...| E-Vade Pays Up | | Case 14-07 | | E-Vade Pays Up | | Case 14-07 | Accounting Seminar Professor: Evangelina vives, phd, cpa, Jd March 14, 2016 Prepared by: Maria Catoni Accounting Seminar Professor: Evangelina vives, phd, cpa, Jd March 14, 2016 Prepared by: Maria Catoni E-Vade Pays Up Case 14-07 E-Vade Pays Up is an online retailer who offers its products to all 50 states. The company is not present physically in any of the states, but does operate distribution centers in some states across the country and does not collect and remit sales tax on sales made in each state. Recently in a court ruling in State X subject all distribution centers within the state to collect and remit sales tax on all sales within the state. E-Vade has a distribution center in State X, therefore, must collect and remit sales tax on all sales within the state. Evade estimated the total amount $60 million of payable to State X for the past five years which includes $50 million for sales tax due, $6 million in interest and $4 million in penalties as of December 31, 2011. On March 15 of 2011 an amnesty program was approved by governor Needmoney providing incentive to voluntary registration to unregistered taxpayers forgiving all interest and penalties on unpaid taxes and 50% of all unpaid sales tax. E-Vade’s management decides to take advantage of the program and completes registration on June 15, 2012. With the amnesty, E-Vade settles its obligation by paying...
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...Psychological motivation of tax payers Tax compliance has been linked heavily with deterrence as the most important compliance-increasing factor but now a days importance of tax morale is being considered as intrinsic motivational toll for the honestly pay taxes. Tax morale , however, depends on the positive interaction of individual taxpayers and the taxing authority through fiscal exchange in a broader arena . Fiscal exchange, for example, may involve adequate provision of public services for the tax payers rather than purely monetary rewards which may be influenced by political decisions or by the way tax authorities treat tax payers in course assessment of the tax liability of an assessee. The relationship between the taxpayers and the taxing authority should be an as an implicit or “psychological tax contract”, under which the taxing authority must balance strategies of deterrence with those of responsive regulation. Tax compliance has many facets. The wealthy tax payers refrain from declaring their income physically earned in foreign countries mostly earned through non declaration or less declaration of commission on foreign trade and the wealth legally in foreign countries in the name of “second home” which is far from providing a comprehensive picture of their income and wealth as well. Tax non-compliance may also be generated through under reporting of income by relatively less wealthy tax payers when they work in shadow economy i.e. when they work in...
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...Case 14-07 eVade Pays Up Synopsys eVade, an online retailer, operates distributions centers in many states including State X. eVade does not collect or remit sales taxes to State X. As a December 31, 2011 eVade has operated in state X for five years. In recent court ruling, States X states that the company would be subject to collect sales taxes. Although the company considers the risk of detection to not be probable, eVade estimated the total amount of sales tax payables for the past five years to be $50 millions plus $6 million in interest and $ 4 million in penalties. On March 15, 2012, State X established a tax amnesty program. Any unregistered taxpayer who voluntarily registers to collect tax will be forgiven 50 percent of all unpaid sales tax and all interest and penalties. eVade decides to take advantage of this program. Issue 1 As of December 31, 2011 What amount, if any, of sales taxes due should recognized in eVade ‘s financial statements? Scope In order to analyze what part of the sections sections of the FASB Accounting Standards Codification applies to the case, ASC 450 section was examined since non-income taxes are often accounted for under the contingencies guidance. Next, ASC 740 section was also studied. ASC 740-10-20 defines “income taxes as domestic and foreign federal (national), state, and local (including franchise) taxes based on income.” Since sales taxes are under the umbrella of local and state, the following step will be defining if eVade...
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...THE PLAN OF AMNESTY: The Solution to Illegal Immigration Michael Mays ENG 102: Composition II February 10, 2012 The Plan of Amnesty How much would it cost to put 10 Million people in busses or airplanes and ship them back to their countries of origin? Is there a better way to deal with illegal immigration in the United States? Is the answer a strict and enforceable amnesty, allowing illegal immigrants to report themselves in order to achieve legal status, or is mass deportation of the estimated 10 million illegal aliens living in the U.S. the solution? A well laid-out, simplified, yet fair and enforceable amnesty plan could solve the multi-billion dollar battle of amnesty, deportation and illegal immigration. The cost of illegal immigration to the United States is estimated in the billions by numerous news avenues but what are the actual numbers and their impact on the United States? “More than 10 million illegal immigrants live in the United States, and 1,400 more arrive every day” (Katel, 2005). This number seems very high and somewhat scary to people but the truth is that “illegal immigrants only make up about 5 percent of the U.S. work force” (Ketel, 2005). Nonetheless, strong actions have been taken by the government to try to put a stop to illegal immigration. Over the past decade or so, billions of dollars have been spent on border-control measures such as walls, fences, and increasing border patrol personnel. From 1993 to 2004, the federal government quintupled...
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...Tax Deduction Definition: Tax deductions pertain to taxes proper which do not include surcharges, penalties, or fines incident to delinquency. These are taxes which have been previously deducted from gross income and a refund of the same was received. Nature: According to NIRC Sec 34 C., taxes are deductible with the exception of those with respect to which the law does not permit deduction. (1) In General. - Taxes paid or incurred within the taxable year in connection with the taxpayer's profession, trade or business, shall be allowed as deduction, except (a) The income tax provided for under this Title; (b) Income taxes imposed by authority of any foreign country; but this deduction shall be allowed in the case of a taxpayer who does not signify in his return his desire to have to any extent the benefits of paragraph (3) of this subsection (relating to credits for taxes of foreign countries); (c) Estate and donor's taxes; and (d) Taxes assessed against local benefits of a kind tending to increase the value of the property assessed. Provided, That taxes allowed under this Subsection, when refunded or credited, shall be included as part of gross income in the year of receipt to the extent of the income tax benefit of said deduction. (2) Limitations on Deductions. - In the case of a nonresident alien individual engaged in trade or business in the Philippines and a resident foreign corporation, the deductions for taxes provided in paragraph (1) of this Subsection...
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...Kimberly Culcay April 16, 2015 Case 14-07 eVade Pays Up Required: 1. As of December 31, 2011, what amount, if any, of sales taxes due should be recognized in eVade’s financial statements? a. The journal entry that should made is: December 31, 2011(record estimates as) Retained Earnings 48,000 Sales Tax Expense 12,000 Estimated Tax Liabilities 60,000 -The recommendation that should be made is to charge 60 million to the estimated tax liabilities; 48,000 to retained earnings and 12,000 to sales tax expense. The 48,000 that is made to the retained earnings is because it must be adjusted retrospectively. In order to be adjusted retrospesctively the 60,000 is divided by the five years and since four years have passed then the adjustment would be made to retained earnings for 48,000. 2. What effect, if any, does eVade’s decision to participate in the tax amnesty program have on the amount recognized as of March 31, 2012? b. Since the confirmation of the program was not made until June 15, 2012, then in March 31, 2012 the company does not record anything because it is a contingency the settlement has not happened yet. On March 31, 2012 there is an agreement that a settlement will happen but an agreement is not enough evidence to record anything, then the settlement will only be recorded when it actually happened. 3. What amounts should be recognized in the financial statements for the $25 million payment on June 15, 2012? c...
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...research and studies have concluded that the death penalty is cruel and ineffective. The death penalty is ineffective in many because ways there have been many cases of wrongful convictions. It does not lower crime, and it is way too costly. The death penalty is morally wrong “an eye for an eye makes the world blind.” The government cannot succumb to the same level of murderers. By killing those that murder, we become the same thing we fear, murderers. Furthermore, there is a chance that someone may be convicted wrongly and executed by the death penalty. According to Amnesty International, “Since 1973, over 130 people have been released from death rows throughout the country due to evidence of their wrongful convictions.” There are many factors that can lead to a false conviction, including inadequate legal representation, perjured testimony and mistaken eyewitness testimony, suppression and/or misinterpretation of mitigating evidence, and political pressure to solve a case (Amnesty International). One such case where there was a false conviction was that of Daniel Wade Moore in Alabama. Moore was originally found guilty for murder and sexual assault of Karen Tipton in 2002, and he was sentenced to death by the judge. However, he was acquitted in 2009 when 256 pages of withheld evidence were finally revealed (Amnesty International). This is a prime example of how the system can convict innocent people; if it were not for the withheld evidence; Moore would have surely been executed...
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...ACTG 493, Accounting Cases, Research and Analysis Group Case 1 Memorandum To: Professor Siyi Li From: Group 4 Date: July 5, 2016 Subject: eVade Pays Up (Deloitte Trueblood Case 14-07) I. Case Description and Key Facts eVade is an online retailer that fulfills its orders by shipping its products directly to customers across all 50 states in the U.S. eVade does not have a brick-and-mortar store presence in any state, but does operate distribution centers in various states, including State X. eVade does not collect or remit sales tax to State X. This practice is consistent with eVade’s practice in all 50 States. In recent court rulings, State X has taken the position that operating a distribution center within the state constitutes nexus and thus would subject any company operating a distribution center to collect and remit sales tax on all sales made within the state. As of December 31, 2011, eVade has operated a distribution center within State X for the past five years. Although the company considers the risk of detection to not be probable, eVade estimates total sales tax payable to State X to be $50 million. In addition, eVade estimates that $6 million in interest and $4 million in penalties are also payable to the state. On March 15, 2012, a tax amnesty program was established by the Governor of State X. The program provides that an unregistered taxpayer who voluntarily registers to collect sales tax prospectively will be forgiven...
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...needing emergency health care regardless of legal status or ability to pay. Undocumented immigrants are overrunning medical institutions with their inability to pay. Uncompensated care threatens the financial viability of a unit’s ability to provide care to other patients. Illegal immigrants are a burden to the United States health care economics. Is it an ethical and moral responsibility for the United States to provide and promote health care to people regardless of legal status? As the debate around immigration continues to be the corner stone of ongoing discussion it is challenging to measure. These concerns compel one to examine the issue closely and identify potential solutions. A possible solution to illegal immigration is “Amnesty.” Amnesty for illegal immigrants refers to...
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...Gestão Estratégica e Comercial 2014/2015 Robin Hood Case Study 1 II. Table Index Table 1. Market Segmentation………………………………………………………………..6 Table 2. PESTL Analysis……………………………………………………………………...7,8 Table 3 Benchmarking ……………………………………………………………………...12 III. Image Index Figure 1. Porter Analysis Diagram …………………………………………………………...9 Figure 2. Porter’s generic Value Chain………………………………………………………10 Figure 3. SWOT analysis……………………………………………………………………...13 2 IV. Index 0. Executive Summary…………………………………………………………………………....4 1. Introduction……………………………………………………………………………………...5 2. Definition of the Market – Market Segment………………………………………………..5,6 2.1. Geographic segmentation…………………………………………………………….....5 2.2. Demographics………………………………………………………………………….....5 2.3. Psychographic…………………………………………………………………………….5 2.4. Behavioural………………………………………………………………………………..6 3. Analysis of the External Environment…………………………………………...…………....6 3.1. PESTL Analysis…………………………………………………………………………..7 3.2. Porter Analysis………………………………………………………………..……..…8,9 4. Analysis of the Internal Environment…………………………………………………….10,11 5.Analysis of the Competitive Position of the Organization…………………………..….11,12 5.1. Critical Success Factors………………………………………………………...….11,12 5.2. Benchmarking……………………………………………………………………….…..12 6. SWOT Analysis……………………………………………………………………...…….13,14 7. Recommendations………………………………………………………………………...
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...University of Santo Tomas Robin Hood A Case Presentation Submitted to Sir Real Carpio So In Partial Fulfillment Of The Requirements In Entre 7 Strategic Management Submitted By: Reyes, Jemima Tamayo, Janelle Taylo, Michael John Teñido, Lenard Turgano, Glerish Verosil, Richard Yabut, Katrina 19 November 2012 I. Statement of the Problem Mismanagement of the lieutenants with the recruitment and training of Merrymen members leading to the scarcity of resources, and incoherency of his goals from the band; this may result in the weakening of the band of Robin Hood that will give the Sheriff a chance to eliminate them. The revolt against the Sheriff had begun as a personal crusade. It erupted out of Robin’s conflict with the Sheriff and his administration. However, alone Robin Hood could do little. He therefore sought allies, men with grievances and deep sense of justice. Later he welcomed all who came, asking few questions and demanding only a willingness to serve. Strength, he believed, lay in numbers. Robin ruled the organization; he makes all the important decisions. He delegated specific tasks to his lieutenants. The increasing number of the band was a source of satisfaction for Robin, but also a source of concern. The fame of his merry men is spreading, and new recruits were pouring from all the corners of England. As the band grew in number the resources they have is not sufficient for all of them like food and shelter. The Sheriff was...
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...Akhmad Yusuf ACCT 351 Research Case 1 1. As of December 31, 2011, what amount, if any, of sales due should be recognized in eVade’s financial statements? According to FASB ASC 450-20-25-2, in order to recognized a loss contingency, two of the following conditions have to be met; information available before the financial statements are issued or are available to be issued indicates that it is probable that an asset had been impaired or a liability had been incurred at the date of the financial statements and the amount of loss can reasonably be estimated. Since eVade considers the risk of detection to not be probable, there is no need to make any provision as of December 31, 2011. However, a suitable disclosure has to be made in notes to financial statement about this loss contingency with an estimated amount of $60 million dollars (Sales tax payable $50 million, interest $6 million, and penalties $ 4million). 2. What effect, if any, does eVade’s decision to participate in the tax amnesty program have on the amount recognized as of March 31, 2012? As of March 15, 2012, eVade company has decided to participate in the tax amnesty program. Therefore conforming to FASB ASC 250-10-50-8 and ASC 250-10-50-9, eVade company should recognize the amount of liability of $25 million dollars in the financial statement on March 31, 2012. This loss however, will not have impact on the 2011 financial statement. 3. What amount should be recognized in the financial statements...
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...Unlawful Burden: Cost of Illegal Immigration on Local Government Abstract What is the cost of illegal immigration today on state and local governments? This has become a hot topic at the federal, state and local levels with a wide variety of opinions. This paper will explore both sides of the issue with a closer look at the state and local impact on taxpayers. Cost of Illegal Immigration Today it is estimated that the annual costs of illegal immigration at the federal, state and local level to be nearly $113 billion dollars, with approximately $84 billion dollars being spent on the state and local levels alone. Recent studies have also estimates that taxes collected from illegal alien workers, both in the above-ground economy and in the underground economy do not come close to the amount of current expenditures. The impact of illegal immigrants on the federal budget differs from their effect on state and local budgets primarily because of the types of services provided by each level of government. The federal government while providing some services requires state and local governments to provide certain services to individuals regardless of their immigration status or ability to pay in order for them to participate in federal programs. This has made most states and local governments bear much of the burden to providing education, health care and law enforcement to individuals living in their jurisdiction. Budgetary Effect of Illegal Immigration The Congressional...
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...! Case 1: 14-07, eVade Pays Up ! ! ! ! 1. As of December 31, 2011, what amount, if any, of sales taxes due should be recognized in eVade’s financial statements? ! According to ASC 450-20-25-2, 450-20-25-6, 450-20-25-7, since eVade considers the risk of detection as not probable, there is no need to make any provision as on 31st of December, 2011. However, suitable disclosure has to be given in notes to financial statement about this loss contingency and amount of loss to be disclosed in the said notes would be $50+ $6+ $4 = $60 million. ! ! 2. What effect, if any, does eVade’s decision to participate in the tax amnesty program have on the amount recognized as of March 31, 2012? ! ! In March 15, 2012 Company has decided to participate in the amnesty program. Therefore, conforming to ASC 250-10-50-9 and ASC 250-10-50-11, eVade should recognize the amount of liability for $25 million in the financial statements on the 31st of March, 2012. the loss will be impacting 2012 financial statements and will not have retrospective impact on the 2011 financial statements. ! ! 3. What amounts should be recognized in the financial statements for the $25 million payment on June 15, 2012? ! ! Regarding the ASC 606-10-55-49 and ASC 250-10-50-8, 2011 financial statements would remain unchanged and $25 million payment would be recorded as charge to the 2012 financial statements. If the amount is already recognized as a liability in March, then...
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...Name: Tutor: Course: Date: Illegal Immigrants Presently there are countless hot subjects on the minds of Americans such as abortion, drone wars, same sex marriage but then one of the most discussed topic is the whether illegal immigrants should be deported back to their legitimate countries. Actually this topic has been politicized for more than a decade now without a sustainable resolution. And so what are the consequences of tolerating illegal immigrants in our country? For this reason in this paper we are going to present the limitations of illegal immigrants in the United States in an organized argumentation justifying why illegal immigrants should be deported back to their countries. Did you know that illegal immigrants cost American taxpayers more than three hundred billion dollars annually. It has been reported that an illegal pregnant woman in the United States receives free medical service that cost at around six thousand dollars. According to a CRS report illegal immigrants were responsible for more than 16, 000 which is twice the crimes commuted by legal immigrants. Additionally the United States Consensus Bureau estimated that there are more than twelve million illegal immigrants in the United States, this is actually equivalent to the combined populations of Arizona, Iowa and New Mexico. Even worse the infiltration of illegal aliens this has resulted in a weighty increase in the rate of unemployment. To tell the truth these illegal immigrants are certainly...
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