Taxation Essays (Examples)

Taxation

An alien is a person who is neither an American national nor citizen. A non-resident alien is a person who has not qualified after taking the presence examination or the green card evaluation. The American government taxes non-resident aliens only on earnings from U.S. commerce sources. Consideration of income is effective based on commerce or trades within the U.S.A. And is ineffective based on income outside USA sources (Fellows, 2012). For non-resident aliens, taxing of their income is independent of efficiency of connection of the alien's income to U.S. trade or commerce sources. It is succinct that USA tax regime differs for resident and nn-resident aliens.

Income that is properly linked to a USA commerce or trade is subject to a flat legislative tax of 30% on the total amount earned without a deduction executed for related expenses. Decreased tax rates exist depending on the type of income and…

Taxation in the United States

The taxation system of the United States of America is flawed in many ways; meanwhile there are some benefits of this system as well. The current taxation system of the United States needs to be analyzed to point out the flaws in the system. The main purpose of this paper is to discuss the current components of this system with respect to the flaws and good things about it, to discuss the problems relevant to the particular taxes and what can be done to solve these problems. efore we go on to analyze the system, it is important for us to know the components of the taxation system and the types of taxes that are imposed on the people in the country.

Overview of the Current System

The United States of America is known as a federal republic. This implies that it is composed of…

In this way, taxation on sellers also diminishes the market in question, as both supply and demand lower to reach the new equilibrium.

The ultimate effect of all forms of taxation on goods is therefore that both buyers and sellers are affected, as the market responds to both changes in demand and supply, regardless of which carries the initial effect.

II. PRICE CONTROL and TAXATION on MILK

According to Chris Edwards (2007), the milk market has been affected by government-imposed price controls since the 1930s, with the implementation of "marketing order" regulations. According to these, minimum prices were imposed upon diary processors, which were payable to farmers. This policy limits marketing competition by imposing a minimum government price upon dairy products. In other words, entrepreneurs are unable to supply dairy products at competitive prices and raise demand as a result. Another effect of this price control factor on the market…

The tax holiday was more likely to benefit families that had "the disposable income to buy an $80 sweater for their teen"(De La Torre 2008). To extend this argument, the effect upon equilibrium price and quantity demanded by such non-price sensitive consumers was negligible, resulting in no net benefit to the state's retailers or middle-class consumers. The sales tax holiday on clothing was as equally regressive as a sales tax on clothing -- someone buying a $500 pair of Prada boots gets the same exemption as a poor woman buying her child a much-needed new school uniform, during the holiday period, in contrast to the periods of time when the sales tax was imposed on goods over $75.

But why places a sales tax on clothing, any form of clothing at all? Making the exemption on clothing on items only below a certain amount seems arbitrary. Perhaps shoes in excess…

2.) Consider implementing a tax which targets tourists and visitors to New Jersey, with the funds being directly allocated to school districts in the state. A hotel and lodging tax, or a sporting ticket tax, if relatively minor and unobtrusive, could easily bridge the gap between New Jersey's stated educational goals, and the funding capacity necessary for their achievement.

3.) Provide attainable goals for students so that the level of educational outcomes is dependent on their drive, ambition, and talent, rather than on the decree of an anonymous lawmaker in Trenton. When the education of an entire generation of students is contingent upon a Congressional body that has become synonymous with futility, we should not be basing the schooling of our children on funding formulas and tax rates.

eferences

Cerf, C.D. New Jersey Department of Education, (2012). Education funding report. etrieved from State of New Jersey website: http://www.nj.gov/education/stateaid/1213/report.pdf

Crawford, C.,…

Taxation

Impact of taxes on business owners

Tax Implications on Salary and Dividend Payments

The amount of money that a business takes out has important implication of tax amount that the business will be liable to pay. But for the case of sole proprietorships and partnerships, it makes no difference how much or when the money is taken out of the business. After all, owners of both partnerships and sole proprietorships pay personal taxes on their full share of their company's incomes every year. These business structures do not allow for owner salaries but withdrawals which have no tax impact at all (oss, 2007).

For the case of corporate businesses, owners can get money out of their businesses in just a number of different ways each of which has different tax implications. In this case, the business owner and the tax authorities are at cross purposes; the business owner wants…

The total imports will tell you how much how strong the economy is based upon areas that are being heavily taxed. This is because the non-direct taxation system, will tax imports and other items, as a way to raise revenues for the government. (McCann 2006, pp. 37 -- 53) y comparing this number with the information presented earlier, we can see the total effects of the non-direct taxation policy on the economy and the government. When you look at the total number of imports that were being received, it is clear that this figure is following a similar trend as the rest of the economy. With total imports coming in at: $881.6 million for 2007, $876.5 million for 2008 and $735.9 million for 2009. The below chart illustrates the overall declines that were seen with imports during this time. (Cayman Islands Annual Economic Report 2007) (Cayman Islands Annual Economic Report…

Based on that, the original 8% cash transaction would not be considered a reorganization, but the subsequent exchange of stock for the 75% interest in Travis would be considered a non-taxable reorganization. This view was upheld in Chapman v. CIR. This recognizes the principle of continuity of interest that is required. The first transaction, the 8% that was purchased for cash, would not qualify as a reorganization, as it does not represent continuity of interest. In Chapman V. CIR, the court ordered that the 8% interest would need to be liquidated in order for the transaction to be considered a nontaxable reorganization.

If Austin were to liquidate Travis back into Austin, it would qualify as a reorganization, since Austin now owns a controlling interest in Travis. As long as the reorganization plan is adopted after the controlling interest is acquired, it would qualify as a reorganization to absorb Travis into…

Taxation: Should the UK Government estore the 50% Additional ate of Income Tax?

Debate surrounding the controversial 50 pence additional rate of income tax for high income earners hit the limelight again at the beginning of this year following Shadow Chancellor ED Beals' announcement that the Labor Party intended to restore the same if it was elected to power in the 2015 general elections. Addressing journalists in January, the Shadow Chancellor argued that such a move would see the economy raise approximately £10 billion over a period of three years, which would essentially imply that i) the level of national debt would be reduced, and ii) disparities in income and wealth would be minimized through a fully-progressive tax system structured to ensure that "those with the broadest shoulders bear a fairer share of the burden" (Merrick, 2014). The Chancellor's argument and the Labor Party's proposal by extension have, however, received…

Taxation Discussion

Under Section 706, a partner cannot "change to a taxable year other than that of a partnership in which he is a principle partner unless he establishes a business purpose therefor." Section 444 elaborates. The general rule is that "except as otherwise provided in this section, a partnership may elect to have a taxable year other than the required taxable year." If the deferral period is less than three months. A scenario under which a business might use a different tax year would be tricky to establish, but if there is a business purpose, it can be done. What constitute a "business purpose" is not established under these sections of the code. There could be situations where a business has revenue accrued at the end of the calendar year, but payment in the early part of the next year. That might be a reason why a business would…

S. citizens who renounced their citizenship and long-term residents who have ended their U.S. resident status for federal tax purposes" (Expatriation Tax, 2011). Different rules apply according to the date upon which one expatriated. People that give up their U.S. citizenship or terminate their long-term resident status for tax purposes after June 3, 2004 are required to confirm to the IS that they have fulfilled all federal tax requirements for the five years before expatriation. If all federal tax requirements have not been fulfilled for the five ears before expatriation, even if the person does not meet the financial thresholds, the person will be subject to the expatriation tax provisions. People that have expatriated should file all tax returns that are due, in spite of whether or not full payment can be made with the return. Depending on a person's circumstances, a taxpayer filing late may meet the criteria for…

Northwest Brands

Avoiding Double-Income Taxation

Northwest Brands, Inc., is a small business incorporated in Minnesota. Its one class of stock is owned by twelve members of a single family. Ordinarily, corporate income is taxed at the corporate and shareholder levels. Is there a way for Northwest Brands to avoid this double-income taxation? Explain your answer.

Because corporations are considered fictional 'persons' under the law, they are taxed as separate entities. The incomes of their owners (shareholders) and employees (from the most lower-level employees to the members of the boards of directors) are all subjected to income tax. This is called double taxation as income is taxed "once to the corporation itself and then a second time when earnings are paid out to the corporation's owners (shareholders). This is true only for earnings paid out to shareholders in the form of dividends -- that is, profits paid by the corporation to…

Personal Statement: Master's In Taxation

It is often said that 'there is nothing certain but death and taxes.' I would beg to disagree with the latter statement. Although the existence of taxes may be a reality, the way in which the tax code and accounting standards will change and take shape is anything but certain. Pursuing a master's in taxation would deepen my knowledge of the tax code and enable me to become more flexible in dealing with the inevitable changes that will occur in the profession and tax policy over the next several decades.

The tax code is in a state of transition, and accountants and other finance professionals must be prepared to cope with issues such as the rise in importance and the use of more philosophically-based International Financial Reporting Standards (IFRS) versus the more technically-oriented Generally Accepted Accounting Principles in (GAAP) in the U.S. The increased concern…

Where the charities were directly or indirectly involved in, through their officers in other ventures, the tax debts of such entities were estimated to be $15 million in additional tax debts, mostly payroll taxes. (United States Government Accountability Office, 2007)

There were instances where in spite of findings that the exempted entity was abusing the federal tax system, these organizations continued to have the exempt status. (United States Government Accountability Office, 2007) The rigidity of a trust and the changes in law are contradictory that creates a situation where the intervention of courts becomes necessary. In the case of institutions like the Barnes Foundation for example, the Institution owns art collection, amassed in the beginning of the century by Dr. Albert C. Barnes, has clauses in the establishing of the trust which has the creator's detailed instructions and some restrictions on the use of, the trust and its funds. Charitable…

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Since their inception, a number of LLC statutes have been adopted across the country and becaue of the RULLCA initiative, the various jurisdictional disparities are slowly being replaced with more uniform approaches and interpretations. According to Greubner, LLCs have "evolved [into] a more of a distinct form and less of a hodgepodge of existing corporate and limited partnership rules."

The LLC, though, remains a relatively new governance regime compared to the traditional partnership structure that has been around as a common law form of organization far longer than the first limited partnership statute adopted in 1822.

To date, the remains a paucity of relevant case law adjudicating LLC statutes or agreements; however, recent trends make it clear that there will likely be a growing body of case law in the future as various states hammer out their remaining differences in the inexorable march to universal adoption of the RULLCA.…

(ahn, 2004)

"German, French, Canadian, or even Swedish company will pay a lower corporate tax rate on profits earned in its home country, and little or no tax to its home government on any foreign income." (ahn, 2004) In comparison, an Irish company pays twelve percent tax for income in Ireland and nothing on income from abroad. On the other hand a U.S. company doing business in U.S. And Ireland will pay extra 40% of tax for the profit from Ireland.

The Issue:

The Obama administration has taken a stand that a tax break given to corporate makes them outsource American jobs abroad. The issue concerns the U.S. tax code provision that pertains to the profits of foreign subsidiaries of American corporations. While the profits earned by a corporation in the U.S. are subject to a thirty-five percent tax, the multinational corporation can avoid tax on the profits made overseas.…

More taxes may also induce more savings and less consumption. However when project money is used inefficiently, then it only adds to the economic problems of the country. "If the resources allocated to the government are used inefficiently, or less efficiently than in private hands, economic growth is diminished and production falls. If additional tax dollars are used for a project that makes no contribution to productive capacity, and if the tax dollars raised prevent some private expenditure or investment that would have provided output and jobs in future years, growth is diminished." (Dunkelberg and Skorburg, 1991)

This is the truth about taxation and recession. Now that we have seen how taxes hurt economic activity in the country, let us see when should taxes be cut to avoid a recession. If the government can see production levels slowly going down and can connect it with lower consumption, it needs to…

It occurs due to the change in effective tax rates in the form of property tax amount related to the market value among the groups of property owners. It is known that the appraised market value in the form of yardstick for the property tax equity was used because it is considered as a reasonable way (Dennis-Escoffier & Fortin, 2007; Mikesell, 2011; Nelson, Collins, & Healy, 2008).

Economic Effects

The tax on property and buildings apart from the land distorts the resource allocation with the presence of older property. The increase in property tax rates because the decline in the desirability of placing capital funds into new buildings while creating an incentive against the upgrading of quality. It further leads to the construction of smaller rooms and apartments as compared to the ones that were not required to pay taxes. Certain communities can have tax bases above averages relating to…

Internet Taxation in the U.S.A.

Controversy revolves around the taxation of Internet sales activity and Internet access. The question generating this controversy is: Should the Internet be a tax-free zone in the United States? On the side supporting at least a moratorium on Internet taxation are the some members of the Federal Government and some business people. Opposing a completely tax-free zone are some of the state governors and local government officials. This paper will present arguments supporting a tax-free zone and the arguments in opposition to a tax-free zone, the current status of the issue, and the steps required to resolve the issue.

To begin the analysis of the situation, definition of some terms is necessary. When a transaction occurs between a seller and a buyer, the seller may be required to collect applicable state and local sales tax from the buyer. The requirement is based on whether or…

Federal Taxation: Corporations, Partnerships, Estates & Trusts

Corporate Acquisitions & eorganizations - Tax planning considerations

Why use a reorganization instead of a taxable transaction

Avoiding the reorganization provisions

eorganization is a concept that is defined by paragraph A of Section 368(a) (1) of the IC as being "a statutory merger or consolidation." To elaborate: A statutory merger involves transfer of seller assets and liabilities to the buyer in exchange for the buyer's stock. A statutory consolidation, on the other hand, involves the two companies transferring their assets to a new one in exchange for the stock of that new one. In both cases, the entity that sells is liquidated. This called reorganization

There are three types of reorganizations, and each of them has their specific reasons for being more beneficial than using the taxable transaction.

The three types are the following:

Type "A" eorganization:

This is primarily of benefit to…

To Choose an Accounting Topic That Would Be Excellent for A Dissertation.
Research Topic
Taxation in the digital era is an excellent topic for a dissertation because there is an ongoing debate on whether digital companies are paying their fair share of taxes. Some tax experts believe that digital companies enjoy tax levels close to zero compared to traditional companies, yet they earn huge profits. The underlying principle of corporate taxation is that \"profit should be taxed where value is created\" (Sestakova, 2018). However, digitalization challenges this principle because of it difficult to pin down how and where digital companies create value. Also, digital companies rely heavily on intangible assets, big data, and which is hard to value (Sand- Zantman, 2018). Given this fact, there is a need to research problems that tax accountants face when taxing digital profits.
The above topic is relevant when examined from the technological perspective…

Double Taxation

The author of this report has been asked to define and discuss what it means when referring to "double taxation" with a corporation and its shareholders. Some examples of this will be provided as well. After that is established, comments about all of the above will be offered by the author. Double taxation is an interesting condition with some (but not all) corporations whereby the Internal evenue Service gets two proverbial bites of the apple. While this may seem improper to some, it is part of doing business for these specific types of corporations.

As implied in the introduction, double taxation is something that is very real to shareholders that own a stake in a C-Corporation. What is meant by the term is that income is taxed at the corporate level when it is earned. After that, there is money eventually shifted to the shareholder. When this shift…

Federal Taxation of Partnerships and S-Corporations
As the title of the 2014 article “Why Use a Partnership Instead Of An S-Corp?” suggests, one of the primary criteria in selecting one particular entity type over another is the question of tax liability. In contrast to a C-corporation, in the case of a partnership or S-corporation, the income of the entity is not taxed; rather the partners and shareholders are taxed at standard rates. Income is not taxed at the entity level. It passes through to partners and shareholders and is taxed though them at their individual, personal tax rates. Of course, this raises the question of why become a C-corporation in the first place. But for very large entities, the benefits of legal fictional personhood are great, given that means that shareholders are not responsible for any debts or other legal liabilities generated by the C-corporation. In contrast, an S-corporation exists…

An Analysis of Huey Long’s “Share Our Wealth”
The purpose of this paper is to provide a discussion concerning Huey Long’s speech, “Share Our Wealth,” delivered in a nationwide radio broadcast in April 1935, with respect to the Preamble to the United States Constitution and The Declaration of Independence. The point is made that while there are some similarities in the arguments and goals presented by Long and these two foundational documents, there are far more differences including most especially his views concerning income and inheritance limits as a means to achieving a perfect Union. An analysis of Long’s speech with respect to the Preamble and the Declaration of Independence drawing on relevant excerpts is followed by a summary of the research and key findings concerning these issues in the conclusion.
Preamble and “Share Our Wealth” by Huey Long
How does Long’s arguments relate to the Preamble?
The Preamble to…

3. Third world countries are more likely to rely more heavily upon excise taxes on gasoline, tobacco, and alcohol because those are products that sell very well around the world. These are also products that are in a number of cases, particularly tobacco, that are cheaper than essential items such as water or food. Taxes on tobacco help poor countries who would rely on the taxes more wealthy and more reliant upon tobacco.

4. People in lower and middle income countries are more likely to react to taxation on tobacco because for the consumers of that product in those countries, they will have less income for food and shelter for example. People in wealthier countries can afford the increase; they may hardly notice the increase and if it bothers them on principle, for example, they can afford other alternatives just as easily.

5. Whether or not a government uses consumptive…

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…

As one commentator has stated, the presence of two different sets of accounting rules, each plagued by imprecision and subject to multiple interpretations, gives corporations "two different bites at the apple." (6) What used to be seen as an economically advantageous distinction between tax and financial accounting may now be considered a "credibility gap." (7) (Whitaker, 2005, p. 680)

There have of coarse also been historical defenders of the book-tax gap who are concerned that if tax liability is to closely linked to reported financial statements, the corporate tax lobby might attempt to attack and dissolve the Financial Accounting Standards Board, which has been funded to a large degree and voluntarily by accounting firms and the business community. Sarbanes-Oxley attempted to eradicate this problem by developing a new funding structure, which replaced the old system by replacing these voluntary funds with mandatory fees gleaned from securities issuers.

As the staff…

Fairness in Taxation Act of 2011 was introduced by Jan Schakowsky in order to restore tax fairness through establishing an income tax on federal income tax for individuals with an income of more than $1 million annually. The Illinois Congresswoman introduced the bill in March 2011 as a real solution to the country's revenue crisis at a time when Congressional epublicans were proposing extra tax rates for wealthy and middle- and low-income people. These epublicans were proposing such measures in order to help in footing the bill of the recession and the deficit. One of the major things that the bill seeks to do is to amend the Internal evenue Code to change income tax rates and to amplify the tax rate on people and married taxpayers who earn more than $1 million annually.

Summary of the Fairness in Taxation Act of 2011:

According to the current taxation policy, the…

Oprah Case

In one of her television shows, Oprah Winfrey decided to give away Pontiac G6 Sedans to her audience. From an accounting perspective, its important to determine whether the value of these cars was taxable. Following a comprehensive analysis of taxable and nontaxable income, the cars awarded to the TV audience should have been included in their gross income and subject to federal taxation. According to federal taxation prizes and awards in the form of goods and services must be included in an individual’s income at their fair market value (Bureau of Internal Revenue, 2009). Federal taxation laws stipulate that if an individual wins a prize in a television program, radio quiz program, lucky number drawing, beauty contest or any other event, he/she must incorporate it in his/her income. Based on these taxation regulations, the TV audience should have included the Pontiac G6 Sedans in their gross income and…

Federal Taxation

One of the important procedures involved in Federal taxation is the apprehension of those persons and firms and trusts and others who evade tax payment and thereby break the law. This means that these entities may either conceal facts and/or misrepresent them so that the result would be beneficial to them. Such individuals may under declare their income levels and the earnings and profits that they may have earned during the course of their jobs. They may even over declare the deductions so that any losses would be made up this way. These are all the methods of tax evasions generally used by dishonest individuals who wish to avoid paying taxes to the federal government. However, tax avoidance is another issue wherein individuals and firms exploit the entire tax regime so that they will gain the ultimate advantage.

This way, they break the legal laws that govern taxation…

Taxation Accounting:

Criminal fraud vs. Civil fraud and taxation of U.S. businesses operating abroad

Tax and Tax Code reforms

When a client's accounts were appraised by the IS, it was discovered that an omission of $100,000 had occurred. Upon such discovery, the first step is to investigate the taxpayer individually so as to collect historic reports of the individual; whether he had engaged in any non-compliance of this sort earlier or this is his first time. To determine whether a criminal prosecution is appropriate, a proof that the misconduct was carried out without an acceptable reason is required (CIMINAL INVESTIGATIONS AND POSECUTIONS OF TAX FAUD CASES GUIDELINES). The following conditions must be kept in view when deciding whether a case can be prosecuted or not:

The validity of the proof of the fraud, the sources and contents used to produce a judgment.

The willingness of the prosecutor to carry on…

Even if no actual money changed hands, anything inherited and then sold may have taxable value (Prendergast, 1982; Yin, 2002).

Cases such as Crane v. Commissioner (1947) and Commissioner v. Tufts (1983) reaffirm the concept that there are many different kinds of taxable gains and a large number of individuals fail to realize that anything they acquire must be accounted for (Bittker, 1978; Pino-Anderson, 1982). By addressing the different between recourse and nonrecourse debt, those who find themselves in inheritance situations attempt to avoid taxation on the property they acquire because there was debt owed on that property at the time it was bequeathed to them (Cunningham, 1984; Isaac & O'Leary, 2012). The belief is that the object that was inherited is worth only as much as (or appreciably less) than the debt that was owed on it, so there should not be any taxation of that object (Isaac &…

..individuals are taxed in their total annual income minus their net new additions to savings, which equals annual consumption (eiler).

Both forms of consumption tax are not without their troubles and for the most part there is no consensus on the benefits of either alternative. Overall, the quest to reform the current system of taxation rages on. It will be very difficult to reform the current progressive tax system of because it is so steeped in bureaucracy and tradition.

Conclusion

The purpose of this discussion was to examine the progressive income tax. e found that the this tax system operates by taxing a certain percentage of individual income excluding certain deductibles. The investigation detailed the history of progressive taxation and clearly defines progressive taxation. The investigation revealed that the implementation of such taxation was controversial since its inception which came as a result of an amendment to the constitution. In…

Independent Contractor Status Boons

There are numerous reasons as to why it is of critical importance to distinguish whether an individual is an employee or an independent contractor. The first of these pertains to purposes of taxation. Quite simply, there are numerous ramifications that the status of these two options results in for those who select one or the other. In addition to having to fill out numerous different forms (especially if one is an independent contractor), the crux of the taxation issue is as follows. Independent contractors are generally issued 1099 forms. hen one is an independent contractor, numerous taxes are not taken out of his or her earnings -- including social security and other mandated federal taxes. Subsequently, that individual is responsible for paying those taxes on April 15 when one must submit one's tax documentation. Additionally, individuals who receive 1099s are subject to self-employment tax, which is…

approves of the Superfund and the taxation on oil and chemical companies that is used to clean up environmental messes. Even before these specific elements of the author's concern are mentioned, he or she has made a tacit appeal to the sense of fairness expected to be found in the article's readers; using quotes to offset the alliterative phrase "polluter pays" (and calling it in full the "polluter pays' principle," adding one more instance of the repeated "p" to help the phrase stick in readers' minds) and referencing it as the "cornerstone of environmental policy," the author immediately sets out what is right and what is wrong. This is done in such a way that there is no room for argument -- obviously, if someone makes a mess, they should be the ones to clean it up. Throughout the article, the author never engages in any of the more intricate…

TAXATION IS THEFT?

When Sam the mugger, decides to rob you of your valuable goods or hard earned money at gunpoint, you instantly know what the act is called: theft. You do not only receive sympathy from the public, but are also found entitled to police support and protection. The city administration upon learning of the incident would most certainly show some anxiety over deteriorating law and order situation and the government would certainly criticize the thug's immoral act.

However lets just suppose that Sam the mugger wants you money again. But this time, some respectable people like senators, parliamentarians, Congressmen etc., accompany him. Instead of the gun, he carries an official letter that says certain percentage of your hard earned money is now his. The tone remains the same i.e. threatening. You give him money O ... The dire consequences of not complying with his 'request' are repeated reiterated…

Business income refers to any income usually realized for the execution or transaction of business activity. This indicates that business income is the aspect of earned income from the perspective of business transaction or activity. In order for the business income to apply to the aspect of the taxation system, it is essential to classify business income as ordinary income. Business income consists of business expenses, business losses, and business profits. It is the difference between revenues and expenses of the process of business transactions. This indicates that business income can be positive or negative within the financial year depending on the size of the expenses and revenues. Business income is received from the transactions or sales of products or services within the defined market.

Question Two

OECD model treaty defines a clear perspective in relation to the handling of the business income. This is through indicating that the income…

home-based companies are slowly shifting their business operations to foreign companies to ensure they have an impact in the global business world. Given the current modern changes in international business developments, the number of expatriates is increasing for both long-term and short-term durations. For these organizations, sending employees overseas is an opportunity undertaken to improve business activities but without the right preparation, it is a challenging initiative to any organization. In this regard, companies are constantly training employees on international work issues to ensure their success in the global marketplace (Kontrimas, 2006). However, businesses face several challenges relating to hiring employees for their American-based business or expatriating employees to work in remote facilities, open new plants, and work with international clientele. As is the case H2O, mentoring future corporate leaders to successfully manage operations on a worldwide scale is a welcome step to ensure their operations are not limited to…

LLC & Partnerships

The objective of this study is to answer the questions of what similarities exist between LLCs and Partnerships and what are the benefits of an LLC over a Partnership as well as what issues may arise with the taxation of a trust. Finally, this study will answer whether the rules are clearly defined as to whether the treatment flows through to the grantor of the beneficiaries.

LLC and Partnership Differences

A partnership is reported to involve two or more individuals "who share ownership responsibilities in a business." (Carter, 2013, p.1) Carter additionally reports that a partnership business "does not have a legal identity separate from the owners of the business. A limited liability company combines the operational flexibility of a partnership with the personal asset protection that comes with operating a corporation." (Carter, 2013, p.1) The LLC is reported to have a legal existence that is separate…

revocable and an irrevocable trust? The difference between a revocable and an irrevocable trust is very simple. A revocable trust is one that has been created and that can be revoked at a future time - generally for specific reasons (CompTax, n.d.). These kinds of trusts can also be changed, so if a person does not want to completely revoke the trust but wants to make adjustments, that is possible (CompTax, n.d.). Often these kinds of trusts are made when it comes to wills and estate planning, but they can also be used in order to focus on business transactions and the individuals who are allowed to initiate or complete those transactions. An irrevocable trust, as the name implies, is one that cannot be revoked. Once it has been created it is not able to be changed, which means that anyone who creates it must be very careful about doing…

Individual Financial Contingency Planning

Temporary Assistance is the temporary help for the needy women, men, and children. If one is cannot find a job or the job is not providing enough, and unable to work, temporary assistance ill help in paying the expenses. There are two types of Temporary Assistance programs: Family Assistance (FA) and Safety Net Assistance (SNA). Family Assistance is the provision of cash assistance to the needy families, which include minor children living with their parents or caretaker relatives. According to Family Assistance, qualified adults are limited to receive the assistance for a period of sixty months in their lifetime (Gitman & Joehnk, 2007, p. 21). Once this time has expired, not all the family members are legible to receive family assistance and other benefits. Parents and other adults who have been receiving Family Assistance must comply with the requirements of the fed in order to receive…

Business Entities, Laws, And egulations

This paper will focus on the challenges faced by one start-up businesses and an established company with labor issues. For the start-up, a birth clinic, a case needs to be made for the type of business entity they should each use. The established company is a construction company whose business entity must be identified and employment law pertaining to the scenario will be discussed. For each business, identification of the best business entity for the given situation needs to be accomplished first. The decision of the type of business entity will take into consideration control, taxation, and liability issues. eview of the laws and regulations that each ownership group must consider and identification of risks that the businesses should protect against will be discussed. eview of the construction company's business structure and how it affects control, taxation, and liability issues along with how employment law…

Young Adults Housing Policy Does the Welfare System Encourage or Discourage Young Adults to ecome Pregnant in UK

The specific purpose of this research is to scrutinize the impacts of the UK enefits System on the growing demographic of teenage mothers. ut in order to track down the list of genuine impacts, one must first understand how the system works. Generally speaking, each credible or qualified group is broadly categorized into whether they are taxable or non-taxable. That is to say, those groups of deserving people such as the sick or the low income groups are entitled to the various bonuses they receive, provided that they fulfill a certain taxation criteria. {Inland Revenue, 2001}

Literature Review

Ingham (2005) in this article gives a detailed background and development of the Teenage Pregnancy Policy in England over the last few years which has become part of the National Policy. It gives the…

U.S. TAX in the TEATMENT

US Tax Treatment

Items of income considered earned from within the U.S.

Earned income can be defined as the payment for the performed personal services, for example wages, professional fees or salaries. The list below provides the categories of the types of income tax. It is essential to appreciate the fact that deductions made on the income are determined by the category in which the income falls. The column with heading variable income consists of income in the category of either unearned or earned income or even both (Fraser, 2009).

Types of income

Variable income: they include rents, royalties, and business profits

Unearned income: such incomes include annuities, pensions, social security benefits, Alimony, gambling winnings, capital gains, and interest dividends.

Earned income: tips, professional fees, bonuses, commissions, wages and salaries

Besides the types mentioned which always occur in the form of cash, other taxable sources…

Tax Memo

Sample Tax Memorandum

equested by:

FACTS:

Through sheer happenstance, the taxpayer caught an historic homerun ball at a baseball game you recently attended. At the point the ball flew over the wall of the playing field and into the stands of bleachers -- whereupon it became essentially non-playable -- the status of the ball changed from an ordinary baseball to a collectable item of considerable worth. Since the taxpayer received the valuable ball through luck (and the ability to catch a baseball inflight), the baseball is considered to be a gift. Had you (the taxpayer) taken specific action to select a seat that is commonly targeted by homerun balls (were such a thing possible), possession of the baseball might be considered a gambling win. However, no rules of gambling are applicable to this event.

ISSUE(S):

Is the ball considered a gift? A gift is any transfer to an…

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

Tax Systems

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…

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…

Dividend Tax

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…

This indicates that the government must take necessary measures to limit or reduce the extent of criminal activities within the economy. This can occur through legalization of human smuggling while tightening the rules and regulations governing property or product smuggling.

Smuggling and Price Disparity odel

In the Bhagwati and Hansen odel (Bhagwati-Hansen odel), smuggling is a trade at the world or international prices. This indicates that there is evasion of taxes. This trade involves less favorable transformation curve in comparison to curves under the free trade condition in the absence of the taxation system. This is under the assumption that smuggling involves real cost such as additional transport costs. In their illustration of smuggling and welfare, Bhagwati and Hansen indicate that smuggling has negative effects on welfare. This illustration explains that smuggling reduces welfare in the presence of co-existence between legal and illegal trade (smuggling). Bhagwati and Hansen explain that…

Parliament

What three factors were most important in the development of Parliament as an independent institution with broad political, legislative and financial powers prior to Henry VIII?

Parliament (meaning parler, or 'to talk' in French) came into common use in the mid-thirteenth century (p. 155). It was the term used to refer to the primary meeting of the King and his Great Council. The King typically relied on such assemblies of lords, bishops, earls, barons and abbots for advice regarding major matters that impacted the rights of British citizens. The primary functions of Parliament were to give the King legislative, political, judicial and fiscal counsel at least three times per year.

Parliament was the chief juridical court and open to even everyday freeman by petition. King Edward I is credited with encouraging the petitioning (requesting favor or justice) of Parliament which was a major shift its role and function. Consideration…

long-range professional objectives. Why have you selected this career path? Be as specific as possible about the kinds of positions you seek. Include in this discussion the reasons you have chosen the particular program and major or concentration to which you have applied. What contributions do you expect to be able to make to your classes based on your academic and/or professional experiences?

My academic and professional experiences have led to my short-range goal of earning a Master of Taxation degree from Georgia State University. I wish to attend law school after completing my Master of taxation degree in order to become a tax attorney. Toward my short-range goal I have pursued academic interests, including math, my first major. While working as a manager at Best Buy during my undergraduate years, I became fascinated with business, however, and later changed my major to finance.

After taking my first accounting course…

long-term goals after completing the program. What characteristics do you possess that would make you a good fit for the goals

Short-term and long-term goals: MA in accounting

When embarking upon a master's degree in a field like taxation, it is essential to have a clear idea of one's long and short-term goals, so a student can use the program to its maximum degree of efficacy. Upon graduation, I hope to work at a large corporation, where I believe that my undergraduate degree in finance combined with the invaluable skills and knowledge given to me by graduate study in taxation will enable me to provide superior service to my employers. My knowledge of finance will contextualize any advice I bestow regarding the tax code that is relevant to the corporation, while my knowledge of taxation will contextualize any financially-related advice I may give over the course of my service. My…

mandatory attached reading material cite reading material sources. Please 200 words answer 1) How EU address interest royalty payments made companies member states? 2) What main principles EU Directive? 3) What a "beneficial owner" OECD's Article's 10, 11, & 12? 4) Describe a triangular transaction EU exemptions prove helpful a situation.

How does the EU address interest and royalty payments made between associated companies of different member states?

One of the critical aims of EU statutes regarding interest and royalty payments is to avoid potentially crippling double taxation. To ensure this, a resident of one member state (state A) who receives interest income from a source based in another state (state B) is exempt from taxation from state B. (Module 10: Sources of Investment Income 2). In general, "interest will be deemed to arise in the country of residence of the payer unless the debt on which the interest arises…

Entrepreneurs Should Know bout Federal Taxes for Corporations

ll corporations are subject to the corporate income tax on their net income. Taxable income is the gross income of the corporation, less the deductions allowed. Major sources of corporate income include: gross profits from sales; dividends received; interest; rents; royalties; and gains and losses. Still, there can be other factors that must also be considered in determining the corporation's income. There include: receipts that are actually contributions to capital; property distributions received by the corporation; rentals paid to shareholders of a leasing corporation; and income from a sinking fund.

Each business's tax liability is based on a graduated tax rate scale. Depending on individual factors, a corporation may also be subject to penalty taxes in addition to their regular income tax. The form of business that is operated determines what taxes must be paid. The four general kinds of business taxes…

Australia's taxation system is seen by some as being extremely complicated. It promotes tax evasion and limited understanding of the overall taxation process in Australia. Brinsden found that "Our system is ranked highest in 'complexity' and second lowest in 'fairness' when compared to the UK, USA, Canada, Singapore and Hong Kong." (1-2)

Rather than providing people with a more simplified tax system, the present day taxation policies have increased in complexity prompting some to believe Australia is headed towards an economic downturn. Businesses and the upper class are already using the complex tax policies to evade or seek further tax breaks as the middle class, immigrants, and working class suffer from the unfair policies.

One of the biggest hurdles faced by Australia's government is tax avoidance or evasion leading to a need for more revenue. Brinsden writes: "He said rather than the Australian Tax Office launching costly, large-scale taskforces, making…

The partners are directly responsible financially for the obligations of the business. Therefore, in case of loss or debts, the owners suffer the risks and losses since they have liability for the business. In terms of complexity and flexibility, the partnerships remain appropriate for the partners. The issue of raising finance is shared between the partners; however, they cannot get loans for the business independently. Therefore, they are not suitable for the two partners who wish to set their business.

The third venture is a corporation, which is a separate entity from the persons that establish the business. Therefore, in financial terms, they are easy to raise capital as members contribute, and can borrow finance independently. Like the limited liability partnership, they are legally bound and hence the liability is limited. They eliminate the issue of personal liability. The tax returns are similar to those of partnerships and are taxed…

Security

One of the greatest impediments to e-commerce growth continues to be the lack of consistent security across computing platforms, Web browsers and programming languages. This is a continual threat to the loss of transaction and credit card data as well. The need for a consistent and comprehensive framework would do much to alleviate the confusion on these areas (Kesh, amanujan, Nerur, 2002).

Intellectual Property

The Internet has created an entirely different aspect of property validation and rights. The ownership of intellectual property (IP) online, from content and online systems to integration technologies is also an enabler of overall e-commerce. The role of IP is also serving to more clearly delineate how selling and services systems online manage part of the sales process and selling cycle. IP will continue to be an emerging area of law and will eventually become a catalyst of how companies build and support their e-commerce…

Externalities and Financing Government

Microeconomics Today -- hat is a fair tax?

Tax the rich, give to the poor! Tax the gas-guzzling SUVs of the rich, and give the money to the poor! Or, at very least, give the revenue in the form of tax breaks to independent and corporate organizations attempting to make alternative fuel vehicles. In theory, it seems like an excellent idea. However, although a higher gas tax may seem like a pro-environmentalist policy and superficially progressive in its political tenor and tone, in fact a gas tax really functions in its application as a regressive tax, penalizing the poorer rather than the wealthier Americans. It goes contrary to the fair financing of government, one of the philosophical principles of this nation.

Application of Microeconomic Theory -- regressive taxation and economic incentives for changes in consumer behavior through changes in tax policy

Two of the most controversial…

Businesses are the cornerstone of a capitalistic society. Businesses often drive economic growth and overall societal prosperity. In many instances, business can enhance the overall quality of life of those living in civilization. Looking back briefly at history, provides a unique perspective of business as it relates to societal development. Currently, looking at a minimum wage individual living in America today, they are able to perform tasks and activities that many of the wealthiest individuals in society during 1900 could only dream of. The minimum wage individual can watch television, listen to music on a cell phone, use the internet and even control the weather within their vehicle. This has occurred primarily due to the profit incentive embedded in a capitalistic society. The same will occur with Alex, Bill, Carl, Devon, and Xavier as there farm business developments. These same principles are present for all Christians who want their business…

Federal Tax Current Event

The current epublican leadership race has seen Herman Cain as a front-runner for leadership of the epublican Party and thus, a potential presidential candidate for the 2012 election. One of the main components of his campaign is his proposal of a flat taxation plan for citizens of the United States, known as the "9-9-9" tax plan. This plan proposes to replace the current federal tax code with a flat taxation plan of 9% national sales tax, 9% personal income tax, and 9% corporate tax across the board for all Americans. In the article "Herman Cain's murky 9-9-9 tax plan," the author argues that this plan simply would not fiscally work out and that it would lead to an unfair distribution of the tax burden (Hitzlik, 2011).

Hitzlik argues that flat taxation plans such as the one proposed by Cain tend to not result with their positive…