...the past two years, many of the Earth residents of the Enterprise crew failed to file Federation income tax returns for tax years 2277 and 2278. Others were able to file using Z-mail, but even those persons often lacked sufficient information to file a complete and accurate return. Upon the return of the Enterprise to Federation space, original or amended returns were promptly filed by those crew members that were required to file. Many crew members have recently received notices from the Interstellar Revenue Service that they owe penalties for failure to timely file their income tax returns and/or failure to timely pay the full tax due. ISSUE Does being outside of federation space for an extended period of time give sufficient grounds to have the failure to file and late payment penalties abated? CONCLUSION The IRS has authority to abate failure to file and late payment penalties due to reasonable cause. The IRS, which has sole discretion on what constitutes “reasonable cause,” has only granted relief when the taxpayer is physically unable to file returns. Since crew members were not physically prevented from filing their returns by Z-mail, it is unlikely that the IRS will abate any penalties for failure to file and/or pay their income taxes timely. ANALYSIS Section 9378543 of the Interstellar Revenue Code allows an individual taxpayer to extend his/her income tax return up to a maximum of six months beyond April 15 without penalty. Regulation 301.9378543-4(c)(2)(ii)...
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...THE SALES TAX SPECIAL PROCEDURE (WITH HOLDING) RULES 2007 Updated By Mr. Hamid Hussain Joint Director Sales Tax & Federal Excise Wing Federal Board of Revenue Islamabad. Phone No. 051-9205360 May not be use as a reference in courts THE SALES TAX SPECIAL PROCEDURE (WITHHOLDING) RULES, 2007 THE SALES TAX SPECIAL PROCEDURE (WITHHOLDING) RULES, 2007 1 Notification No. S.R.O. 660(1)/2007, dated 30th June, 2007 .— In exercise of the powers conferred by sub-section (6) and sub-section (7) of section 3 2 [ and sub-section (4) of section 7] of the Sales Tax Act, 1990, read with section 71 thereof, the Federal Government is pleased to make the following rules, namely:-1. 3 Short title, application and commencement .— (1) These rules may be called the Sales Tax Special Procedure (Withholding) Rules, 2007. [(2) They shall apply to taxable goods and services as are supplied to following persons, hereby specified as withholding agents, for the purpose of deduction and deposit of sales tax, namely:-(a) (b) (c) (d) federal and provincial government departments; autonomous bodies; public sector organizations; taxpayers as fall in the jurisdiction of Large Taxpayers Units for the purpose of sales tax, federal excise duty or income tax; and (e) recipients of service of advertisement, who are registered for sales tax. Explanation.--"withholding agent" includes the accounting office which is responsible for making payment against the purchases made by a government...
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...Chapter 9 Individual: OC/OI Other sources of income 3(a) in Div. B: * CPP pension benefit: can elect to do income splitting – 50% of the combined CPP benefit received. Contributor must be >60 years old * Pension income: 50 of combined pension income. >65: eligible pension income includes annuity payments under RPP.RRSP,DPSP. RRIF <65: RPP + death of spouse payment * Retiring allowance: pension income and death benefits. A. retirement from an office/employment in recognition of long service B. loss of office including court-awarded damages received by taxpayer * Annuity: full amount of annuity payments entitled from an investment of money – capital portion * Amount received from deferred income plans: 1. RESP: life-time contribution limit 50,000, over max. 31 years. Contribution not deductible/ is taxed, accumulated investment income is taxable to beneficiary (<21) as “Educational assistance payments:” a. CESG- Canada educations saving grant: 20% of $2500 of annual contributions to an RESP of children up to 18/ max. of $500 per year per child/ max. CESG per child is $7200/ additional CESG: net income of family <43561, 20% matching of first $500, if NI 43561-87123, 10% b. CLB- Canada learning bond: child bofrn after dec. 31 2004, first CLB of $500, $100 each year including year turning 15. Limit < $2000 per child, can be transferred to RESP before 18 c. Distribution: back to subscriber if hes alive and either beneficiary...
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...0 tax amnesties generate revenue D that the tax authorities would not otherwise collect? Will tax amnesties pro- vide continuing or long-run revenue gains not available from enhanced enforcement alone? And if a change in tax enforce- ment is to occur, in what sense is an am- nesty appropriate in the transition to the new regime? Although twenty-six states have conducted tax amnesty programs since 1982, there has been little analysis of them to date, and almost none based on actual amnesty results.' In this paper we examine individual participation in am- nesties, both from the point of view of what economic analysis would lead us to expect and on the basis of evidence from actual amnesty programs. The empirical analy- sis is based on detailed information gath- ered on a random sample of taxpayers participating in the Michigan amnesty, and on fragmentary evidence we have been *Michigan State University, East Iiming, MI 48824 able to gather on amnesties in other states. In our view, information about the types of taxpayers (or nontaxpayers) who par- ticipate in amnesties and the circum- stances that lead them to participate can be of considerable use in evaluating the effects of amnesties and for predicting the prospects for a federal tax amnesty from the state results. Under a tax amnesty, taxpayers are of- fered an opportunity to come forward dur- ing a specified period of time and pay pre- I 15 unpaid taxes. The carrot viousiy encouraging participation is usually for-...
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...Easy Money They thought they could use her anyway they liked. But she was the one using them. That attitude protected her. She was the one who chose what she did and how she felt. To the world at large they were successful, wealthy, powerful men. Their names appeared on the front pages of the daily business sections, on the stock market stickers, and in the highest income tax brackets. In reality, they were a bunch of pathetic, tragic losers. People who lacked something. People who obviously needed her. (P. 5) Fredrik said "You know, you don't need that much money to start a company. A hundred thousand kronor's enough. I think that's the lowest capital stock. If we come up with a sweet idea, we can totally do it. Try to do some business, register a cool company name, appoint of board and CEO. But above all buy stuff tax free. How awesome would that be?" ( p. 21) Button-down shirts from Paul Smith and Dior and one specially made by a tailor on Jermyn Street in London. . . Two of the guys wore Acne jeans. Gucci on another: intricate designs on the back pocket. . . One was ordered from a tailor on Savile Row in London: visible scenes at the cuffs and with a red silk lining. (p. 22) He let his eyes scan the room. The ceiling was over 10 feet high. Rich mouldings. Two armchairs and a grey couch on top of a real Persian carpet. Four hundred thousand tiny knots tied by some shackled kid. (p. 23) "The Turk, the blatter we buy C from: is he a little Gecko or what?" Referring...
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...1. Some states are withholding tax refunds to help their bottom line including AL, HI, NY and NC – amounting to millions and even billions of dollars owed to taxpayers. Occurred in CA last year when the state gave out IOUs due to budget shortfall of $20 billion 2. This has a huge impact on families as they are already struggling financially – layoffs, holidays, inflation 3. Here we will look at the impact of the problem and possible solutions Body Problem 1. In these difficult times, many states are as financially strapped as the average taxpayer. a. Vacant properties – foreclosures, most prominent, cuts revenue to county and state b. Mismanaged monies – state budgets 2. Withholding refunds allows the state to use the monies for other things a. Collect interest – which is theirs to keep and spend; that is not paid back b. Cover expenses – in other areas of the budget 3. Families depend on this money – especially in these economic times. a. Catch up on bills – monthly expenses b. Pay off debts – credit card and holidays Solutions 1. Individuals should learn more about taxes and their money a. Research tax information and how it applies to your family and income b. Use online tools instead of paying someone – MSN and Yahoo are a great start 2. Workers should monitor how much they are having withheld a. Make sure you are not overpaying throughout the year – i. “Bankrate.com says that last year the average federal tax refund check was $2,700, meaning...
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...How tax strategies impact on the Social Economic Problem? We are going to highlight some social issues and whether the tax strategy is effective in dealing with the issues. The issues discussed include the issue of urbanisation on vacant land, child poverty, inflation and unemployment. Issue 1: Tax Penalty: Eliminate Land Speculation and Vacant Land to avoid Poverty The urbanisation level of 56.25% in South Africa has recorded the world highest level in 2001. The “Apartheid City was a political economy of space which was based on two policies, i.e. racially-based spatial planning and development for some at the expense of others”. Cities were purposely designed to push poor black citizens to the margins of the city. Thus, the black population were materially distanced from advantages normally associated with city life”. With the abolition of Apartheid in 1994, the new government made a commitment to redress these imbalances and inequality and to create cities that are more equal, inclusionary, productive and sustainable. Although 1.6 million houses have been provided since 1994, they have tended to enforce traditional apartheid planning where the poor are still located on the periphery, far removed from employment and economic opportunities. This has resulted in increased urban sprawl and de-densification. Furthermore, the subsidy on public transport was more than double that spent on housing subsidy but the house prices has increased by an average of 20% per year. Land...
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...CHAPTER 2 FINANCIAL STATEMENTS, TAXES, AND CASH FLOWS Learning Objectives LO1 The difference between accounting value (or “book” value) and market value. LO2 The difference between accounting income and cash flow. LO3 How to determine a firm’s cash flow from its financial statements. LO4 The difference between average and marginal tax rates. LO5 The basics of Capital Cost Allowance (CCA) and Undepreciated Capital Cost (UCC). Answers to Concepts Review and Critical Thinking Questions 1. (LO1) Liquidity measures how quickly and easily an asset can be converted to cash without significant loss in value. It’s desirable for firms to have high liquidity so that they have a large factor of safety in meeting short-term creditor demands. However, since liquidity also has an opportunity cost associated with it—namely that higher returns can generally be found by investing the cash into productive assets—low liquidity levels are also desirable to the firm. It’s up to the firm’s financial management staff to find a reasonable compromise between these opposing needs. 2. (LO2) The recognition and matching principles in financial accounting call for revenues, and the costs associated with producing those revenues, to be “booked” when the revenue process is essentially complete, not necessarily when the cash is collected or bills are paid. Note that this way is not necessarily correct; it’s the way accountants have chosen to do it. 3. (LO1) Historical costs can be...
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...the 1990s: assuring upward mobility for working Americans in the new world economy; resolving the great American dilemma of race; restoring a civil society and strengthening the social ties that foster a sense of community; finding America’s proper role in the post-Cold War world; and rethinking the size, shape, and mission of government in an Information Age. The Foundation explores public controversies over cultural questions—race, ethnicity, gender, religion, morality, and civic education—that are often ignored in conventional political discourse. The Foundation’s Project on Tax Reform and Economic Growth works to develop a tax reform program that is consistent with a progressive distribution of the tax burden, and can help promote stronger job and business formation, greater productivity, and higher family incomes. This report is the first of two new reports outlining the essential features of such a tax reform program. The preface contains more information about the four previous reports produced by this project. To order previous reports or additional copies of this report, please call the Foundation at (202) 546-4482. They are also available on the World Wide Web at http:/ /www.dlcppi.org/economic.htm. The Foundation is a nonpartisan research and educational foundation associated with the Democratic Leadership Council and the...
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...Growth Commitment Results 20 13 Impact Partners DATA B OO K DuPont Investor Relations Contents 1 2 DuPont Overview Corporate Financial Data Consolidated Income Statements Consolidated Balance Sheets Consolidated Statements of Cash Flows Selected Additional Data 6 DuPont Science & Technology 8 Business Segments Agriculture Electronics & Communications Industrial Biosciences Nutrition & Health Performance Materials Safety & Protection Performance Chemicals 22 Corporate Financial Data Segment Information Selected Additional Data Inside Back Cover Board of Directors and DuPont Leadership Individual Shareholder Relations: (302) 774-3033 Main Office Number: (302) 774-4994 Internet: www.dupont.com The DuPont DATA BOOK has been prepared to assist financial analysts, portfolio managers and others in understanding and evaluating the company. This book presents graphics, tabular and other statistical data about the consolidated company and its business segments. Forward-Looking Statements This DATA BOOK contains forward-looking statements which may be identified by their use of words like “plans,” “expects,” “will,” “anticipates,” “believes,” “intends,” “estimates” or other words of similar meaning. Although they reflect our current expectations, these statements are not guarantees of future performance, but involve a number of risks, uncertainties, and assumptions. Some of which include: fluctuations in energy and raw material prices; failure to develop and market new products...
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...Denomination- the face value of money 8. electronic fund transfers (EFT)- money transferred from one bank account without any actual money (paper or coins) changing hands 9. electronic funds- 10. encryption- code 11. endorse- approve or sign 12. federal income tax- the tax you pay the federal government on the income you earn 13. Federal Reserve- institution responsible for creating and tracking all of the country’s money 14. FICA (Federal Insurance Contributions Act) – Social Security tax 15. fixed income/expense- income that does not change month to month 16. gross income- pay before withholdings 17. income- all the money that you earn or receive 18. net income- pay after withdrawals 19. payee-the person a check is written to 20. personal Identification Number (PIN)- identification number used with a debit card 21. purchasing power- the number of goods or services that can be purchased with a unit of currency 22. standard of living- a measure of how comfortable you are based on the things you own 23. state income tax- tax determined by individual states on the income you earn 24. surplus-when more money is earned then spent 25. variable income/expense- Activity 1: Research the Federal Reserve System – Create a short PowerPoint to inform – I will...
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...200 500 x 200 = 100,000 Total Incremental Cost *Then, we calculate the Profit - The difference between the Incremental Revenue – The Incremental cost $ 660,000- $ 100,000 = $ 560,000 Incremental Profit Initial outlay=cost of lift + preparing and installing cost =2,000,000 + 1,300,000 = 3,300,000 The before-tax cash flow is then: Year 0: -3,300,000 Year 1-20: 560,000 Before-tax NPV is then -3,300,000 + 560,000 ( 1/1.14 + 1/1.142 +…+ 1/1.1420 ) =-3,300,000 + 560,000 x 6.62313055 =-3,300,000 + 3,708,953.11 = 408,953.11 Because the NPV is positive, it is then a profitable investment. 2. The After Cash Flow = 100%- 40% = 60% Net Income = $ 560,000 60% x $ 560,000 = $ 336,000 = The After Tax Cash Flow The rate of return will drop to 8% The NPV factor for 20 years @ 8% = 9.8181. To find the tax savings on the investment I multiply the investment amount of $3.3 million times the tax rate of 40% to find the tax savings of $1,320,000.00. The NPV of the after tax cash flow is taking the after tax net income ($336,000) 336,000 x 9.8181 = 3,298,881 Tax savings: 3,300,000 x 40% = 1, 320,000 To determine the NPV of the tax savings: Tax savings ($1.32 million) x NPV factor (6.62313055) = $8,742,532.33 =...
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...shares but does not actively work in corporation can draw dividends only. This paper will focus on the active owners of a small business corporation. The analysis will compare the methods and the impact on owners as well as the corporation using each approach. The mix method will also be analyzed and discussed. Basic tax concepts are based on the theory of integration. BDO defines Integration in The Tax Factor, they say that” A tax system is said to be integrated if the same amount of overall tax is paid when the income is earned indirectly through a corporation or directly by an individual.” (BDO Dunwoody, 2009, p.1) According to this theory there should be no difference to the individual regardless of the method chosen. But we know that in order for there to be integration the rates have to be perfectly matched. The tax system in Canada is not perfect and there will be a savings or a cost when drawing dividends (BDO Dunwoody LLP, 2009). Provincial corporate and personal tax rates vary significantly from provinces to province. The corporate tax rates have been very active, consistently dropping in many provinces. Along with tax rates dropping, small business limits have been...
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...( Read full story on taxes ) * Standard rate of excise duty held at 10 percent; no change in CENVAT rates * Personal income tax exemption limit raised to Rs 180,000 from Rs 160,000 for individual tax payers *For senior citizens, the qualifying age reduced to 60 years and exemption limit raised to Rs 2.50 lakh. *Citizens over 80 years to have exemption limit of Rs 5 lakh. * To reduce surcharge on domestic companies to 5 percent from 7.5 percent. * A new revised income tax return form 'Sugam' to be introduced for small tax papers. * To raise minimum alternate tax to 18.5 percent from 18 percent ( Read story ) * Direct tax proposals to cause 115 billion rupees in revenue loss * Service tax rate kept at 10 percent * Customs and excise proposals to result in net revenue gain of 73 billion rupees * Iron ore export duty raised to 20 percent *Nominal one per cent central excise duty on 130 items entering the tax net. Basic food and fuel and precious stones, gold and silver jewellery will be exempted. *Peak rate of customs duty maintained at 10 per cent in view of the global economic situation. *Basic customs duty on agricultural machinery reduced to 4.5 per cent from 5 per cent. *Service tax widened to cover hotel accommodation above Rs 1,000 per day, A/C restaurants serving liquor, some category of hospitals, diagnostic tests. *Service tax on air travel increased by Rs 50 for domestic travel and Rs 250 for international travel in economy class. On higher classes...
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...Equilibrium on the demand side Y* solves the following equation Y = C + I + G + X – IM = 200 + 0.5(Y - 100) + 200 + 100 + 300 – 0.2Y Rearranging, we find Y* = (200 – 50 + 200 + 100 + 300) / (1 – (0.5 - 0.2)) = 1071 In general, Marginal Propensity to Import (MPI) is % of extra $1 of income that is spent on imports, e.g. suppose MPC = 0.9 and MPI = 0.1. This implies that C = 0.9DI + some constant and IM = 0.1Y. Out of each new dollar of income, $0.90 is spent, but of that $0.90, $0.10 is spent on foreign goods. So, Marginal Propensity to Consume Domestic Products MPC domestic = MPC - MPI = 0.90 - 0.10 = 0.8 only $ .80 of an extra $1 in income is spent on domestic goods. MPC domestic is the number we need to accurately calculate the multiplier Multiplier with imports = 1 / (1 – MPC domestic) = 1 / (1 - (MPC – MPI)) in our example, with MPI = .1: Multiplier with imports = 1 / ( 1- ( .9 - .1)) = 1 / (1- .8) = 1 / 0.2 = 5 Example from hw3 Suppose there are only two countries: the US and Mexico. Consider the following data: MPCMX = 0.4 (MPC in Mexico) MPIMX = 0.03 (so 3% of an additional $1 of income in Mexico is spent on the American goods) 1 MPCUS = 0.6 (MPC in the US) MPIUS = 0.1 (so 10% of an additional $1 of income in the US is spent on the Mexican goods) a) Suppose Mexican government increases government spending by $1 billion. By how much does Mexican GDP grow? To solve this we use the Multiplier with imports. MMX = 1/(1 - (MPCMX - MPIMX)) = 1/(1-(0.4 – 0.03)) = 1.587 So in Mexico...
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