...Affect of VAT Increase on Small Businesses in the North East of Scotland John Elrick Submission Date 08/12/10 Report Requested By: The North East Representative of the Federation of Small Businesses in Scotland (FSB) Executive Summary The purpose of this report is to provide first hand information and second hand information on what VAT is, the function of VAT, the government’s decision to increase the VAT by 2.5% and the history of VAT. Also an interview and questionnaire will be carried out to help provide this information. This report was required for the North Representative of the Federation of Small Businesses (FSB) on how this VAT increase will affect small businesses in the North East of Scotland. To find the first hand information the internet was used to research value added tax. The second hand information was gathered from owners of small businesses by interviewing them and also handing out questionnaires. From the internet research value added tax is a form of consumption tax that is charged on most goods and the VAT collected goes to the government. There are three at which VAT is charged, standard rate of 17.5%, reduced rate of 5% or zero rate of 0%. VAT was first introduced on April 10 1954 my Maurice Laurié although it was originally proposed in 1918 by Dr. Willhelm. When VAT was first introduced the standard rate was 10% and was just charged to large businesses but was introduced to all businesses. The decision to increase VAT was made by Chancellor...
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...tax rates to monitor and influence their economy. The government will need to increase tax revenues to fund expenditure by increasing taxation by adjusting the income tax level. Role of Fiscal policy The role of the fiscal policy is to monitor the economy and shows the effects of adjusting income tax. The fiscal policy also can redistribute income by progressive tax which is the percentage of tax which is charged due to a person income. This allows mare tax on people with higher incomes to increase tax revenues. The fiscal policy shows that a rise in income tax would lower personal disposal income and profits for sole traders and partnerships, which will cause less spending, less profits for businesses, less investment, fall in aggregate demand and a shrink in the economy. Therefore to get economic growth, the government should decrease income tax which would have a positive effect on personal disposal income, businesses profits, investment and the economy. In addition, taxes affect the distribution of income. Progressive taxes take a higher percentage of a person’s income as their income raises. This makes the distribution of income after tax more equal than the distribution before tax. Taxes There are different types of taxes such as income tax, VAT, council tax, Vehicle Excise Duty, Air Passenger Duty, Excise Duty and Corporation Tax. Income tax is a direct tax on the income someone has. VAT is an indirect tax, which is on all goods bought in the UK. Vehicle Excise Duty...
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...Government policies such as taxation have an impact on Costa Coffee. This is because taxation is collected from individuals and businesses. It is collected through direct tax and indirect tax. This is going to have an impact on Costa Coffee because they are going to have to pay business tax and this also means that the government is following their fiscal policy. If the government decides to increase tax it is going to slow the economy down and if the government decides to low tax it is going to speed up the economy. If the government decides to lower taxes, then Costa is able to invest money into their business. This is going to result in a positive impact because Costa are able to keep most of their profit and invest it into their business which is going to allow their business to grow and expand. There are many way in which the government is able use taxation to make sure that they are receiving money. Some of the ways in which the receive taxes are income tax, national insurance contributions, VAT, council tax, business rates, corporation tax and other tax. All these are a mixture of direct and direct tax. There are many ways in which taxes are bringing advantages to Costa Coffee and disadvantages. In the Government Spending 2010 review, it shows that the government had a total of £548bn coming in through different taxes. It shows that a small amount of the money coming in was from business rates. This shows that this must have had a positive impact on Costa Coffee because...
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...The Acceptance and Awareness of Small and Medium Enterprises towards Implementation of GST in Kuala Lumpur and Johor Bahru CHAPTER ONE – INTRODUCTION 1.1 Background of the Study The production of a good or service, in general, goes through several stages before the final product or service reaches the consumer. To illustrate, if the production and distribution process is divided into three basic stages of manufacturing, wholesaling and retailing, value is added at each stage through further processing, packing or other improvements before it reaches the consumer via the retailer. The GST is a tax on the value added to the output or service at each stage of the process. In its generic form, the GST is a value-added tax (VAT). These terms are used interchangeably in this note. A multi-stage tax like the GST protects tax collections through two built-in features. First, the multi-point collection and invoice trail minimizes tax avoidance and tax evasion. This is because the need to issue and obtain invoices to claim tax deductions for taxes imbedded in inputs from a previous stage of the production chain fosters greater compliance. Second, the GST is better able to protect revenue from tax evasion by retailers as compared to a single-stage sales tax imposed solely at the retail sales tax (RST). This feature, however, comes with greater administrative and compliance costs. 1.2 Problem...
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...Term Paper for BBA (Hon’s) Second year course Department of Management Sherpur Govt. College, Sherpur. Topic: “Accounting Aspect of VAT in Bangladesh.“ Submitted by: Sadhan Krisna BarmanExam. Roll No: 9823502 Registration No : 1806089 Session: 2010-2011 BBA (Hon’s) Second year Class Roll No : 847 Sherpur Govt. College,Sherpur. Date of Submission : February 02, 2014 Chapter Particulars Page No Letter of Transmittal i Preface ii Abstract iii Acknowledgement iv Chapter: 1 1. Introduction 1 Chapter: 2 2.1 Objectives of the Article 2 2.2 Tax System in Bangladesh 2 2.3 Introduction of VAT in Bangladesh 4 Chapter : 3 3.1 Features of VAT in Bangladesh 7 3.2 Efficiency and Productivity of VAT 8 Table 1 : Tax/GDP ratio and various taxes as a percentage of total tax revenues 9 Table 2: VAT as part of Bangladesh tax system: 10 Table for 2002/03-2007/08 based on data 10 Table 3: VAT’s efficiency 11 Chapter: 4 4.1 Reforms in Bangladesh’s VAT 13 4.2 Implementation Problems 14 4.3 Services: 15 4.4 Improving Taxpayer Compliance: 16 4.5 Review of Compliance Concessions: 16 4.6 Recommendations 17 Chapter: 5 5.1 Conclusion 19 Reference: 20 Chapter-1 1. Introduction The origin of Value Added Tax (VAT) can be traced as far back as the writings of F Von Siemens, who proposed it in 1918 as a substitute for the then newly established German turnover tax. Since then numerous economists have recommended it in different...
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...Writing business plans and marketing strategy can be simple. See the free business plan and marketing plan sample/template. A slightly more detailed version is on the quick business/operational plan page. Business planning might appear very complex but in essence its common sense, and begins with some very simple business start-up principles. To explore personal direction and change (for example for early planning of self-employment or new business start-up) see the passion-to-profit exercise and template on the teambuilding exercises page. Planning a new business or business project must at some stage address a few financial details, and challenges and opportunities relating to modern technology, the internet, websites, etc. However the techniques of how to write strategic business plans (or a strategic marketing plan) remain basically straight-forward. Business planning and marketing strategy are mostly common-sense and logic, based on cause and effect. Here are tips, examples, techniques, tools and a process for writing a marketing strategy, business and sales plans, to produce effective results. This free online guide explains how to put together a marketing strategy, basic business plan, and a sales plan, including free templates and examples, such as the Ansoff and Boston matrix tools. New pages are being added soon on advertising, sales promotion, PR (public relations) and press releases, sales enquiry lead generation, advertising copy-writing, internet...
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...NAME: ESSIEN, Idorenyin Eno EMAIL: idee.essien@gmail.com STUDENT ID NUMBER: R1504D7489 08 DATE: 19th October, 2015 ASSIGNMENT TOPICS: Question 1 * Comparing and contrasting business environments in 2 countries – Nigeria and United States by: * Evaluating how their business environment is influenced by government economic policy which may be identified through the application of economic theory. * Critically evaluating the local economic business environment measured against the choice of a comparative international economic and business system. (Pictorial techniques may be used which are appropriate to illustrate and justify the evaluation, e.g. Graphs, charts, economic curve diagrams, etc.) (700 – 1,000 words) Question 2 * Critical evaluation of measures used by governments and central banks to manage the economies of their countries. * By critically evaluating, using convincing arguments in support of the measures used to reduce, minimise or alleviate economic difficulties many countries face. (Examples should be used in the submission to illustrate the justified view) (1,100 – 1,500 words) 1. BUSINESS includes all doings linked with production, trade, banking, coverage, finance, energy, advertising, packaging etc. ENVIRONMENT refers to all external forces, which have comportment on the functioning of business. The environment includes factors outside the firm which can lead to opportunities for or threats to the firm. There is...
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...Business Environment Assignment |Qualification |Unit number - title - level | |BTEC Level 5 HND in Business |Unit 1 – Business Environment - Level 4 | |Student name |Assessor name | |Simon Varga |Susan Simei-Cunningham | | |Berlin Asong | |Internal Verifier |Alan Jeffery | |Date issued |Completion date |Submitted on | |26th January 2015 |27th March 2015 before midday | | |Assignment title |Business Environment - Shaping Your Future – A Vocational Scenario ...
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...IMPACT OF THE VALUE ADDED TAX (VAT) SCHEME ON THE REVENUE GENERATION CAPACITY IN GHANA A LONG ESSAY PRESENTED TO THE SCHOOL OF ARTS AND SOCIAL SCIENCES (SASS), REGENT UNIVERSITY COLLEGE OF SCIENCE AND TECHNOLOGY, IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF BACHELOR OF SCIENCE DEGREE IN ACCOUNTING AND INFORMATION SYSTEMS NII TORTO QUAO (022 0207) DECEMBER 2009 DECLARATION I hereby declare that this long essay is the original research undertaken by me, including all references from other books, handouts, internet, magazines, textbooks, etc under the supervision of the under signed lecturer. Mr. Albert Akanferi …………………………….. ……………………………….. (Supervisor) Signature Date Nii Torto Quao …………………………….. ………………………………. (Student) Signature Date i ABSTRACT A strong and efficient tax system provides the basis for enhanced economic growth and development. Ghana’s fiscal structure prior to 1983 had generally been characterised by low tax revenue. As a result Ghana undertook a number of reforms prescribed by the International Monetary Fund and the World Bank under the Economic Recovery Programme (ERP) and the Structural Adjustment Programme (SAP). Tax reforms constituted one of the essential ingredients of SAP. The tax reform process has assumed diverse dimensions over the pass two and half decades. One of those tax reforms was the Value Added Tax scheme (VATs). The purpose of this study is to assess the impact of the VATs on revenue mobilisation in Ghana...
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...2008 economic deceleration began and the GDP growth rate fell to 0.7%. In 2008, the economy entered into a recession, with a predicted negative growth rate of -4.5% for the following year. (Data monitor Statistics) The current conservative government’s main economic aims are Economic growth with more goods and services produced in the economy, alongside low inflation, little unemployment with a Fair distribution of income. (HM Treasury) Taxation comes in two forms direct taxation (taxation on income and profits) and indirect taxation this is taxation on expenditure (VAT, excise duty). The UK government spends in the region of £400bn a year. Over a third of this money goes in welfare benefits such as pensions, unemployment benefit and other forms of income support. The rest is spent on health, education, defence, roads, law and order and on supporting businesses and local communities. (Data Monitor Statistics) Businesses can benefit direct or indirectly...
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...strongly does not support the implementation. Based on (K. Saira ,2010) he has done a research on the awareness of the people towards GST and his finding indicates that people are not aware that GST will be charge on Goods and Services. The researcher conclude that people are not aware of GST as soon its going to be control in their life. Beside that they are not aware that it will impact on the economy very well. (K. Saira ,2010) There is also another research which is concerning about the perception of Tax Payers on GST by (Tan Mei Lian ,2010) .The author has also done survey questionnaire towards people randomly. Based on the researcher finding it show that many people feel that it is not necessary to introduce GST as it will increase the overall living costs. On the other hand , most of the people prefer GST rate to be around 3% to 5% so this will make them to be more easy to pay their taxes. On the other hand people also feels that GST will provide a lot of burden towards the people which...
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...STRUCTURE, ADMINISTRATION OF VAT IN BANGLADESH WITH SPECIAL REFERENCE TO EVASION CONTROL AND MEASUREMENT OF VAT POTENTIAL DR. RAFIQUL ISLAM First Secretary VAT : Policy National Board of Revenue Government of Bangladesh. (The author acknowledges special thanks to Mr. Saiful Islam Khan, Member (VAT), NBR for his constant guidance in preparing this article. Dr. Mahesh C. Purohit, Professor of National Institute of Public Finance and Policy, New Delhi, India was kind enough to comment on the initial draft which helped to improve it. However, the views expressed in the article are of the author and do not necessarily reflect any opinion of the organisation he serves) Page # 2 Taxing Our Patience Communication is all about people being able to understand each other. Except when it comes to Government forms and directives. That's when middle brained civil servants are in a class of their own. The following is in latest example which arrived in employer's offices courtesy the Inland Revenue : "Errors on form P38A (1992). Form P38A (1992) was enclosed with the form P35 (Employer's annual return) sent to you in late January / early February. We apologise for the fact that Form P38A contained the following two errors. 1. Question No. 1 of the check list on Form P35 says you should complete form P38A if you answer 'No' to this question. However, Form P38A itself asks you to complete it if you answered 'Yes' to Question 1 on the form P35. 2. On form P38A Question 3...
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...STRUCTURE, ADMINISTRATION OF VAT IN BANGLADESH WITH SPECIAL REFERENCE TO EVASION CONTROL AND MEASUREMENT OF VAT POTENTIAL DR. RAFIQUL ISLAM First Secretary VAT : Policy National Board of Revenue Government of Bangladesh. (The author acknowledges special thanks to Mr. Saiful Islam Khan, Member (VAT), NBR for his constant guidance in preparing this article. Dr. Mahesh C. Purohit, Professor of National Institute of Public Finance and Policy, New Delhi, India was kind enough to comment on the initial draft which helped to improve it. However, the views expressed in the article are of the author and do not necessarily reflect any opinion of the organisation he serves) Taxing Our Patience Communication is all about people being able to understand each other. Except when it comes to Government forms and directives. That's when middle brained civil servants are in a class of their own. The following is in latest example which arrived in employer's offices courtesy the Inland Revenue : "Errors on form P38A (1992). Form P38A (1992) was enclosed with the form P35 (Employer's annual return) sent to you in late January / early February. We apologise for the fact that Form P38A contained the following two errors. 1. Question No. 1 of the check list on Form P35 says you should complete form P38A if you answer 'No' to this question. However, Form P38A itself asks you to complete it if you answered 'Yes' to Question 1 on the form P35. 2. On form P38A Question 3 asks 'Was the worker paid less...
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...market’s business environment and how to create and retain customers by providing better value than the competition. As the environment changes, businesses must adapt in order to maintain strategic fit between their capabilities and the marketplace. When we are analyzing the macro environment of a company we usually use the PESTE analysis to help us to clear our goal, identify all the factors which are affecting our company directly or indirectly. Such us political factors, economic factors, social factors, technological factors, environmental factors and legal factors. Political factors. Political factors can influence marketing decisions by determining the rules by which business can be conducted. The relationship between government and business organizations can have major implications not only for the respective parties, but also other companies (Jobber 2004: 146) When we are talking about political factors we have to take in mind the trading policies. Finland’s general trade policy emphasized dismantling barriers to trade and investment and participation in an open world economy. The key challenges include customs duties and nontariff barriers to trade and trade distorting measures that are still prevalent in many markets. Finnish Competition Authority is an organization to protect sound and effective economic competition and to increase economic efficiency in both private and public-sector activity. Membership in the EU has changed the operating environment of Finland's trade...
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...Discuss the effect of tourism on the United Kingdom’s economy. The United Kingdom is a developed country full of fantastic attractions, including beautiful landscapes and World Heritage Sites. It also bears its own unique characteristics in its history and culture. It is meaningful and worthwhile for everyone to pay a visit to its museums and historical buildings. “Visitor Economy Facts” (2013) proves that visiting heritage attractions is a very popular activity both for the international tourists and the UK locals. It quotes the top five attractions in terms of visitors admissions in 2012 based on the figures from the Association of Leading Visitor Attractions are: British Museum, Tate Modern, National Gallery, Natural History Museum and V&A (South Kensington). It shows that heritage and cultural attractions is the charm of the UK and it attracts a huge number of tourists to come. According to “Tourism in the United Kingdom” (2014), the UK is the world’s eighth biggest tourist destination with 29.2 million visitors in 2011. ￡28 billion were spent in the UK by the foreign tourists. “Why Tourism Matters” (2013) also states that since 2010, tourism is the fastest growing sector in the U.K. It is the fifth largest industries and it represents one of the most dynamic economic sectors which determine the growth of the UK’s economy. It generates ￡127 billion to the country’s GDP in each year. However, UK tourism gives both the positive and negative effects to the economy...
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