...CLASS 1.1 Important concepts Entities – tax versus legal • Tax entities o People, partnerships, joint venture, companies … are considered to be entities for the purposes of calculating income tax. • Legal entities o Companies, which have separate legal personalities, are legal entities. Income flows • Income should be considered as a cash flow stream, where timing is important. • The question is, when the income recognised as earned or deducted (because tax delayed is tax denied)? CLASS 1.2 Patterns of taxation Income tax • Income tax is a progressive system. • Income tax is mainly a rich person’s tax once franking credits are taken into account to produce an “effective tax rate”. • Wealthy people pay less tax overall by reducing their tax burden through using the lower rate paid on capital gains and other tax minimisation schemes. • Total tax as a percentage of GDP is lower in Australia compared to many other countries across the world. However, these results must be considered in light of the high level of income (where it may not be as much of a burden to pay high taxes where there is high income) and quality of public goods provided in counties such as Sweden (which has the highest total tax rate as a percentage of GDP). Justifications for taxation Why do we need taxes? • Public goods argument: the government can provide some benefits to society better than anyone else. Examples include defence, and law and order. • Market failure...
Words: 34901 - Pages: 140
...Winds of Change Sonya Marquis BUS440-801 Introduction Wind energy is a renewable resource, which means that future supply will not be affected by current use. The rising concerns about global warming, pollution, and depletion of natural resources makes wind a viable and logical source of energy for the near and distant future. There are many advantages to wind energy; it is a sustainable energy source that is non-polluting. With a 30 percent annual increase, wind is the world’s fastest-growing bulk power electricity source. Montana has a bright future in wind energy. The American Wind Energy Association ranked Montana’s wind-energy potential in the top five in the nation. Currently, the state has several utility-scale wind farms in operation. History of Wind Energy Wind energy has been used by civilizations throughout time. As early as 5000 B.C., wind energy propelled boats up and down rivers. Simple windmills pumped water in China in 200 B.C. Wind energy technology and its applications continued to grow and diversify throughout the ages. By the late 19th century, settlers of the New World were using windmills to pump water, and eventually, to generate electricity. Small windmills were used until the late 1920s to bring electricity to rural Americans. Farm and ranch communities in Montana used wind generators that produced direct current (DC) electricity that was often stored in batteries. However, these systems were short-lived due to the Rural Electrification...
Words: 1879 - Pages: 8
...within 3) Overseas contract worker – income within 4) Alien – income within 5) Domestic Corporation – within & without 6) Foreign Corporation – within x------------------------------------x 2. IMPORTANT BASIC TERMS IN GENERAL (NIRC §22) 2.1 Taxable Year ( Calendar year 2.2 Fiscal Year ( Accounting period of 12 months ending on the last day of any month other than December 2.3 Securities ( Proof of what Corporation owes, i.e. shares of stock, etc. 2.4 Ordinary Income ( Any gain from sale or exchange of property, not a capital asset or property 2.5 Gross Income - §27(A) & (E)(4) ( Domestic Corporations shall be imposed an income tax of 35% 2.6 Ordinary Loss ( Any loss from the sale or exchange of property which is not a capital asset ( Ordinary losses may only be charged against ordinary gains 2.7 Capital Assets - §39(A)(1) ( That which is NOT an ordinary asset ( Ordinary assets: 1) Stock in trade or inventory for sale 2) Depreciable items 3) Real property used in trade or business 4) Goods or property for the employee’s convenience ( Capital losses may only be charged against capital gains 2.8 Taxable Income - §31...
Words: 16206 - Pages: 65
... CONTENTS Page 1 1.1 1.2 1.3 1.4 1.5 1.6 Introduction Geography and History Population Political System Languages Currency Economy 1 1 1 1 2 2 2-3 2 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 Business Entities and Accounting Companies Branches Representative Offices Sole Proprietorships Partnerships Limited Liability Partnerships Joint Venture Audit and Accounting Requirements Record and Filing Requirements 3 3 3-4 4 4 4-5 5 5 5 6 3 3.1 3.2 3.3 Finance and Investment Exchange Control Sources of Finance Investment Incentives 6 6 6-8 8 CONTENTS Cont’d 4 4.1 4.2 4.3 4.4 Employment Regulations and Social Security Contributions Employment Passes and Dependent’s Passes Engagement and Dismissal Trade Unions Social Security Contributions Page 8 8-9 9 9 10 5 5.1 5.2 5.3 5.4 5.5 Taxation in Singapore Companies Individuals Expatriates Indirect Taxes Other Taxes 10 10 - 14 15 - 18 18 - 19 19 - 20 21 Appendices 1 2 3 4 5 Tax incentives Withholding tax rates Corporate tax rates Personal income tax rates Personal tax reliefs 22 - 28 29 - 30 31 32 33 Doing Business in Singapore 1 1.1 INTRODUCTION Geography and History The Republic of Singapore is located at the southern tip of the West Malaysian Peninsula and consists of the island of Singapore and more than 50 smaller islands, most of which are uninhabited. The main island is 42 kilometers from east to west and 23 kilometers from north to south with an area of about 700 square kilometers. Singapore was founded...
Words: 11578 - Pages: 47
...report focuses on providing a guide to the potential bakery businessman in terms of starting a bakery in Australia. Important matters covered in this report are choosing the appropriate business structure for establishing a bakery, vital bakery business registrations and few important specifics of entering into the bakery business. Matters for consideration Business Structures Starting or buying a bakery involves many indispensable steps. The foremost priority when starting a bakery business is choosing the business structure keeping in mind the needs and the budget of the business. There are four main types of business structures used by small-medium sized business in Australia (ATO & ATC 2012). • Sole-traders • Partnerships • Trusts • Companies The appropriate types of business structures for the bakery business would be sole proprietorship and partnership. Both these structures are the simplest ways to structure the bakery business. Sole Trading is the simplest business structure, a sole trader is a single person operating a business under his/her own name. The advantage of this structure is that it is easy and low costs are required to set up. On the contrary the disadvantage is that the individual is personally responsible for...
Words: 1069 - Pages: 5
...Tax Midterm Chapter 1: Taxation- Its role in decision making Taxation and the financial decision process * Taxation is a controllable cost * Tax cost = cost of doing business * Analyzed to determine which actions or activities have a greater/lesser impact on the resulting tax cost * Each alternative= different impact on the amount of tax and the timing of the payment of tax * Even if marketing decision = direct effect on the long term tax cost of the firm → thus on profits and value * Tax= important on any decision making * Tax costs are relevant when alternative strategies are being considered * Cash flow (CF) exists only on an after-tax basis * All CF= after tax * NPV compared and ranked * Shows the actual value of the individual/corporation * Analysis can’t be of value unless the real tax impact is included * Alternative action to minimize the tax impact * After tax = % of interest x (1 – Tax rate) * 5% dividend on the equity of a “public corporation” = not deductible to the business → after tax = 5% (real cost) * Net value to individual investor subject to 45% tax rate = 3.6% (after applying dividend tax credit) The fundamental income tax structure and its complexity Taxpayers * Individuals * Corporations * Trusts | Business & investment structures * Proprietorship * Corporation * Partnership * Limited partnership * Joint venture...
Words: 6661 - Pages: 27
...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...
Words: 4848 - Pages: 20
...for the Foreign Investor in U.S. Real Estate— If Planning Comes First by Michael Hirschfeld and Shaul Grossman Appeared in January 2001 edition of RIA’s Journal of Taxation © Copyright 2003 RIA. All rights reserved. WG&L Journals INTERNATIONAL Opportunities for the Foreign Investor in U.S. Real Estate—If Planning Comes First Author: By Michael Hirschfeld and Shaul Grossman MICHAEL HIRSCHFELD is a partner, and Shaul Grossman is an associate, in the New York City office of the international law firm of Dechert. Mr. Hirschfeld is a member of the ABA Tax Section’s committees on Real Estate (of which he is the past Chair), Foreign Activities of US Taxpayers, and US Activities of Foreigners & Tax Treaties, among others, and has written for The Journal on many occasions. Copyright © 2000, Michael Hirschfeld and Shaul Grossman. The complexities of FIRPTA and the even broader withholding scheme that backs it up require that a nonresident acquire a thorough understanding of the rules before making an investment in real estate. The choice of whether to use an entity—and which one—or to hold the investment directly, as well as the type of investment—equity or debt—can have significant and sometimes expensive consequences. Edited By Sanford H. Goldberg, J.D., and Herbert H. Alpert, J.D. The global economy is a fact of life at the start of the new millennium. One consequence is that cross-border investments in real estate will expand significantly. Twenty years ...
Words: 15903 - Pages: 64
...THE HONG KONG POLYTECHNIC UNIVERSITY AF5206 HONG KONG TAX FRAMEWORK Unit 14 – Anti-avoidance Provisions Coverage 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Tax avoidance and Tax evasion Principles of anti-avoidance rules Anti-avoidance provisions in IRO Section 61 Section 61A Doctrine of fiscal nullity Section 20 Section 61B Section 39E Section 9A (Type I service company arrangement) Type II service company arrangement Advance Ruling Tax planning and ethical issues Basic tax planning principles Basic techniques of tax planning 1 TAX AVOIDANCE AND TAX EVASION Tax avoidance - Attempt to obtain tax benefit (i.e. reduction, elimination or postponement of tax) by legal means Tax evasion - Failure on the part of taxpayer to supply full and correct information relevant to an assessment of tax because of deliberate attempt or negligence - An offence punishable by a fine and/or imprisonment 2 PRINCIPLES OF ANTI-AVOIDANCE RULES Westminster principle - “Every man is entitled if he can, to order his affairs so that tax attaching under the appropriate Act is less than it would otherwise be.” [Lord Tomlin in IRC v. Duke of Westminster (1935)] Choice principle - Established in Australian case law 2014 MPA_U14 Anti-avoidance.doc 1 August 2014 - Taxpayers are free to create favourable situations which will attract tax consequences for which the legislation specifically provides - If the legislature confers a choice on the taxpayer so as to whether or not...
Words: 5479 - Pages: 22
...PART I INTRODUCTION SCOPE OF TOTAL INCOME AND RESIDENTIAL STATUS INCOME EXEMPT FROM TAX PART II INCOME FROM SALARIES INCOME FROM HOUSE PROPERTY CAPITAL GAINS PROFITS AND GAINS OF BUSINESS AND PROFESSION INCOME FROM OTHER SOURCES TAX COMPUTATIONS PART III INTRODUCTION TO TAX PLANNING & TAX RELIEF TAX MANAGEMENT TECHNIQUES TAX COMPLIANCE MATTERS PART IV ESTATE PLANNING Detail Contents PART 1 CHAPTER 1 INTRODUCTION 1. Income Tax Mechanism in India 2. Basic concepts 1. Person 2. Assessee 3. Assessment year 4. Previous year 5. Rates of Tax 6. Accounting Method 7. Capital and Revenue Receipts 8. Income 9. Casual Income 3. Permanent account number CHAPTER 2 SCOPE OF TOTAL INCOME AND RESIDENTIAL STATUS 1. Definition of total income 2. Residential Status 3. Importance of residential status 4. Basic rule for determining residential status 1. Individual 2. HUF 3. Firms and association of person 4. Company 5. Every other person 5. Scope of income as per residential status 1. Resident 2. Not ordinarily resident 3. Non resident 6. Various kinds of income 1. Income received in India 2. Income deemed to be received in India 3. Income accruing or arising in India 4. Income deemed to be accrue or arise in India CHAPTER 3 INCOME EXEMPT FROM TAX 1. Understanding exempted income 2. Classification of exempted income 1. Fully...
Words: 102684 - Pages: 411
...Exchange Background ................................................... 6 Exchange Controls ........................................................ 6 Foreign Ownership of Business .................................... 6 Foreign Ownership of Real State .................................. 6 A2 - Government Attitude and Incentives ................... 7 C Government Attitude to Foreign Investment ................. 7 Foreign Investment Government Financial Incentives .................................. 7 A3 - Tax System ..................................................................... 7 C1 - Exchange Controls .................................................... 14 Remittance of Dividends and Profits ........................... 14 Corporate Income Tax Rates ......................................... 7 Remittance of Interest .................................................. 15 Individual Rates and Expatriate Taxation ..................... 7 A4 - Financial Reporting and Audit Requirements .. 8 A5 - Other Matters of Concern to Foreign Investors 8 Remittance of Royalties and Fees ................................ 15 Repatriation of...
Words: 37093 - Pages: 149
...Taxation System Work? • The Income Tax System in Canada • Types of Income • Calculating Income Tax Payable • Taxation of Investment Income • Tax-Deductible Items Related to Investment Income How are Investment Gains and Losses Calculated? • Disposition of Shares • Disposition of Debt Securities • Capital Losses • Tax Loss Selling What are Tax Deferral Plans? • Registered Pension Plans (RPPs) • Registered Retirement Savings Plans (RRSPs) • Registered Retirement Income Funds (RRIFs) • Deferred Annuities • Tax-Free Savings Accounts (TFSA) • Registered Education Savings Plans (RESPs) • Pooled Registered Pension Plans (PRPPs) What are Tax Planning Strategies? Summary 25•2 © CSI GLOBAL EDUCATION INC. (2013) LEARNING OBJECTIVES By the end of this chapter, you should be able to: 1. Describe the features of the Canadian income tax system, calculate income tax payable, and differentiate the tax treatment of interest, dividends and capital gains (and losses). 2. Calculate capital gains and capital losses and assess strategies for minimizing tax liability. 3. Describe and differentiate the different tax deferral plans and their uses. 4. Identify basic tax planning strategies and discuss their advantages. TAXES AND INVESTMENTS It is often said that there are only two certainties in life: death and taxes. Taxes are a reality of life for Canadians and they affect many personal and investment decisions. Complicating matters is the differential tax rates for income, dividends, and...
Words: 12347 - Pages: 50
...KPMG Taseer Hadi & Co. Chartered Accountants Investment in Pakistan Investment in Pakistan An Introduction Investment in Pakistan is a publication prepared by KPMG Pakistan to provide information on a number of subjects relevant for investment planning or doing business in Pakistan. The guide includes an overview of the economy and a summary of various investment opportunities in identified sectors which could be of interest for investors. This guide provides a summary of the rules, regulations and tax laws applicable in Pakistan. Although covering many relevant areas, it should not be considered as exhaustive since it has not been designed to provide complex and detailed information required for decision-making in relation to investments. This publication incorporates the regulations effective as of 31 August 2013. For our latest publications please browse our web site; www.kpmg.com.pk. © 2013 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Glossary BOI CY FCY FDI FY GDP GoP KSE PKR SBP SECP USD Board of Investment Calendar year Foreign Currency Foreign Direct Investment Fiscal year ended 30 June Gross Domestic Product Government of Pakistan Karachi Stock Exchange Pakistan Rupee State Bank of Pakistan Securities & Exchange Commission of Pakistan United States Dollar ...
Words: 29730 - Pages: 119
...Country Commerce Japan Released September 2011 The Economist Intelligence Unit 750 Third Avenue New York NY 10017 USA Economist Intelligence Unit The Economist Intelligence Unit is a specialist publisher serving companies establishing and managing operations across national borders. For 60 years it has been a source of information on business developments, economic and political trends, government regulations and corporate practice worldwide. The Economist Intelligence Unit delivers its information in four ways: through its digital portfolio, where the latest analysis is updated daily; through printed subscription products ranging from newsletters to annual reference works; through research reports; and by organising seminars and presentations. The firm is a member of The Economist Group. London Economist Intelligence Unit 26 Red Lion Square London WC1R 4HQ United Kingdom Tel: (44.20) 7576 8000 Fax: (44.20) 7576 8500 E-mail: london@eiu.com Hong Kong Economist Intelligence Unit 60/F, Central Plaza 18 Harbour Road Wanchai Hong Kong Tel: (852) 2585 3888 Fax: (852) 2802 7638 E-mail: hongkong@eiu.com New York Economist Intelligence Unit The Economist Group 750 Third Avenue 5th Floor New York, NY 10017, US Tel: (1.212) 554 0600 Fax: (1.212) 586 0248 E-mail: newyork@eiu.com Geneva Economist Intelligence Unit Boulevard des Tranchées 16 1206 Geneva Switzerland Tel: (41) 22 566 2470 Fax: (41) 22 346 93 47 E-mail: geneva@eiu.com This report can be accessed electronically as...
Words: 52449 - Pages: 210
...Annual Report 2009 2 Contents 2 3 5 6 7 8 9 10 12 13 48 49 53 57 Chairman’s Review CEO’s Review Reserves and Production Directors Declaration Consolidated Income Statement Consolidated Statement of Comprehensive Income Consolidated Statement of Financial Position Consolidated Statement of Changes in Equity Consolidated Statement of Cashflow Notes to the Financial Statements Audit Report Corporate Governance Statement Shareholder Information Corporate Directory NZOG Annual Report 2011 Chairman’s Review During the year ended 30 June 2011 the company faced a very challenging time in dealing with the adverse flow-on impact of its investments in Pike River Coal Ltd (PRCL), whose mine near Greymouth suffered from explosions and a tragic loss of lives in November 2010. However, despite the resultant losses on NZOG’s investments in PRCL, which have been provided for in the financial statements, NZOG still ended the year in a very sound financial position and having an expanded outlook overall for its oil and gas operations. sands. There is potential for a sizeable discovery. NZOG holds a 90% interest in PEP 51311 but is amenable to farming down its equity to around 50%. As an adjunct to these and other New Zealand activities, which still form the core of NZOG’s operations, the company has now acquired interests overseas, through the award of a prospecting permit in offshore Tunisia and a joint study area in onshore Indonesia (Sumatra). In Tunisia the Diodore permit encompasses...
Words: 29017 - Pages: 117
