...The issue is whether Laurence Wong (LW) is a resident of Australia for tax purposes from the period 1st of July 2009 until the 30th of June 2012, given that LW has been living and working abroad in Singapore from July 2009. Residence is an important consideration for this case as under s6-5(2) of the ITTA1997 if LW is a resident his income from all sources will be taxable in Australia whereas if he is a foreign resident his assessable income would only include income from Australian sources, e.g. his Australian listed share dividends and his rent from the rental of his family home. The complicated facts are that LW signed a 3-month contract on the 1st July and then went on to sign a 3-year contract on the 5th of October 2009. In May 2012, LW returned to Australia due to family illness. Rules A person is a resident if he/she resides in Australia under Section 6(1)(a) of ITAA1936 and includes a person i) Whose domicile is in Australia, unless the Commissioner is satisfied that the person’s permanent place of abode is outside Australia. ii) Who has actually been in Australia, continuously or intermittently, during more than one half of the year of income. iii) Who is: a) A member of the superannuation scheme established by deed under the superannuation act 1990; or b) An eligible employee for the purposes of the Superannuation Act 1976; or c) The spouse, or a child under 16, of a person covered by sub-subparagraph (A) or (B) Section...
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...litigated in the case in question using the tax research steps outlined in Appendix A of your text. * Compare the American Institute of CPAs’ (AICPA) Statements on Tax Standards (SSTS) and the Treasury Department Circular 230 rules to practice before the Internal Revenue Service (IRS). Suggest which document creates better guidance in the preparation of tax returns and written advice provided to taxpayers. From the e-Activity, evaluate the importance of the principal issue litigated in the case in question using the tax research steps outlined in Appendix A of your text. Determine the Facts: The respondent, Marshall R. Jones, determined deficiencies in Alacare Home Health Services Federal income tax of $136,895 for 1995 and $58,726 for 1996 and accuracy-related penalties under section 6662(a) of $27,379 for 1995 and $11,745 for 1996. Identify the issues: As a Medicare-certified home health care agency, Alacare must comply with accounting guidelines contained in the Medicare Provider Reimbursement Manual Publication. The respondent determined that Alacare’s policy of expensing assets that cost less than $500 was not a proper method of accounting, and that Alacare must capitalize the cost of the disputed assets over their useful lives. Locate applicable authorities: Medicare Provider Reimbursement Manual (HCFA Publication 15-1): Guidelines for Capitalization of Historical Costs and Improvements Costs of Depreciable Assets. Income Tax Regulations: SEC 446(a) General Rule...
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...1) Which of the following (according to Charles Fombrum) is not one of the four determinants that influence a company's reputation? a. Credibility. b. Reliability. c. Profitability. d. Responsibility. 2) The 5 E's of the accounting profession in Texas are Ethics, Enthusiasm, Education, Examination and Experience. a. True b. False 3) The P in CPA stands for Public? a. True b. False 4) The difference between what the public thinks it is getting in audited financial statements and what the public is actually getting is known as: a. Credibility gap b. Expectations gap c. Audit gap d. Stewardship gap e. None of the above 5) Which of the following is not a trend described in Chapter 1 as having an impact on the ethics of business? a. Directors’ legal liability b. Management’s stated intention to protect reputation c. Auditors’ legal liability d. Management’s assertions to shareholders on the adequacy of internal controls e. Management’s stated intention to manage risk 6) Which corporate report discusses subjects that include environmental, health and safety, philanthropic and other social impacts? a. Corporate annual report b. Corporate social responsibility report c. Corporate quarterly report d. Corporate stakeholder report e. Corporate ethics committee report 7) The goal of the State Board of Public Accounting is...
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...Tutorial 1 Dr. Nakha Ratnam Somasundaram Sales tax and service tax Question 1 What do you understand by sales tax? Answer 1 It is form of indirect tax imposed on consumers and collected by enterprises. It is accounted by the enterprises to the Royal Malaysian Customs and Excise Department. Question 2 What is the scope of charge of the sales tax under the Sales tax Act of 1972 (as amended)? Answer 2 Section 6 imposes the tax. Under that section, sales tax shall be charged and levied on all taxable goods: a) Manufactured in Malaysia or acquired under the provisions of section 9 by a taxable person and sold used or disposed of by him, otherwise than by sale or disposal to a licenses manufacturer authorized by the Director General to acquire such goods without payment of tax b) Imported into Malaysia by any person for home consumption It is a single stage tax. A single stage tax means it is imposed only once. And it is imposed upon acquiring manufactured products from manufacturers or by Customs when the goods are imported from outside Malaysia into Malaysia. At the manufacturing stage, the tax is imposed at the output level. The taxes are collected and paid over to the Customs by the manufacture. In the case of import the importer would pay the tax to the Customs. However a manufacturer acquiring a product form another manufacturer for additional processing would not be liable for sales tax and where such taxes are paid, it could be recovered...
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...Current Tax System • Why do we have an income tax? o To fund government programs • What other types of taxes are individuals and/or professionals subject to? o Estate tax, gift tax, self-employment tax, social security, medicare, unemployment taxes, excise, sales & use, property • How do tax laws affect decisions made by individuals? Businesses? o May determine how much an individual decides to gift or donate, how and where they choose to invest their money, whether they set up a trust or estate, do or do not purchase particular goods (eg might avoid cigarettes because of the excise tax, but may buy an electric vehicle for the tax benefits). May also be a factor in determining where they move or whether they take a job in a city/state with greater taxes. For businesses, it can help determine how they choose to structure (sole proprietor vs partnership vs LLC vs S Corp vs C Corp), whether they choose to pursue a particular product line (for example, if the government is offering a tax relief program for a particular product such as a crop or energy efficient technology), and where they decide to hire their workers. • What are the ethical guidelines that will apply to individuals in tax practice? o Don’t take chances in the hope that the return will not be audited. Every action taken should be justifiable. Inform clients of risks involved in the position that is taken if it is not successful. Allowed to use client estimates if they are reasonable. Inform client if receipts...
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...| | (NOTE: This is a CPAexcel simulated Exam Question, not AICPA licensed Material) Tax preparer Margie is wondering: Why should CPAs make reasonable efforts to obtain and provide for the client appropriate answers to all questions on a tax return? | A. The question may be important in determining taxable income or loss, so its omission may detract from the quality of the return. | | B. The CPA is obligated to sign the preparer's declaration, which states that the return is true, correct, and complete. | | C. A and B. | | SSTS No. 2 lists both A and B as grounds for attempting to answer all questions on a return. | | D. None of the above. | Question #2 (AICPA.151005REG-BL) | | | A client suing a CPA for negligence must prove each of the following factors except | A. Breach of duty of care. | | B. Proximate cause. | | C. Reliance. | | C is the best answer, for reliance is not an element of the negligence cause of action. | | D. Injury. | Question #3 (AICPA.082031REG-1 C) | | | Which of the following is true? | A. Client Tim told CPA Cho that he wished to take a particular deduction that Cho knows must be documented. Cho should ask Tim whether he has kept, or could obtain, the relevant documents. | | SSTS No. 3 provides that a CPA should make "appropriate inquiries" to determine whether a condition for deductibility or other tax treatment has been met. | | B. CPA Harris asked Client Shavell why the rental income...
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...Review and implementation of measures that improve Tax Examinations Abroad As part of the continuous improvement cycle, tax administration compliance officials should, based on the recommendations contained in final reports and after consultation with the tax examinations coordinator and other compliance personnel, seek to implement changes to tax examinations compliance procedures and programs. Any material changes to the tax administration’s tax examinations procedures should be brought to the notice of the competent authorities of their tax treaty partners as soon as possible. It follows that any training materials/courses on tax examinations abroad procedures are updated to reflect these changes. 4.14 Minimum Attributes of an Exchange...
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...Dear, Mr. Brown Thank you again for choosing Alison Tax & Advisory CPA for your tax services this year. I understand that every tax choice is important to run a business and appreciate the opportunity to advise you about the home office tax deduction. A self-employer who works from home is eligible to take a home office tax deduction, if the requirements set out by the Internal Revenue Service under Section 280A(c)(1) are meet. The home office must be used on a regular and exclusive basis for business purposes in order to be eligible for the home office tax deduction. Section 280A(c)(1) defines the “regular use” of the home office as the part of the home that is used on a continuing basis to meet with clients. Section 280A(c)(1) further defines the “exclusive use” of the home office as the portion of the home that is used only for business purposes at all times. Once the IRS has determined the regular and exclusive use requirements have been meet a tax deduction is allowed for the use of the home office. Based on the facts you have provided me, your home office space is used for personal and business purposes. Therefore, you do not meet the exclusive use requirement and are not eligible to claim a home office tax deduction. Although, the use of the room by your relatives is infrequent, the IRS defines this as a non-business use of the home office space. If you wish to claim a home office tax deduction in the future, you can set aside a portion of the home to be used solely...
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...I want to make my parents proud because of me and to fulfill my dreams. To build a big house for my family and go to other country with them. 1. Who are Rich Dad and Poor Dad to the author? Describe and give their significance to the book. * Rich Dad, he is highly educated and intelligent; he had Ph.D. and completed four years of undergraduate work in less than two years. Poor Dad, he never finished the eighth grade. They were both successful in their careers, working hard all their lives. Both earned substantial incomes. Yet one struggled financially all his life. The other would become one of the richest men in Hawaii. Both were strong, charismatic and influential. Both men offered Robert Kiyosaki an advice, but they did not advise the same thing. 2. What is RAT RACE? Do you want to be in it? * Is an endless, self-defeating, or pointless pursuit. It conjures up the image of the futile efforts of a lab rat trying to escape while running around a maze or in a wheel. I don’t want because I hate doing something that I’m not happy and enjoying. 3. What did the author meant by “LIFE PUSHES ALL OF US AROUND?” * Each push is life saying ‘Wake up. There’s something I want you to learn.’ It means life is giving us challenges in life that we need to fight, for us to learn something new that will help us to be successful. 4. What is the message behind “Avoiding one of life’s biggest traps.”? - The message behind “Avoiding one of life’s biggest traps” is...
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...Table of Contents Introduction 2 1.1 Describe the UK tax environment to Shawn 3 1.2 Analyse the role and responsibilities of you as the tax practitioner in the contexts of UK tax system. 7 1.3 Explain the tax obligations of tax payers or their agents and the implications of non-compliance 9 2.1 Calculate relevant income, expense and allowances 10 2.2 Calculate taxable amounts and tax payable, for employed and self-employed individuals, and advise on payment dates 11 2.3. Complete relevant documentation and returns 12 Conclusion 13 Reference 14 Introduction UK tax environment are many problems for a British citizen who has plans to start a new business in the UK. Being a new businessman and had no direct background about the UK tax systems rules and procedures, Based on the information in the scenario, we research in the UK tax environment according to the factors following: the environment, the role and the responsibility of the UK tax practitioners, tax system, explain the tax obligations of tax payers or their agents and the implications of non- compliance, Calculate the relevant income, expenses and allowances, Calculate taxable amounts and tax payable, for employed and self-employed individuals, and advise on payment dates for the above cases, complete the relevant documentation and tax returns. 1.1 Describe the UK tax environment to Shawn 1.1.1 UK tax legislation: The tax which is regulation set to apply for citizen in UK with the...
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...Research Paper #1 – Williams Aero Flight Services Introduction I have been hired as the CPA Tax Advisor for Williams Aero Flight Services. Several tax issues have been brought to my attention and it is my job to advise the management of Williams Aero Flight Services on their recent tax issues. Relevant Facts Williams Aero Flight Services is a charter carrier operating out of Manassas, Virginia, that flies both passengers and cargo. Prior to 2011, their primary business was the transport of corporate executives. Currently, their primary customer for both the cargo and passenger divisions is the U.S. Military, which represents 10% of their total revenue. Williams Aero Flight Services’ fleet consists entirely of jets. A typical, properly maintained jet aircraft has a useful economic life of thirty years. Frequent and necessary maintenance must be performed on the engine and airframe in order for the jet to last all thirty years. The aircraft engines and auxiliary power units must be serviced every 24 to 60 months, based on usage. In order to service an engine and power unit, the engine must be removed from the aircraft and sent to a third party specialized maintenance company that maintains and repairs the engines and power units. The annual cost of these repairs, resulting from the age of the fleet and the annual usage, is $2,000,000. Annual revenue is approximately $40,000,000. During a preliminary meeting, the IRS claims that the jet engines and power units...
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...Dear, xxxx Thank you again for choosing Aaron Tax & Advisory CPA for your tax services this year. I understand that every tax choice is important to run a business and appreciate the opportunity to advise you about the home office tax deduction. A self-employer who works from home is eligible to take a home office tax deduction, if the requirements set out by the Internal Revenue Service under Section 280A(c)(1) are meet. The home office must be used on a regular and exclusive basis for business purposes in order to be eligible for the home office tax deduction. Section 280A(c)(1) defines the “regular use” of the home office as the part of the home that is used on a continuing basis to meet with clients. Section 280A(c)(1) further defines the “exclusive use” of the home office as the portion of the home that is used only for business purposes at all times. Once the IRS has determined the regular and exclusive use requirements have been meet a tax deduction is allowed for the use of the home office. Based on the facts you have provided me, your home office space is used for personal and business purposes. Therefore, you do not meet the exclusive use requirement and are not eligible to claim a home office tax deduction. Although, the use of the room by your relatives is infrequent, the IRS defines this as a non-business use of the home office space. If you wish to claim a home office tax deduction in the future, you can set aside a portion of the home to be used solely for...
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...Abstract: Jonathan (taxpayer) was notified by the IRS that he should appear at the local IRS district office with support for his 2009 travel and entertainment expenses as well as his charitable deductions. Jonathan advised his tax preparer that he was not going to make the meeting and elected and appointed, Sue Johnson, CPA to go in his place. What penalty or penalties could Jonathan be subject to? What about the Sue Johnson, CPA? Second, depending on the outcome and if Jonathan does not agree with the findings of the IRS, what are his options? The Internal Revenue Service performs audits to verify certain variances within the tax laws and codes. And at times it is necessary for these agents to meet with the taxpayer for further explanation on certain deductions or expenses to verify that the taxpayer is taking the proper deductions and that the tax laws and codes set forth by the Treasury Department is being followed. There are however, extreme circumstances that would prevent the taxpayer to meet with the agent i.e. not available or not proficient to answer questions such as a disability. A taxpayer at that point has little to no control over the decisions made and based on the determination would have to appeal the findings. The taxpayer in this case elected to not appear for the meeting because it was a beautiful day and wanted to go skiing rather than the prescheduled appointment. In this case, Jonathan should fill out and sign a Form 2848 authorizing...
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...1. What other factors might be considered when valuing the deferred tax asset account? Following are some factors that might be considered in evaluating the deferred tax asset amount that will be recognized. • Evidence of sufficient future taxable income, exclusive of reversing temporary differences and carryforwards, to realize the benefit of the deferred tax asset. • Evidence of sufficient future taxable income arising from the reversals of existing taxable temporary differences (deferred tax liabilities) to realize the benefit of the tax asset. • Evidence of sufficient taxable income in prior year(s) available for realization of an operating loss carryback under existing statutory limitations. • Evidence of the existence of practical, reasonable tax planning strategies under management control which, if implemented, would permit the realization of the tax asset. (Accounting Financial Tax). 2. As the accountant, is it your place to question management’s ability to turn a...
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...IoD Big Picture Summer 2013 Tax avoidance: remedies and collateral damage SNAPSHOT • The term ‘tax avoidance’ needs to be carefully defined and is not the same as ‘tax abuse’ or ‘tax evasion’. This article considers where avoidance becomes abuse and, in particular, the advantages and disadvantages of some measures to control it. Tax avoidance: remedies and collateral damage Richard Baron, former Head of Taxation at the IoD, and Stephen Herring, his successor, consider the proper use of the term ‘tax avoidance’, where avoidance becomes abuse, and the pros and cons of some measures to control it. • The basics of UK tax law are simple, but difficulties arise from complex transactions that require specific rules – which in turn create opportunities for aggressive tax avoidance and abuse. ax avoidance has rarely been out of the news over the past two years, although the term has also rarely been properly defined and has often been muddled both with tax abuse and, even more incorrectly, tax evasion. Commentary has focused on two separate assertions that tax avoidance is taking place. Firstly, claims that some multinational groups of companies, generally US-owned, have undertaken planning which might involve recognising profits in one country rather than another that has higher corporation tax rates. Secondly, introducing planning arrangements to secure better treatments of financing costs, intellectual property rights and undistributed profits by locating business...
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