...Demibourne Ltd v HMRC Sp C [2005] SSCD 667 (Sp C 486) B had been employed by D Ltd to carry out general maintenance at their hotel. Following his retirement he continued to work in the same capacity but he was treated by his former employer as self-employed on a contract for services. PAYE was not operated and he was regarded as self-employed and had no holiday entitlement. He had a limited choice as to what work he should undertake, and as to the hours that he worked. As a very experienced worker with detailed knowledge of the hotel's infrastructure, he needed little supervision. This had also been the case during his period as an employee before his retirement. In the same way as he had done while an employee, B provided his own tools; a number of which were kept at the hotel. For purchases of goods, B either used his own credit card and was later reimbursed by the hotel, or the purchase was in the name of the hotel. B issued invoices in respect of each period worked. On occasions, he carried out a small amount of work for other persons. B reported his earnings to HMRC on the basis of being a self-employed individual, and paid tax accordingly. Following an employer compliance visit, HMRC concluded that B should be treated as employed rather than self-employed. Determinations were issued to collect PAYE and Class 1 NIC, which HMRC deemed should have been deducted. It was held by the Special Commissioners that Mr B’s status after his retirement remained that of an employee....
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...The Roles and Functions of Law Cathi Stark LAW/421 December 23, 2013 John Koenig The Roles and Functions of Law The purpose of this paper is to inform about the roles and functions of the law. It will also show and define the function and roles of law as they apply to business and society. There will also be examples from real life experiences of the writer, myself. This week in class we were instructed to review the Commerce Powers from chapter two in our text book. There was a case review within the chapter that specifically outlines some of the roles and functions of the law. This case, Cipollone v. Liggett Group, Inc., et al., 505 U.S. 504 (1992), will be referenced through this paper. The basic function and roles of the law in business and society is for the benefits of the people and the protection of their rights. Laws are created to ensure we are safe and protected in all aspects of our lives, both personal and professional. In business, laws are designed to regulate activity at the local, state and federal levels. In case of Cipollone v. Liggett there is discussion of statute and enactment of laws. This case is based on a suit that Cipollone took against the cigarette manufactures, Liggett for the death of his mother. The study states that “Congress chose specifically to regulate a certain type of advertising (tobacco), federal law is supreme to any state law that attempts to regulate that same category of advertising.” (Melvin, 2011, p. 33) The Constitution...
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...1) Which criteria need to be met by the claimant in a case involving wrongful dismissal? INTRODUCTION According to Ashgar Ali Mohamed (2004), "At common law, the employer-employee relationship is contractual; the employer may terminate the contract of employment by serving appropriate notice, as expressed in the contract or implied reasonable notice. Wrongful dismissal occurs when the employee is dismissed without notice or with inadequate notice". SUPPORTING CASE: MASSEY V CROWN LIFE INSURANCE CO (1978) According to HM Revenue and Customs UK, "Mr. Massey was the manager of a branch of the Crown Life Insurance Company of Canada from 1971 until 1973; he was an employee of the company. It paid him wages from which it deducted tax, NICs and graduated pension contributions. He also made contributions to the firm’s pension scheme". Moreover, in 1973 by mutual consent "the company engaged him on a self-employed basis under a new agreement. His duties under this new agreement were almost identical to those under his previous contract of service. The only real differences were that he no longer made pension contributions and the company paid him gross without any deductions for tax etc. This arrangement continued until 1975 when the company dismissed him. Mr. Massey then claimed unfair dismissal". DECISION OF THE CASE The Industrial Tribunal decided that Mr. Massey was not employed under a contract of service and therefore could not claim unfair dismissal. The EAT upheld...
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...contractor,and if she is an employee she will be protected under the ERA 1996. It is important to consider common law rulings in order to establish whether Arabella qualifies as an employee under the 1996 Act.Arabella was labelled as an independent contractor and self-employed for tax puporses,it should be noted that in Ferguson v Dawson the labels of the claimant being called self-employed did not affect the parties true relationship which was one of a master and servant. Instead the court will also consider other factors such as the fact that the defendant could tell the claimant what to do and where to do it,in this case Blaye Mortgage Brokers provides a vehicle for Arabella and requires her to visit customers in South of England.As a result the court might label Arabella as an employee under the ERA 1996 by considering the factors mentioned above and the labels (independent contractor and self-employed) might be considered a sham at the court’s discretion. The highlighted upper paragraphs illustrated how to address the law which called ‘ILAC’ please peer in mind that there are no repeated sentence about the issue you just write one sentence or maximum two demonstrating the issue then you write the whole course work by this way “ Law which mean cases in the slides I provided you with or Employment rights Act and after writing the case you right the facts of that case which you think it could help in the issue. You basically follow the upper paragraph method....
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...Assignment One Part One Question Two The numbers of self employed workers has grown significantly in the last twenty years and, in 2008, amounted to approximately four million people, compared to over twenty seven million employees. Over two thirds of the self employed have no employees themselves, and are dependent upon using their own skills and labour. (Julie Bevan, Barriers to Business Start Up: A study of the flow into and out of self employment. Department of Employment Research Paper no 71) Determining whether a worker is an employee or not is the first action of any court during a tribunal. This is very important as employers have a large amount of liabilities to their employees, but not to their other workers, for example self employed or sub contractors. Certain laws are dependent on the nature of the employment for example The Working Time Regulations 1998 (2002 IRLR 96) refers in reg. 4(1), to a workers working time, whilst the Maternity and Parental Leave etc regulations 1999 only refers to employees. There are various benefits to workers being employees. An Employee pays far higher national insurance contributions than self employed workers; however this gives employees the rights to state benefits relating to sickness, unemployment and pension rights. Whereas self employed workers are not entitled to any of these benefits. Self-employed workers also have no rights to holiday pay or allowances, therefore anytime they do spend not working directly impacts...
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...Employee is a person who works under a contract of service whereas self-employed is a person who works under a contract for services (Melville, A. 2011 p.84). As a self-employed person, they enjoy a wider range of tax benefits and deductible expenses when compared to employees. Self-employed are allowed to pay tax by installment and pay tax much later than employees, who normally pay income tax under PAYE system. The main criteria to distinguish two types of contracts of services or for services will be as follows: 1. Control. Self-employed people have control over their work than employee who is unable to choose whether or not to do certain work. 2. Remuneration and financial risk. The Employees will still continue to receive monthly salary or wages regardless if their employer is making profit or loss in the business, and the employees do not risk their own capital in the business. In contrast, self-employed people are being paid a separate fee for each of the jobs being carried out. They may make profit or loss or even lose their capital if they fail in their business. 3. Equipment. Self-employed do provide their own equipment but employees do not. 4. Work performance and correction. The client does not need to pay extra in order get the job satisfactory by self-employed. Whereas the employees get paid for the original work and the corrections towards the mistake done. 5. Holidays and sickness. Self-employed people do not get paid when on holiday or ill, they only get paid...
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...Propositions to be proven to take a deduction under IRC section 162(a): -Must be expenditures for education (including research undertaken as part of an educational program) -the education must: - maintain or improve skills required by taxpayer in their employment or other trade or business OR -meet the express requirements of the taxpayers employer, or the requirements of applicable law or regulations, imposed as a condition to the retention by the taxpayer of an established employment relationship, status, or rate of compensation -the education must not be: -education for Minimum education requirements, or -education for qualification for a new trade or business I. Citation: Rev. Rul. 74-78, 1974-1 C.B. 44 II. Facts: The taxpayer, a dentist engaged in general dental practice, returned to dental school for...
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...1.0 INTRODUCTION In this 21st century the distinction between an employee and an independent contractor or self employed is difficult but an imperative one. An employee may be said to be an individual employed under a contract of employment and there is existence of employment relationship, while an independent contractor of self employed are persons entering a contact for service. For instance, if I require the services of a security guard from an outsourcing company, they security guard would be an employee of the outsourcing company and under a contract of service with the company. However I am at the option of hiring a fellow that is not employed to be my security guard, in this situation he is an independent contractor and he is providing a contract for service. Employment relationship exists between an employee and employer but not with independent contractor. The employer and the employee have certain relationship that is present between the employer and the independent contractor. The differences are as follows 2.0 EMPLOYMENT PROTECTION Termination of employment There are several ways by which contract of employment can be terminated by either the employee or employer which are. 2.1Termination by Notice Notice to terminate an employment contract can be given by both the employer and the employee provided the time is reasonable and the number of notice. (s.86) [ ] it also provides the minimum period of notice to be given by the...
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...responsibilities of the tax practitioner in the UK tax environment 3 Executive summery 3 1.1 UK Tax Environment 3 1.2 The role and responsibilities of the UK Tax Practitioners 6 1.3 The tax obligations of tax payers or their agents and the implications of noncompliance 8 Task 2: Personal Tax Liabilities for Individuals and Partnerships 9 Introduction 9 2.1 a) Calculation of the relevant income and allowances for individual 9 2.1(b): Calculation of the relevant income, expenses and allowances of Mr. Thomas (self-employed): 10 2.2 Calculation of the taxable income and tax payable and tax payment due date for self employed 11 2.3 The relevant documentation and tax return 13 Conclusion 14 Task 3: Corporation Tax Liabilities for Companies 15 Introduction 15 3.1 Calculation of the chargeable profit for the company 15 3.2 Calculation of the tax liability of the company and when it would be due 16 3.3 Explanation of how income tax deductions are dealt with 17 Conclusion 17 Task 4: Capital Gains Tax for Individuals and businesses 17 Introduction 17 4.1 Identify the chargeable asset/s for capital gains tax 18 4.2 Calculation of the amount of capital gains/losses and the amount of taxable gains/losses 18 4.3 Calculation the amount of capital gains/losses and how much amount to pay as a capital gain tax liability 19 Conclusion 19 REFERENCES 20 Task 1: Duties and responsibilities of the tax practitioner in the UK tax environment Executive...
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...Queensland University of technology | Employee-Contractor Case Study | By Monil Mehta | | Word Count: 1450 | 8/21/2014 | n8911941 | 1.0 Introduction The main purpose of this report is to distinguish and provide evidence to the fact that Anne Parish, a former employee at Ace Accident Insurance in Cairns was treated unfair by her former employer. In employment relations all employees should be treated and remunerated fairly, irrespective of them being an independent contractor or an employee (Fair Work Act, 2009). In this report it shall be determined whether Anne Parish was an employee or an independent contractor to Ace Insurance Co. using the multi-factor test. Further it shall also be argued upon whether Anne was dealt fairly or not. 2.0 The Multi- Factor Test The Multi- Factor test is important because it determines the entitlements for a worker as an independent contractor or an employee. The test started to be used by the legislature and federal courts from 1990’s to determine and decide upon, if an individual or group of individuals is an employee or a contractor (Stewart, 2009). The multi-factor test takes into account certain criteria’s and facts to determine whether a person is an Employee or Independent contractor . This facts fall into 3 main category namely behavioral control, financial control and type of relationship (Megerdomian, n.d). Behavioral...
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...Mark Hancock, a self-employed attorney owns his own law practice as an unincorporated sole proprietorship. Hancock is having to pay $18,000 in interested on tax that he owes because in 2012 the IRS disallowed several business deductions that he used in 2010 and 2011. He is now having to pay the deficiency, assessed penalties, and $18,000 in interest on the tax he owed. Mark Hancock is wondering if he can deduct the interest he owes in the current year. Sec 162 states “Section 162(a) allows a deduction for all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business. Section 262, however, provides that no deduction is allowed for personal, living, or family expenses.” Sec. 163 states “There shall be allowed as a deduction all interest paid or accrued within the taxable year on indebtedness”. The case Kikalos v Comm., in 1997 Nick and Helen Kikalos underreported their income and they owed more than tax then they had paid. They petitioned with the court to deduct their interest payments from the previous years that was filed incorrectly. They owed more than $300,000 from penalties. The court denied their request because it is a personal expense not a business expense because underpayment does not constitute as a business expense. Even though Mark Hancock’s interest of $18,000 is in relation to his business, it is considered non-deductible personal interest because it was an underpayment that was owed due to filing his...
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...FORM OF AMENDED AND RESTATED LIMITED PARTNERSHIP AGREEMENT OF BLACKSTONE HOLDINGS I L.P. Dated as of 2007 THE PARTNERSHIP UNITS OF BLACKSTONE HOLDINGS I L.P. HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED, THE SECURITIES LAWS OF ANY STATE, PROVINCE OR ANY OTHER APPLICABLE SECURITIES LAWS AND ARE BEING SOLD IN RELIANCE UPON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH LAWS. SUCH UNITS MUST BE ACQUIRED FOR INVESTMENT ONLY AND MAY NOT BE OFFERED FOR SALE, PLEDGED, HYPOTHECATED, SOLD, ASSIGNED OR TRANSFERRED AT ANY TIME EXCEPT IN COMPLIANCE WITH (I) THE SECURITIES ACT, ANY APPLICABLE SECURITIES LAWS OF ANY STATE OR PROVINCE, AND ANY OTHER APPLICABLE SECURITIES LAWS; AND (II) THE TERMS AND CONDITIONS OF THIS AMENDED AND RESTATED LIMITED PARTNERSHIP AGREEMENT. THE UNITS MAY NOT BE TRANSFERRED OF RECORD EXCEPT IN COMPLIANCE WITH SUCH LAWS AND THIS LIMITED PARTNERSHIP AGREEMENT. THEREFORE, PURCHASERS AND OTHER TRANSFEREES OF SUCH UNITS WILL BE REQUIRED TO BEAR THE RISK OF THEIR INVESTMENT OR ACQUISITION FOR AN INDEFINITE PERIOD OF TIME. Table of Contents | Page | ARTICLE I | | | | DEFINITIONS | | SECTION 1.01. Definitions | 1 | | | ARTICLE II | | | | FORMATION, TERM, PURPOSE AND POWERS | | | | SECTION 2.01. Formation | 11 | SECTION 2.02. Name | 11 | SECTION 2.03. Term | 11 | SECTION 2.04. Offices | 11 | SECTION 2.05. Agent...
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...Corporation Scenario Paper LAW 421 2015 Part A The Sarbanes-Oxley Act of 2002 is a United States Federal law that set new or improved standards for all U.S. public company boards, management, and public accounting firms. SOX was created as a reaction to a number of major corporate and accounting scandals such as Enron in 2001. These sections of the bill cover responsibilities such as public corporation’s board of directors, criminal penalties for misconducts, and essentially defines how public corporations are to comply with the law. The SOX was meant as both an economic and ethical stabilizer so that corporate managers would be held accountable for their business practices. In a 2012 article by Curt Finch, it is said by his personal opinion that a person should always become SOX compliant if they’re interested, or may ever become interested, in being a partner with a large corporation or expanding their company into a corporation. By doing so it will increase your credibility and give you a base line from which to operate while moving forward within your business, which in turn will require less of a transition if you eventually wish to continue to grow your company (Finch, 2015). The largest, most obvious reason for his recommendation to become SOX compliant is the fact that it is the law, never mind that it is good for you or for your business, you may be facing jail time without your company being SOX compliant which truly should be motivation enough. Even for smaller...
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...The purpose of this tax research problem is to solve the following scenario presented by Rupert, Pope, & Anderson: “Mark Hancock is a self-employed attorney who operates his law practice as an unincorporated sole proprietorship. In 2012, the IRS disallowed several business deductions he took in 2010 and 2011. In addition to paying the deficiency and assessed penalties, he also pays $18,000 in interest on the tax owed. Can he deduct that interest in the current year?” (p. 7-45). This is a highly controversial subject that has been contested many times over the years. “Prior to the Tax Reform Act of 1986, the tax court in several cases had deemed an income tax deficiency to be an ordinary and necessary business expense for purposes of determining a taxpayer's adjusted gross income, net operating loss carryover, and net operating carryback, so long as that deficiency was attributable to the ordinary operation of the taxpayer's business” (Rovner, 2015, para. 6). Therefore, businesses could deduct the interest they paid for IRS penalties from previous years as a business expense before 1986. The decision of whether or not a business could deduct interest incurred as a result of IRS imposed penalties was brought to the spotlight in the 1990’s. “On their income tax returns for 1992 and 1994, Nick and Helen Kikalos deducted as a business expense the interest they paid on tax deficiencies that had been assessed for prior years. The Internal Revenue Service disallowed the deduction...
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...in the above situation is whether Ahmad have any contract made with Suria Supermarket. The law consist in the above situation is Invitation to treat (ITT). As you known, invitation to treat does not mean amount to an offer. Section 2(a) of the Contract Act 1950 defined as something which is capable of being converted into an agreement by its acceptance. There is a different between Invitations to treat with an offer. A proposal must be distinguished from an invitation to treat (ITT) so that the proposal can be the only way to attract any party to enter the contract. Examples of Invitation to treat which is Good displayed in shop windows and shelves, Advertisement, Auctions, Catalogues and Price lists. Based on the above situation, the law of Invitation to treat of display of goods is exist which it is not a proposal to sell and invitation not capable of being accepted, In shop , owner merely holds himself prepared to consider proposals made to him at the suggested price, so an offer to buy is made when the customer puts the goods in a trolley or takes the item off the shelf, but the contract only made when the person bring the item to the cashier’s desk and pay for the item. Section 2 (a) of the Contract Act 1950 provides that when one person signifies to another his willingness to do or to abstain, he is said to make a proposal. In the case of Pharmaceutical Society of Great Britain v Boots Chemist Ltd we can know that the display of goods with the price tag is just an invitation...
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