...total number of shares of all other classes of stock of the corporation. The purpose of this provision is to not discourage the formation of corporations. Per our text, there has been no change in the taxpayers wherewithal to pay taxes so the stock represents a continuation of investment but in a different form. Source: Federal Taxation Comprehensive Topics Chapter 14: Page 5 and http://www.irs.gov/pub/irs-drop/rr-03-51.pdf 20: Corporation tax years C-corporations have greater flexibility in choosing a tax year. They may choose to use as their tax year the calendar year or any other12 month period. They can choose a tax year different from its shareholders which can result in income deferral in the first year. This differs from other business organizations as follows: • S-corps and personal service corporations: required to use a calendar year for tax purposes unless a business purpose can be established for using a fiscal year. • Partnerships: required to use tax year of partners with majority interest, or principal partners, or least aggregate deferral method. • Sole proprietors: required to use calendar year Source: Federal Taxation Comprehensive Topics Chapter 14: Page 25 22: Differences in treatment of capital gains and capital losses of corporations and individuals The calculation of gains and losses from the...
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...ASSIGNMENT For The Partial Fulfillment of the Course, COURSE: TAXATION (ACN-4135) SUBMITTED TO, PROF. DR. SWAPAN KUMAR BALA, FCMA SUBMITTED BY, ISMAT JERIN CHETONA ID-111083068 SEC: B UNITED INTERNATIONAL UNIVERSITY DATE OF SUBMISSION: 31st DECEMBER, 2011 CORPORATE TAXATION IN BANGLADESH FISCAL ENVIRONMENT OF STOCK MARKET IN BANGLADESH FISCAL ENVIRONMENT OF STOCK MARKET IN BANGLADESH The share market in a country is the engine of raising capital, which accelerates industrialization and the process of privatization. Share market means the share and stock markets of the country. It is a market for long term fund. With the emergence of the need for infrastructural development projects, for setting up of new industries for entrepreneurial attempts-now there are more frequent needs of funds. Participants in the share market are many. They include the commercial banks, saving and loan associations, credit unions, mutual saving banks, finance houses, finance companies, merchant bankers, discount houses, venture capital companies, leasing companies, investment banks & companies, investment clubs, pension funds, stock exchanges, security companies, underwriters, portfolio-managers, and insurance companies. The main market participants are: ▪ Investors ▪ Brokers ▪ Dealers ▪ Underwriter ...
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...CHAPTER 20 INCOME TAXATION OF TRUSTS AND ESTATES SOLUTIONS TO PROBLEM MATERIALS Question/ Problem 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 *21 22 *23 24 *25 *26 27 28 29 *30 31 32 Learning Objective LO 1 LO 1 LO 1 LO 1 LO 1 LO 1 LO 1 LO 2 LO 2 LO 2 LO 2 LO 2 LO 3 LO 3 LO 2, 3, 5 LO 4 LO 4 LO 1, 4 LO 5 LO 5 LO 1 LO 1 LO 1 LO 2 LO 2 LO 1, 2, 3 LO 2 LO 2 LO 2 LO 2, 3 LO 2, 3 LO 3 Topic Creating a trust Parties to a fiduciary entity Fiduciary tax terminology Fiduciary tax terminology Pass-through entities: incidence of tax Fiduciaries and the AMT Simple versus complex trust; personal exemptions Determining taxable income: five-step approach Distributions of appreciated property Disallowance of § 212 deductions Cost recovery deductions of a fiduciary Charitable contributions of a fiduciary Functions of DNI Computing DNI Terminating a fiduciary entity Fiduciaries and education planning Grantor trust rules Fiduciary tax compliance Fiduciary tax planning Fiduciary tax planning Attributes of simple and complex trusts Fiduciary tax formula Fiduciary AMT computations Entity accounting income Computing entity accounting income Attributes of trusts and estates Income in respect of a decedent Charitable contributions Entity cost recovery Computing DNI, taxable income Computing DNI, taxable income Separate share rule 20-1 Status: Present Edition Unchanged Modified Unchanged Modified Unchanged Unchanged Unchanged Unchanged Unchanged Unchanged Unchanged Modified Unchanged...
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...1. Tomas owns a sole proprietorship, and Lucy is the sole shareholder of a C corporation. In the current year both businesses make a net profit of $60,000. Neither business distributes any funds to the owners in the year. For the current year, Tomas must report $60,000 of income on his individual tax return, but Lucy is not required to report any income from the corporation on her individual tax return. | a. | True | | b. | False | ANSWER: | True | RATIONALE: | Proprietorship profits flow through to the owner and are reported on the owner’s individual income tax return. It does not matter how much of the profit is withdrawn from the proprietorship. Thus, Tomas must report the net profit of $60,000 on his Form 1040 (Schedule C). Shareholders are required to report income from a C corporation only to the extent of dividends received. Consequently, Lucy has no income to report from the corporation for the current year. | POINTS: | 1 | DIFFICULTY: | Easy | LEARNING OBJECTIVES: | SCPE.HRMY.15.LO: 17-01 - LO: 17-01 | NATIONAL STANDARDS: | United States - BUSPORG: Analytic | STATE STANDARDS: | United States - AK - AICPA: FN-Reporting | KEYWORDS: | Bloom's: Application | OTHER: | Time: 2 min. | | 2. Carol and Candace are equal partners in Peach Partnership. In the current year, Peach had a net profit of $75,000 ($250,000 gross income – $175,000 operating expenses) and distributed $25,000 to each partner. Peach must pay tax on $75,000 of...
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...Homework #3 Problem #1 a. Feb 1, 2010 New Machine Bonus 50%: $25,000 MACRS Basis 25,000 April 1, 2010 new machine bonus 50%: $35,000 MACRS basis 35,000 October 1, 2010 used machine, no bonus MACRS basis 30,000 December 1, 2010 used machine, no bonus MACRS basis 40,000 First nine months of the year: 25,000 +35,000 = 60,000 less than 60% of the total: 130,000 – NO Half year convention For mid-quarter convention we verify 30,000+40,000=70,000 more than 40% in the last quarter Depreciation for 2010: (all 7 year table) Feb 1, New machine: 25% x 25,000 = 6,250 plus bonus: 25,000. Total $31,250 April 1, 2010 New machine: 17.85% of 35,000 = 6,247.5 plus bonus 35,000 Total $41,247.5 October 1, 2010 used machine 3.57% of 30,000= 1,071 December 1, 2010 used machine 3.57% of 40,000 = 1,428 Total 2010 Depreciation: $74,996.5 b. This changes the convention to half year convention: more than 60% in the first 9 months. New Calculations: Feb 1, 2010 machine 14.29% of 25,000 = 3,572.5 plus bonus 25,000. Total 28,572.5 April 1, 2010 machine 14.29 % of 35,000 = 5,001.5 plus bonus 35,000 Total 40,001.5 Sep 1, 2010 machine 14.29% of 30,000 = 4,287 Dec 1, 2010 machine 14.29% of 40,000 = 5,716 Total 2010 Depreciation: $78,577 Problem #2 a. Computer: MACRS Basis 16,000, 5 year table, half year, year two: 32% of 16,000 = 5,120 Machine: MACRS Basis 60,000, mid quarter convention, 7 year table, year three: 19.68% of 60,000= 11,808 Furniture: MACRS basis: 29,400 (70% of...
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...complete explanation of the taxation matters referred to. The publishers and the authors are not responsible for the results either of any actions taken on the basis of information in this publication, nor for any error in or omission from this publication. The publishers and the authors expressly disclaim all and any liability and responsibility to any person, who acts or fails to act as a consequence of reliance upon the whole or any part of the contents of this publication. Contents Chapter 1 – Introduction • Geography • Climate • • • • • • • • • • • 6 6 6 6 7 7 8 8 9 9 10 10 11 ¡ ¢ Language and Currency Legal System Advantages of Investing in Korea Constitution Economy Import Controls Major Exports and Imports Communications Finance Government Policy on Foreign Investment in Korea Exchange Controls Chapter 2–Business Forms Available to Foreign Investment • • • • • • 13 £ ¢ £ ¢ Local Corporation Establishment Private Business Registration Establishment of a Foreign Company's Domestic Branch Directors Registration requirements and filing procedures for public securities Shareholdings by non-residents Chapter 3 – Accounting • • • Business Accounting Standards Audit Policies External Audit Policy © 18 . 18 19 19 19 Introduction of the International Financial Reporting Standards § ¨ ¤ ¥ ¦ ¥ ¦ ¥ Chapter 4 – Taxation • • • • 21 21 Introduction Fiscal Year Lodgement of returns National Taxes Corporate Tax © 21 21 22 22...
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...countries are deprived of much needed revenues needed to fight poverty (ActionAid UK, 2013). McNair (2015) reports that between 2010 and 2012 the Democratic Republic of Congo lost over $1.3 billion which is almost twice its health and education budgets joined. As a result government are not able to provide proper healthcare and educational facilities to its people. Similarly Ridgwell (2013) reveals that African countries lose $38 billion a year through tax havens. This money is needed to feed and clothe millions daily. War on Want states that even though the UK loses billions of pounds every year to corporate tax avoiders, its government desists to prevent the UK being used to fuel tax avoidance around the world and further encourages avoiding tax by changing the UK’s tax laws so that companies pay less. Tax competition among other countries have forced government to lower corporate tax rates and offer tax holidays in order to attract foreign investment. While advocates say that multinational...
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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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...CHAPTER ONE INTRODUCTION 1.1 Background to the Study Since the 1960s to date, small and medium sized enterprises (SMEs) have been given due recognitions especially in the developed nations for playing very important roles towards fostering accelerated economic growth, development and stability within several economies (Yitzhaki, 2006). They make-up the largest proportion of businesses all over the world and play tremendous roles in employment generation, provision of goods and services, creating a better standard of living, as well as immensely contributing to the gross domestic products (GDPs) of many countries (OECD, 2000).Over the last few decades, the contributions of the SMEs sector, the development of the largest economies in the world have beamed the searchlight on the uniqueness of the SMEs; and this have succeeded in overruling previously held views that SMEs were only ―miniature versions‖ of larger companies (Al-Shaikh 1998; Gaskill et al. 1993). And although Small and Medium Enterprises have been at the center of the policy debate for quite some time in both developed and developing countries, little analytical work has been undertaken in this area.The dearth information that exists among researchers on Small and Medium Enterprises however provides a sense of how important this sector is for sustainable development in emerging economies (Medina, 2001). For instance, recent studies conducted by United Nations Industrial Development Organization (UNIDO) concur that SMEs...
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...Taxation is said to be one of the key governance tools of any state including the upholding of Zambians sovereignty. INTRODUCTION The most fundamental function of taxation is raising revenue to pay for governmental expenses and programs. "Taxes are necessary to raise revenue for public goods and infrastructure, as well as to provide other sorts of public services conducive to general welfare and economic growth." Tax revenues pay for the necessary goods – like national defense or a legal system – that an unregulated market cannot provide by itself. More often overlooked is the role of taxation as a catalyst for the development of responsive and accountable government, and for the expansion of state capacity. Taxes, however, do more than simply raise revenue: "Any tax that produces revenue will in some way alter the social and economic order." Taxes that only raise revenue without effecting other changes do not exist in the real world. The concept of fiscal policy captures that link between revenue collection and government spending. More specifically, taxes can be used to increase or decrease inflation and purchasing power, stimulate investment, and prevent harmful concentrations of wealth. Taxation is an underrated tool in the effort to build more capable and responsive states. The role of taxation as a central force in the development of democracy resonates strongly in Anglo-American history. The duty of paying for government legitimizes demands for services...
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...Subject code: BBEK1103 Subject: Principles of Microeconomics Contents Preface .......................................................................................................................................................... 2 Introduction ................................................................................................................................................... 3 Effects of Tax systemt .................................................................................................................................. 4 Evaluation of Tax Reforms……………………………………………………………………………………………………………………..10 Conclusion…………………………………………………………………………………………………………………………………………....11 References…………………………………………………………………………………………………………………………………………….14 Easa Faheem S11422649 Bachelors Degree in Human Resource Management 1 Subject code: BBEK1103 Subject: Principles of Microeconomics Preface This is a work done as part of the module „Principles of Microeconomics‟, which is part of the course Bachelor of Human Resource Management. Consisting of an analysis of a Tax reforms for Maldives, this assignment evaluates the purpose of the tax system, types of tax systems, effects of the tax reform systems to the economy and other factors which affect it. The objective of this work is to develop students‟ ability to analyse the critically tax reform systems of certain country, as well as the various external factors that have an impact on the economy...
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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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...Public Finance Methods in Nigeria The Federal Republic of Nigeria is comprised of 36 states located in West Africa geographically bound by the Republic of Niger to the north, the Gulf of Guinea (on the Atlantic Ocean) to the south, the Republic of Cameroon and Chad on the east and Republic of Benin on the west. Since gaining full independence from the British in 1960, Nigeria has gone from a Parliamentary system of government (modeled after the British Parliament), the Biafran Civil War, and numerous dictatorships to the current Democratic system of government. Widely described as the most populous country in Africa (accounting for over half of West Africa’s population alone[i]), the US State Department estimated in 2010 a population of approximately 152 million people of 250 Ethnic groups with the largest ethnic groups comprising of Hausa-Fulani (north), Igbo (south-east), Yoruba (south-west) and Kanuri (north). The religions practiced in Nigeria are Islam, Christianity and indigenous African traditional worship. The Hausa’s are from the northern part of the country and are predominantly Muslims, the Yoruba are from the south west and are predominately an even mix of Christians and Muslims, the Igbos are from the southeast and are predominately Christians. The official language of Nigeria is English in addition to other local dialects. Nigeria’s commercial capital (and former political capital), Lagos, is located in the southwestern part of the country while the political...
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...CONTENTS TOPIC SINGAPORE PAGE NO 1. BASIC PRINCIPLES OF TAXATION IN SINGAPORE 3-4 2. UNDERSTANDING THE SINGAPORE TAX SYSTEM 4-6 3. TAX RATES 6 4. TAX ADMINISTRATION AND COMPLIANCE 7 NEWZEALAND 5. TAXATION IN NEWZEALAND 7-8 6. INCOME SUBJECT TO TAX 8-9 7. TAX RATES 9-11 8. TAX ADMINISTRATION AND COMPLIANCE 11 1. BASIC PRINCIPLES OF TAXATION IN SINGAPORE The scope of taxation in Singapore 1. Income tax is charged on income from an employment exercised in Singapore and on any income accrued in or derived from Singapore, regardless of the tax residency of the individual. The taxability of employment income depends on where the services are performed, not where the payment is made or where the employer is resident. 2. With effect from 1 January 2004, income derived from sources outside Singapore, even if received in Singapore (except for income received through a partnership in Singapore), is exempt from Singapore tax. The tax year 3. In Singapore, an individual's income of the preceding calendar year ('tax year') is assessed to tax in the following calendar year ('Year of Assessment'). For example, if an individual commenced his or her employment in Singapore in April 2010, the employment income derived in the period April to December 2010 will be chargeable to tax in Year of Assessment (“YA”) 2011. Methods of calculating tax 4. Resident individuals are entitled to personal...
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...Direct Taxes In Bangladesh Direct Taxes In Bangladesh Md Syedur Rahman Id:053-218-530 Parvez Akhter Linkon 053-225-530 Id: Act-322 {MBR} Direct Taxes In Bangladesh A tax is a financial charge or other levy imposed on an individual or a legal entity by a state or a functional equivalent of a state. Taxes consist of direct taxes and indirect taxes. “Pecuniary burden laid upon individuals or property to support the government a payment exacted by legislative authority”. Tax is not a voluntary payment or donation but an enforced contribution, exacted pursuant to legislative authority and is any contribution imposed by government whether under the name of VAT, Custom, Excise or other name. Taxation means imposition of a non-penal yet compulsory levy for transfer of resources from private to public sector, imposed by the public representative based onpre-determined criteria and without reference to any specific commitment, in order to accomplish some nation’s economic and social objective. These are dues that we pay for the privileges of membership in an organized civil society. Tax is imposed in the assessment year based on income year. Assessment year: The assessment is a period of 12 months just following the income year means computation of total income and tax payable there on. Income year: Income year is the year when the income is earned. The income tax is administrated Income Tax Ordinance, 1984 and the Income tax Rules, 1984 as well as notification...
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