news/article.asp%3FARTICLE%5FID=30894.
Centre for International Co-operation and Development. (2003). Corporate Income Tax. Retrieved from the Internet at http://www.gzs.si/ENG/busenv/financ61.htm .
Edwards, Chris. (January 7, 2003). Nearly All Major Countries Provide Dividend Tax Relief. The Cato Institute. Retrieved from the Internet at http://www.cato.org/dailys/01-07-03-2.html .
Hall, Joshua. (January 31, 2003). Dumping fed dividend tax practical on several levels. Columbus Business First. Retrieved from the Internet at http://www.bizjournals.com/columbus/stories/2003/02/03/editorial3.html .
Presently the government manipulates the books around in order to compensate for any tax cuts that they give. In reality, the vital thing for the government to do is to discontinue spending money. While this is not always reasonable, it is essential to make sure that the people and corporations of the nation can flourish. Tax cuts, when put into practice for long-term consequences, will offer a momentous increase in the market (How Do Tax Cuts Help the Economy, n.d.).
Due to the model of fairness, cutting taxes is by no means an easy task. There are two distinct notions that are at play. These are horizontal equity and vertical equity. Horizontal equity is the scheme that all people should be taxed uniformly. An instance of horizontal equity is the sales tax, where the quantity paid is a proportion of the object being bought. The tax rate remains the…
Cloutier, Richard. (2011). Do Tax Cuts Stimulate The Economy? Retrieved from http://www.investopedia.com/articles/07/tax_cuts.asp
How Do Tax Cuts Help The Economy? (n.d.). Retrieved from http://www.taxforuminfo.com/how-do-tax-cuts-help-the-economy/
Consolidated Tax Returns and GoSystems Tax Software
Consolidated Tax Returns
The consolidated tax return, in simple terms, is "a method by which to determine the tax liability of a group of affiliated corporations" (Pratt and Kulsrud 8-2). It is based on the assumption that the business operations of affiliated companies represent a single entity and that, hence, the group's aggregate income ought to be taxed, as opposed to the separate incomes of the member corporations. It would be prudent to mention, however, that the return does not simply report the sum of the taxable incomes of all member corporations as one large, conglomerate entity; rather, it follows a set of special Treasury regulations in determining how to make adjustments for intercompany bargains, and establishing which items to state on a consolidated basis (Pratt and Kulsrud 8-2).
The History of Consolidated Tax Returns
The consolidated tax return traces its origin to…
CPA Practice Advisor. " 2012 Review of Thomas Reuters -- GoSystem Tax RS." CPA Principal Advisor, 2012. Web. 29 August 2014 http://www.cpapracticeadvisor.com/article/10682894/2012-review-of-thomson-reuters-gosystem-tax-rs
Find Accounting Software. "GoSystem Tax." Find Accounting Software, 2014. Web. 29 August 2014 http://findaccountingsoftware.com/directory/thomson-reuters-professional-software-services/gosystem-tax/
Pratt, James, and Kulsrud William. Corporate, Partnership, Estate, and Gift Taxation 2013. 7th ed. Mason, OH: Cengage Learning, 2012. Print.
Thomson Reuters. "The Most Sophisticated Income Tax Software in the Profession: GoSystem Tax RS." Thomson Reuters Inc., 2014. Web. 29 August 2014 https://cs.thomsonreuters.com/gosystem/
Thank you for your consideration of our company as your trusted Certified Public Accountant (CPA) and we hope that this is the beginning of a mutually beneficial relationship. Our company provides superior accounting services to clients with a wide range of accounting issues and needs. Therefore, we are ready to provide excellent accounting guidance and expertise that will help you achieve personal and financial success. In addressing your issue of irrevocable trusts, estate tax and gift tax, we will utilize a six-step procedure to provide you with the most reliable professional assistance.
Based on your request to establish an irrevocable trust for your two grandchildren, the determination of the impact of such a trust on gift tax and estate tax is important. An irrevocable trust is one with specified terms that cannot be changed even by the grantor once the agreement has been signed (Garber, 2017). In your case, there…
Government Should Tax Spending Vice Income
A "sin tax" is a specific type of tax that is levied on certain types of goods and services that the government has deemed unnecessary for individual consumption or action, and that society as a whole considers undesirable, but is nevertheless popular with many citizens. Predominant examples of this are alcohol, tobacco, and gambling. Alcohol and tobacco, for instance, move from an economic to a social issue because of numerous health and behavioral issues that result from use, and have a cost to society. Because of this, it is valid that the government be able to tax certain substances or activities.
The idea of sin taxing is designed not to punish, but to suggest that certain activities are not best for society: alcohol because it causes traffic issues, crime, social ills; tobacco because of the medical and productivity costs; and gambling because of its…
Ensuring Solutions to Alcohol Problems. Ensuring Solutions. (2011). Web. http://www.ensuringsolutions.org/
Hoe, K. The Role of Excise as a Sin Tax. The Star Online. . (January 19, 2010). Web. http://biz.thestar.com.my/news/story.asp?file=/2010/1/19/business/5496890&sec=business
Williams, R.; Christ, K. Taxing Sin. Mercatus Center at George Mason University. (July 2009). Web. http://mercatus.org/publication/taxing-sin
These different elements are important, because they are highlighting how governments can place severe restrictions, on the way various revenues are spent. (Ruppel, 2010, pp. 32 -- 42)
Alternatives for the Public Administrator
Therefore, all public administrators need to understand how to adjust to these different challenges in the future. This means that they must know how to do more with less. One possible way that this could be accomplished is by outsourcing certain city services to private corporations. If they could offer to do the same job for less money, this could help public managers to adjust to changes that are taking place from these sharp cuts. At the same time, the government could also form strategic alliances with nonprofit organizations and charities. In this case, they could see if some of the funds for delivering different services would help to support these organizations. At which point, the two…
Knoller, M. (2011). National Debt Tops $14 Trillion. CBS News. Retrieved from: http://www.cbsnews.com/8301-503544_162-20027090-503544.html
Ruppel, W. (2010). Fund Accounting Fundamentals. Wiley GAAP for Governments 2010. (pp. 32 -- 42). Hoboken, NJ: Wiley.
ather than being idle and receiving public benefit, individuals of working age typically prefer completing useful work. Mark P. Altieri, an associate professor of accounting at Kent State University, Kent, Ohio, and Jason A. othman, (2006), an associate at Wickens, Herzer, Panza, Cook and Batista, note a number of enhancements to WOTC in the article, "Surviving Katrina: Tax breaks for victims of the costliest catastrophe in American history."
According to Altieri and othman (2006), in regard to the WOTC - general law, under IC section 51, the WOTC provides motivation for employers to hire economically disadvantaged individuals. These disadvantaged individuals include qualified ex-felons, food-stamp recipients, veterans, summer youth employees, as well as individuals who receive certain welfare benefits (Altieri & othman, ¶ 23). Altieri and othman explain that in the past, the WOTC -- Katrina was expanded to embrace individuals whose principal residence on August 28, 2005, was located in…
Altieri, M.P., & Rothman, J.A. (2006). Surviving Katrina: Tax breaks for victims of the costliest catastrophe in american history. Journal of Accountancy, 201(2), 58+. Retrieved June 1, 2009, from Questia database: http://www.questia.com/PM.qst?a=o&d=5013771777
Anonymous. (2008). Special tax credit aids Paulding Co. development. Toledo Business Journal.
Telex Communications, Inc. Retrieved June 01, 2009 from HighBeam Research:
http://www.highbeam.com/doc/1P3-1619413051.html Battersby, M.E. (2009). The Memorial Day tax surprise. Metal Center News. Sackett Business
Australian Carbon Tax
The introduction of a carbon tax in Australia would have clear implications for economic and environmental sustainability. While in the long-term, the aim of such a tax seeks to promote environmental sustainability for Australia as a whole, in looking at the short-term, there appear clear implications for economic sustainability for a wide variety of businesses and households. One such area of business that seeks to be affected in both the short-term and the long-term in terms of the introduction of a carbon tax is the tourism and hospitality sector of the Australian economic market, which will likely take a major hit in terms of profitability and finance with the passing of the tax at hand.
Australian Carbon Tax
Australia's proposed carbon tax seeks to have many distinct implications for the long-term economic and environmental sustainability of the country as a whole. However, in looking at many…
The Economist (2007 June 14). Tradable emissions permits are popular, but inferior, way to tackle global warming. Web. Retrieved from: http://www.economist.com/node/9337630 , on 19 September 2011.
Farr, M. (2011 July 10). Julia Gillard unveils her plans for carbon tax. Money Matters.
Web. Retrieved from: http://www.news.com.au/money/money-matters/julia-gillard-unveils-her-plans-for-carbon-tax/story-e6frfmd9-1226091665916 , on 19 September 2011.
Gupta, M. (2011 July 12). Carbon tax to further strain Australian tourism. Travel News.
Naturally, to the extent the AMT applies to the specific segment of taxpayers to whom it was initially addressed, it is serves a beneficial purpose; on the other hand, that benefit must be considered against the unintended consequences and unfairness of its application to taxpayers completely outside the ranks of the very wealthy, particularly at the lower end of that income category. Undesirable Consequences:
The first major potential problem with the AMT is that it does not incorporate inflation at all; as a result, it applies to more and more taxpayers every year despite the fact that their wealth actually remains unchanged during that time. This is particularly important in times of economic recession, especially where income increases fail to keep pace with rising inflation. Whereas the AMT applied to a fewer than 200 households when first implemented in 1970, it currently affects as many as 15% of households earning…
Congressional Budget Office. (2004). Revenue and Tax Policy Brief: Alternative Minimum Tax.
Leiserson, G. (2008). The Individual Alternative Minimum Tax: Historical Data and Projections. "http: Brookings Institution.
The New York Times. (2007). Times Topics: Alternative Minimum Tax. (Dec. 6/07).
AUSTALIA It's CABON TAX IN AUSTALIA
Australian Carbon Tax
The term that took the scientific world by storm in 1987 was "sustainable development," a terminology that redefined the perception on economic growth, human development and environmental conservation. Scientists, engineers, policy makers, and a practically all communities need to get involved in meeting human development needs. However, this brings on a series of problems related to sustainability, especially considering that the contemporary society is experiencing a process of regression when taking into account pollution. People presently need to come up with ingenious methods of improving society without damaging the environment. This pursuit for having economic growth without damaging the ecosystem has lead to the design of new means of creating energy, better lifestyle, change in the human behavior, overall a fresh and innovative attitude towards nature and life. But there are challenges to be faced, and most of them come from…
Adams, P.D., Dixon, P.B., Paramenter, B.R., and Peter, M.W., (1991). Prospects for the Australian Economy 1989 to 2029-30: ORANI-F projections for the Ecologically Sustainable Development Working Groups. Final report to the ESD Working Groups, Monash University Centre for Policy Studies
Brennan, G., (2009). Climate change: a rational choice politics view. Australian Journal of Agricultural and Resource Economics, Volume 53, Issue 3, pages 309 -- 326
Cornwell, A. And Creedy, J., (1996). Carbon Taxation, Prices and Inequality in Australia. Fiscal Studies, vol. 17, no. 3, pp.21- 38
Freebairn, J., (2007). Policy Forum: Climate Change: Some Economic Policy Issues Economic Issues with Climate Change. The Australian Economic Review, vol. 40, no. 4, pp. 402 -- 9
unemployment and tax reform on our social structure including theoretical framework on functionalism, social conflict and symbolic framework and so on and so forth. The orks Cited eight sources in MLA format.
Unemployment has long been the cause of ruin of the American society as well as the global social structure. Persistence in unemployment and the related tax reforms have done much harm than have benefited the mankind on this face of earth. There have been several effects of unemployment and tax reforms on our social structure. The passages below of our research paper will look into not only these effects but will also include theoretical framework on functionalism and social conflict. Before we begin our discussion on the effects of unemployment on the social structure as well as on the effects of tax reforms, it is essential that the readers have a look at the precise yet comprehensive…
Social Structure." Encyclopedia Britannica. 2003. Encyclopedia Britannica Premium Service. Retrieved 10 Jul, 2003 at http://www.britannica.com/eb/article?eu=117544 .
Functionalism, Conflict Theory and Symbolic Interactionism. Retrieved 10 Jul, 2003 at http://www.*****/free_essays/4/sociology/functionalism-confict-theory-and-symbolic-interaction.shtml
Social and psychological effects of unemployment. Retrieved July 10, 2003 at http://www.e-resaneh.com/English/Social/Social%20and%20Psychological%20Effects%20of%20Unemployment.html
Saunders P. Direct and indirect effects of unemployment. Paper presented at the Australian National University in the F.H. Gruen Lecture Series on Welfare and the Labor Market: The New Frontier for Reform.
In the drive to discover new fuels and cheaper alternatives to driving the fact of the matter is that roads will still have to be maintained, and if the consumer is purchasing less fuel by driving fuel efficient cars, then other taxes will have to be raised or implemented to pay for the roads.
A recent study concluded that "more efficient cars and trucks still take up space on the highways and wear them out. Growth will require more highway capacity. Since we finance transportation primarily through dedicated taxes, these need to be ample enough to support these needs" (Petersen, 2007, p. 66). The taxes seen in America are not as high as the ones imposed on the European consumer.
One study showed that "European fuel costs are double those in the U.S. " (Winter, 2007, p. 5). The higher fuel costs there provides the European consumer with incentives not…
Hassett, K.A.; Metcalf, G.E.; (2008) the why's and how's of energy taxes, Issues in Science and Technology, Vol. 24, No. 2, pp. 45-50
Petersen, J.E.; Fueling a Tax, Governing, Vol. 20, No. 6, p. 66
Winter, D.; (2007) the big lie, Ward's Auto World, Vol. 43, No. 7, p. 5
Organization Tax esearch and Planning
The Internal evenue Service has specific rules with regards to transferring property to stock that are based on the value of the property exchanged and the percentage of all voting stock that the group will receive. First of all, the members that are going to take part in the transaction have to be members of one recognized group. The reason for this is that the rules for exchange apply equally to an individual or group that conducts such a transfer. Another caveat to the rules is that the group must be "in control" of the corporation's stock for it to qualify as nontaxable (NTIS, 2011). This rule has been maintained with the tax code for quite some time (National Tax Services, 2004) and requires that the parties acquire at least 80% of the stock for the transaction to qualify as "in control." The transaction can…
National Tax Information Service (NTIS). (2011). Property exchanged for stock. Retrieved from http://taxmap.ntis.gov/taxmap/pubs/p542-001.htm
National Tax Services. (2004). Exchange of property for stock. Retrieved from http://www.unclefed.com/IRS-Forms/2001/HTML/p54202.html
Soda Tax in California
The issue of soda tax, or the implementation of rules that guide the soft drinks industry in terms of guiding the consumer on the content of the soda which often is at the expense of the manufacturer, is not new to California. New York City had a similar bill that was passed but later on shelved due to a court ruling that favored the soft drinks manufacturers who pressed for a ruling out of the directive as unconstitutional. There were three consecutive appeals that failed hence the hopes for that regulation that banned sale of big size bottles of soda among other regulations seem to fizzle out flat (Matias C., 2014).
It is the same spirit as that of Bloomberg in New York that state senator Bill Monning has put forth a proposal that would require the sugary drinks for instance the sports drinks that are…
Calefati J., (2014). Health warning labels proposed for sodas, other sugary drinks sold in California. San Francisco Mercury News. Retrieved November 28, 2014 from http://www.mercurynews.com/california/ci_25137374/health-warning-labels-proposed-sodas-other-sugary-drinks
Bernstein S, (2014). California lawmaker proposes warning labels for sugary drinks. Retrieved November 28, 2014 from http://www.businessinsider.com/r-california-lawmaker-proposes-warning-labels-for-sugary-drinks-2014-13
Esterl M., (2014). Berkeley Voters Approve Tax on Sugary Drinks. Retrieved November 28, 2014 from http://online.wsj.com/articles/berkeley-voters-approve-tax-on-sugary-drinks-san-francisco-ban-falls-short-1415189224
Matias C., (2014). New York City's Soda Ban Fizzles Out For Good. Retrieved November 28, 2014 from http://www.huffingtonpost.com/2014/06/26/soda-ban-new-york-struck-down-bloomberg_n_5533197.html
bonds or General Obligation Bonds are when an issuer, city, or state issues a bond that is guaranteeing repayment of said bonds by any means necessary, meaning the issuer will use any level of taxation power at its disposal to assure the money is paid back (O'Hara & Wesalo Temel, 2012, p. 42). Along with this idea, the full taxing power, faith, and credit of the issuer are used to back the bonds. So the revenues from each kind of tax like sales taxes, gas, property, and corporate taxes will be used to guarantee bonds. Hence the name general obligation bond because the issuer is generally obliged.
When an issuer has a problem with paying someone back, they must "through any means necessary" gain the funds to pay back the money. This means as mentioned before, raising taxes or other avenues or raising capital. Those that issue GO bonds are…
Feldstein, S., & Fabozzi, F. (2008). The handbook of municipal bonds. Hoboken, N.J.: Wiley.
O'Hara, N., & Wesalo Temel, J. (2012). The fundamentals of municipal bonds. Hoboken, N.J.: Wiley.
same-sex marriage refers to a legal married union between two persons of the same sex. In other word, same sex partner is a man legally married to another man or a woman legally married to another woman. Since same sex marriage is a new development in the United States, the federal government has faced challenges in treating the tax issues of same-sex individuals entering into marriage. The IS's (Internal evenue Service) ruling of 58-66 in 1958-1 C.B.60 determines the tax purpose for individuals who have entered into a common law marriage. Under the state law administered by the Federal income tax laws, the IS acknowledges that it recognizes individual's marital status.
Under IS uling 58-66, the Service states that a couple will be treated as married based on the Federal income tax filing purpose, and the IS has applied this uling 58-66 for over 50 years. (Internal Service evenue, 2014).…
Ahroni, S. & Silliman, B.R.(2014). Federal Tax Implications of Windsor . 84(7):CPA Journal.58-63.
Calhoun, C.V. (2015). State Taxes and Married Same-Sex Couples. Calhoun Law Group, P.C.
Cornell University (2015). United State v Windsor. Legal Information Institute.
Goodnough, A. Zezima, K. (2009). Suit Seeks to Force Government to Extend Benefits to Same-Sex Couples. The New York Times.
A major objective of the custodial Financial reporting system is to be continuously and accurately responsive to regular and ad hoc requests for custodial financial reports" (Website of the Internal evenue Service, 2008).
The new information system has not been entirely implemented in the meaning that it still in the stages of control and testing. Once its implementation has been completed, the FMIS is expected to perform the following tasks:
Support the financial audit conducted by the General Accountability Office
Prepare the financial statements of the Internal evenue Service
Prepare reports for trending on operational impact
Feed the BPMS (the Business Performance Management System), the CCW (Compliance Data Warehouse) and the CAP (Custodial Accounting Project)
etrieve the information necessary for the Federal Payment Levy Program (FPLP), and finally
Analyze and report on modules with credit balances belonging to frozen credit processes (Website of the Internal evenue Service, 2008)
Johnson, S., 2008, GAO to IRS: Get Control of Yourself, CFO, http://www.cfo.com/article.cfm/12592210?f=searchlast accessed on December 10, 2008
Website of the Internal Revenue Service, http://www.irs.govlast accessed on December 10, 2008
Website of the U.S. Government Accountability Office, http://www.gao.gov/last accessed on December 10, 2008
Expenditures and Revenues Matrix
City or County: PAKISTAN
School nutrition fund
Major expenditure on wheat, rice, cooking oil etc.
Major expenditure on basic food items for schools of state
Major expenditure items like water supply to schools, checking and distribution of basic food items.
Major expenditure on formation and printing of textbook.
Major expenditure on acquiring textbook from federal government.
No expenditure on textbook.
Not making expenditure on school maintenance.
Not making expenditure on school maintenance.
Major expenditure on purchasing material for school and making payments to constructor.
School nutrition fund
Donations, tax payer money, other revenue generating activities like concerts, cricket matches etc.
Amount given by federal government, donations.
Amount given by state, donations
Revenue Item 2
Donations, tax payer money
Tax money raised by provincial government
No revenue sources…
American Management Association. (n.d.). Financial Decision Making and the Techniques Used in Financial Analysis. Retrieved April 16, 2012, from Flex Study: http://www.flexstudy.com/catalog/schpdf.cfm?coursenum=96088
Brigham, E., & Houstan, J. (2012). Fundamentals of Financial Management. Mason: Joe Sabatino.
Duncombe, W., & Joyce, P. (2012). Public Budgeting and Finance. Public Financial Publications.
Expenditure Guideline Matrix. (2010). Expenditure Guideline Matrix. Retrieved from purchasing: http://purchasing.ua.edu/information/spending_guidelines_nov_2010.pdf