...TX1 Basic Concept Tax policy Branch o the department of finance: responsible for the development and evaluation of federal taxation policies and legislation. Canada Revenue Agency: actual collection of taxes and interpretation of tax law Tax payable by persons resident in Canada: An income tax shall be paid … on the taxable income for each taxation year of every person resident in Canada at any time in the year. Persons: including corporations and anybody representing such persons. (Individuals, corporations, and trusts that represent individuals or corporations.) Full time resident: are subject to tax on their worldwide income throughout the entire calendar year. All domestic and foreign sources of income, including capital gains, must be included in the computation of net income. Non-resident person: may be subject to tax only if he was employed in Canada, carried on a business in Canada or disposed of a taxable Canadian property. The tax liability for the non-resident person would be calculated on the income from these items only, not on world income. Deemed resident: ▪ Sojourning in Canada for 183 days or more in a year ▪ Being a member of Canadian forces ▪ Performing services outside Canada under an international assistance program of the Canadian International Development Agency, if the individual was resident in Canada at any time during the three months prior to the day the services commenced; and ▪ Being an officer...
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...not deductible currently since allowable capital losses can ONLY BE DEDUCTED AGAINST taxable capital gains. (A net allowable capital loss for the current year can be carried over to other years under Division C, as will be discussed in chapter 10.) ABILs Allowable Business Investment Losses are effectively allowable capital losses, resulting from the disposition of shares or debt of Small Business Corporations (CCPCs carrying on Active Business), which are deductible against any type of income. (ie not restricted to capital gains.) As such they are identified and segregated from the net taxable capital gain/loss computation for the year, and dealt with separately. This is effectively a tax incentive to motivate investors to invest in Canadian small businesses. If an individual has previously claimed a capital gains deduction (anytime since 1985), any subsequent BIL is reduced (disallowed) by an amount equal to the capital gains...
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...LEGAL ASPECTS OF BUSINESS The next big reform – GST Submitted to – Prof. I. Sridhar By, Ashwin R Golapkar Section E 2012PGP120 TABLE OF CONTENTS Introduction ....................................................................................................................................................... 3 Objectives of Tax reforms ............................................................................................................................. 5 Implementation of the Existing System .................................................................................................. 11 Shortcomings of the Existing Tax Structure .......................................................................................... 13 Alternatives Available in the implementation ....................................................................................... 18 Tax base and Rates ........................................................................................................................................ 25 Implementation of GST in other countries......................................................................................... 37 Data Analysis and Interpretation........................................................................................................... 38 BIBLIOGRAPHY ............................................................................................................................................. 40 LEGAL ASPECTS OF...
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...Services Tax (GST) in India: prospect for states by Mohd. Azam Khan1 and Nagma Shadab2 Department of Economics, Aligarh Muslim University, India Abstract: Goods and services tax (GST) is a broad based and a single comprehensive tax levied at every stage of the production and distribution chain with applicable set-off in respect of the tax remitted at previous stages. It is basically a tax on final consumption integrates the union excise duties, custom duties, services tax and state VAT. Presently around 140 countries have adopted the GST pattern, including India. The GST would be beneficial for the consumers as it reduces the final burden of taxation. For Government it leads the reduction of tax compliance efforts and administrative costs and for business units it leads transparency, complete set-off and removal of cascading effect of taxation. It is in this background that the present paper tries to explain the significance of GST in India and its prospects for states to generate revenue and ensure transparency in tax structure. This paper is organized into seven sections. Section two presents justification for dual structure of GST in India. The third part presents the rate structure under GST work in India. The fourth segment is concerned with the working of GST in India. The fifth part shows the international experiences of GST at state level in India. The seventh and final part is related to conclusion and policy recommendations. Keywords: Goods and service tax, budgetary revenues...
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...presentation is intended to help you review taxation concepts as you prepare for the PA1 and PA2 exams. In addition to this refresher, a more detailed review of the Personal & Corporate Taxation course is provided in the TX1 lesson summaries. To brush up on the changes to the accounting treatment of tax issues, review IAS 12 under International Financial Reporting Standards (IFRS) as well as section 3465 of the Accounting Standards for Private Enterprises (ASPE). Purpose Knowledge Horizontal and vertical thinking Ethics Legal responsibilities Income Tax Act Steps in computing income tax Source concept Distinctions Employment income versus business income Business income versus capital gain Business income versus property income Business income versus hobby Employment or office income Accounting income versus income for tax purposes Depreciation versus CCA and CECA Taxable versus non-taxable Calculating business income deductions Income from property Dividends 11/23/2014 12:12 PM Untitled Document 2 of 18 http://www.cga-education.org/2014-15/PAP/Refreshers/tx1.refresher.htm Tax integration — Corporation Tax integration — Shareholder Capital cost allowance Cumulative eligible capital amount Relationships Related Associated Connected Capital gains and losses Taxable income Tax payable by individuals Tax on split income Tax payable by a corporation Part I tax payable by a corporation Canadian controlled private corporation Manufacturing...
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...Question 1. One of the important concepts in Canadian taxation is integration. Discuss the mechanisms built into the Canadian tax system for Canadian controlled private corporations to allow for integration. In your discussion, include the taxes put into the system to prevent deferral, the dividend gross-up and dividend tax credit prior to 2014 and for tax years after 2013. Discuss both investment income and business income. Question 2. Memo To: Staff Accountant From: Manager Date: June 6, 2014 Subject: Hema Ltd. Share Issues Hema Ltd., was incorporated in Ontario in 1991 to carry on a small manufacturing business. The corporation has been a client since its incorporation. Both of the two classes of the issued shares of Hema Ltd. are qualifying small business corporation shares. Penny has always owned all 10,000 of the Class A shares which have a PUC and an ACB of $100 and a FMV of $950,000. All 1,000 of the Class B shares are owned by Jacqui, a long-time key employee. Jacqui paid $10,000 for the Class B shares at the time of their issuance. The Class B shares now have a FMV of $50,000. Below is a summary of my notes from a meeting that I had with Penny in connection with several transactions involving Hema Ltd. and its shares. Penny has been talking with a business associate whose accountant has offered some advice that has attracted her attention. Penny respects her associate’s decisions and, thus, is contemplating a freeze of her shares of Hema...
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...Jun Hui Professor Joan Young RPA 304 – Advanced Real Property Assessment I 14 Oct 2015 Writing assignment 1 Since Mrs. White has the concern about the fairness of two tax system, it is necessary to explain the general differences between them first. The proposition 13 and ad valorem are two different property systems on purpose of imposing property tax. An ad valorem tax (Latin for "according to value") is the property tax which amount is a percentage of the property market value. It has been widely used by majority of counties. The Proposition 13 was raised in California 1978, it changed from the ad valorem system based on market value to it based on legality. It has several important features: ➢ All real property values were rolled back to their 1975 level. ➢ Proposition 13 stipulates that real property must be reappraised at its full market value only when it is sold. ➢ The values of properties not sold during the year are adjusted for inflation. Inflation is limited to the California Consumer Price Index. There is a limit of 2% on assessment increases but there is no limitation on decrease. ➢ All real property newly built is valued at market value once construction is finished. ➢ Proposition 13 effectively reduced the tax rate on property from about 2.65% statewide to a maximum of 1% of taxable value, plus an amount necessary to retire existing voter-approved debts. The assessor is required to recognize declines in...
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...Whether you are an individual citizen or a multinational companies (MNCs) you are subjected to a tax. Certain offshore jurisdiction around the globe offers lower tax rates and other tax features. It is designed to attract domestic and foreign investors seeking an opportunity to game the tax code and maximize profits. The Canada Revenue Agency has defined Tax Havens as jurisdictions with no tax, or very low rates of taxation; strict bank secrecy provisions; a lack of transparency in the operation of its tax system, and a lack of effective exchange of information with other countries. As shown in (Desai, Foley, and Hines Jr 2004), examples of such Tax Havens include Ireland, Luxembourg, Singapore, and various Caribbean island nations in America. According to Tax Justice Networks 2012 report, approximately USD $21 trillion to $32 trillion is sheltered from taxes in unreported Tax Havens worldwide. Canada has suffered tax revenue loss of $7.8 Billion annually as a result of Tax Havens (Canadians for Tax Fairness [CTF], 2013). In 2007, US president Barack Obama and his Senators C.Laevin and N.Coleman noted “Offshore Tax Havens have declared economic war on honest U.S. taxpayers”. Apple is among 82 of the top 100 publicly traded U.S. companies that operate subsidiaries in Tax Haven jurisdiction as of 2012 (U.S.PIRG, 2012). Every dollar in taxes that MNCs and top tier wealthy individuals avoid by using Tax Havens must be balanced by those honest taxpayers paying higher taxes...
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...[pic] RESEARCH PROPOSAL EPGB6122 Title: “Public Readiness in GST Implementation 2015 - In case of Kuala Lumpur, Malaysia” Prepared by: Noorul ‘Aini Hanifa binti Su’aidi EGC140004 Masters in Public Administration Semester 2014/2015 Public Readiness in GST Implementation 2015 - In Case of Kuala Lumpur, Malaysia 1. Background Taxation is one of the important elements in managing national income, especially in developed countries and has played an important role in civilized societies since their birth thousands years ago (Lymer and Oats, 2009). The introduction of Goods and Service Tax (GST) was first announced in Malaysia Budget 2005, and then projected to be implement in January 2007. In February 2006, government has announced that the implementation would be postponed to a later date. In 2010, it was when Government finalizing the study of the implementation of GST and identifying the social impact of GST on the public and inviting many discussions among expert and GST proponents publicly. The uncertainty on GST implementation cast many doubts as to whether Malaysia needed the GST regime, and if so, what could be the public benefits to the public from this exercise. The government had putting a great effort in promoting the implementation of GST, however an attention to educate the public of GST understanding should be in place as well. Hence, GST is not a new exercise of tax; with more than 140 countries worldwide having had implemented GST...
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...orkMultinational Corporations 1. Multinational Corporations http://www2.econ.iastate.edu/classes/econ355/choi/mul.htm Definition of MNC | Multinational firms arise because capital is much more mobile than labor. Since cheap labor and raw material inputs are located in other countries, multinational firms establish subsidiaries there. They are often criticized as being runaway corporations.Economists are not in agreement as to how multinational or transnational corporations should be defined. Multinational corporations have many dimensions and can be viewed from several perspectives (ownership, management, strategy and structural, etc.) The following is an excerpt from Franklin Root, International Trade and Investment | Ownership criterion | Some argue that ownership is a key criterion. A firm becomes multinational only when the headquarter or parent company is effectively owned by nationals of two or more countries. For example, Shell and Unilever, controlled by British and Dutch interests, are good examples. However, by ownership test, very few multinationals are multinational. The ownership of most MNCs are uninational. (e.g., the Smith-Corona versus Brothers case) Depending on the case, each is considered an American multinational company in one case, and each is considered a foreign multinational in another case. Thus, ownership does not really matter. | Nationality mix of headquarter managers | An international company is multinational if the managers of the...
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... | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | NO TAX CONSEQUENCE S. 15(2.6) Slide 2 Slide 2 | | | | | | | | | | | | 15(2.6) | | | | | | If Fred takes out a loan from Ink Corp. for Nadia and repays the loan within one year after the end of the taxation year, Fred will not have to include the loan in Nadia's income. Section 15(2.6) | | | | | | | | | | | | | | | | | | | | | | | | It must be established by subsequent events or otherwise that the repayment was not part of a series of loans or other transactions and repayments. | TAX CONSEQUENCE Inclusion of income S.15(2) Slide 3 Slide 3 | | | | | | | | | | | | If Nadia's loan remains unpaid at the end of the taxation year which the loan is made, Section 15(2) states that the loan or the balance of the loan must be included in Nadia's income. The inclusion in Nadia's income takes place in the taxation year (calendar year) in which the loan was made. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Repayment of the loan by shareholder Deductions to income 20(1)(j) Slide 4 Slide 4 | | | | | | | | | | | |...
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...evasion in Pakistan. It is a primary research. Literature review: Many authors have discussed impacts of tax evasion in different sectors of economy. Previously tax evasion cause major trouble in Tanzania & Greece. Methodology: A questioner has been filled by targeted population of 100 Professionals & Business students of Department of Management Sciences Islamia University of Bahawalpur. Questioner was consisted of 5 major parts i.e. Tax System, High rate, Go with the flow, Corrupt Govt. & Progressive taxation. Findings: Most of the population agrees that these causes play a vital role in the tax evasion in the Pakistan. Conclusion: Tax evasion is main problem of Pakistan which needs to be eliminating by following the recommendations that tax system must base on ground realities, tax rates should be low. There should be proper check & balance of government, tax awareness in public should arise by different channels. Keywords: Pakistan, Tax Evasion, Progressive Taxation, Corrupt govt., Tax system. 273 www.macrothink.org/ijafr International Journal of...
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...0084-0807 May 1974 Land Taxation and Land Reform by Geraldo W. Sazama and Harlan Davis LAND TENURE CENTER University of Wisconsin-Madison 53706 Land Taxation and Land Reform* Reprinted from ECONOMIC DEVELOPMENT AND CULTURAL CHANGE Vol. 21,No. 4, Part I, July 1973 01973 by The University of Chicago. All rights reserved. Printed in U.S.A. Geraldo W. Sazama University of Connecticut Harlan Davis U.S. Agency for InternationalDevelopment, Brazil Land taxation frequently has been presented as a panacea for certain problems of agricultural development. More specifically, the land tax has been seen by many as aquick and easy substitute for land reform, especially in Latin America.' This type of thinking, unfortunately, can cloud the real and important contribution that land taxation can make to the develop ment process. Because of its ability to be relatively neutral in its economic effects on agriculture, land taxation isalmost unique among the many ways 2 available to convert surplus agricultural output into development capital. It is, however, no substitute for a direct land reform program; it merely complements a nation's direct efforts to improve the agricultural sector while it goes about its principal task of raising new public investment capital for the economy.3 This paper uses both theoretical and empirical analysis to examine the effectiveness ofa land tax as aregulatory tool. Weare particularly interested in evaluating land taxation as adevice to induce an...
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...Andrew Peller Limited ~ 2012 Annual Report 1 FINANCIAL AND OPERATING HIGHLIGHTS FOR THE YEARS ENDED MARCH 31 (in thousands of Canadian dollars, except per share amounts) 2012 SALES AND EARNINGS Net sales EBITA Net earnings FINANCIAL POSITION Working capital Total assets Shareholders’ equity PER SHARE Net earnings per Class A Share - basic and diluted DIVIDENDS Class A Shares, Non-Voting Class B Shares, Voting SHAREHOLDERS’ EQUITY MARKET VALUE Class A - HIGH Class A - LOW Class B - HIGH Class B - LOW ANALYTICAL INFORMATION Return on average shareholders’ equity Return on average capital employed Ratio of current assets to current liabilities 2011 $ 276,883 32,651 13,001 34,869 285,552 120,552 0.93 0.360 0.314 $ 265,420 31,544 11,223 27,643 267,996 114,297 0.78 0.330 0.288 10.30 8.70 10.70 8.65 10.9% 11.4% 1.3:1 9.25 8.25 11.00 9.55 9.8% 11.6% 1.3:1 10 11 12 10 11 12 10 11 12 113,680 114,297 263,151 265,420 276,883 Net Sales Net Earnings from continuing operations before gains (loses) on nancial instruments and other expenses Shareholders’ Equity 1 FINANCIAL AND OPERATING HIGHLIGHTS 120,552 8,408 11,683 13,662 OveRview Andrew Peller Limited (“APL” or “the Company”) is a leading producer and marketer of quality wines in Canada. With wineries in British Columbia, Ontario and Nova Scotia, the Company markets wines produced from grapes grown in Ontario’s Niagara Peninsula, British Columbia’s...
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...MULTISTATE CORPORATE TAX COURSE John C. Healy | Michael S. Schadewald 2014 EDITION CPE CoursE! BONUS Earn CPE Credit and stay on top of key Multistate Corporate Tax issues. Go to CCHGroup.com/PrintCPE 2014 EDITION MULTISTATE CORPORATE TAX COURSE John C. Healy | Michael S. Schadewald ii Contributors Authors ........................................................... John C. Healy, MST, CPA Michael S. Schadewald, PhD, CPA Technical Review ....................................................... Sharon Brooks, CPA Production Coordinator ................................................... Gabriel Santana Production ......................................................................... Lynn J. Brown Layout & Design..................................................................Laila Gaidulis This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. © 2013 CCH Incorporated. All Rights Reserved. 4025 W. Peterson Ave. Chicago, IL 60646-6085 800 344 3734 CCHGroup.com No claim is made to original government works; however, within this Product or Publication, the following are subject to CCH’s copyright: (1) the gathering, compilation...
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