Module 1 is an introduction to the Income Tax Act (ITA). It reviews the reason for its existence and the principles that govern its interpretation. It then focuses on the ITA structure and explains how to search for and interpret its provisions. The module concludes with the study of two basic concepts: first, who must pay tax in Canada; second, what is the concept of income for purposes of the ITA. • The most desirable characteristics of an income tax are: o horizontal equity o vertical equity
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also increasing the cost of borrowing to the private sector and further reducing investment ability. So by cutting expenditure, this is avoided, enabling the private sector to invest more and provide longer term economic growth and increasing future tax returns. Furthermore, it can be argued that the public sector in some countries, such as the UK, is too big. As the public sector is less profit-centric, their allocation of
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Complete economics dictionary Complete Economics dictionary A B ABNORMAL PROFIT The surplus of revenue over costs enjoyed by a monopoly that is in excess of profit the same firm could expect to earn if it faced competition for its market. BALANCE OF PAYMENTS An accounting record of all monetary transactions between a country and the rest of the world. ABSOLUTE ADVANTAGE The ability of a country or region to produce a good or service at a lower average cost per unit than any
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Pursuant to Japanese Liquor Tax Law, spirits exported to Japan were discriminated against as a substantially lower tax was levied on “shochu” than on whisky, cognac and white spirits. For example, the tax rates per litre of pure alcohol levied on "shochu A" and shochu B" are lower than the corresponding rates on "whisky/brandy" and "liqueurs" described in the table below:[1] | |Current Tax Rate per Litre of Pure Alcohol |Tax Discrimination Index
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Income for Tax Purposes Case A: Income Under ITA 3(a) Employment Income $46,200 Business Income $13,500 Property Loss (see ITA 3(d) below) NIL $59,700 Income Under ITA 3(b) Taxable Capital Gains $14,320 Allowable Capital Losses ($23,460) NIL Balance from ITA 3(a) And (b) $59,700 Subdivision e deductions ($4,800) Balance under ITA 3(c) $54,900 Deduction Under ITA 3(d): Property Loss ($2,350) Net Income for Tax Purposes
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short-run fluctuations we developed in each day. Chapter 10. We’ll see how deliberate In Japan, stories like this are common. During the 1990s the Japanese government What you will learn in this chapter: changes in government spending and tax policy affect real GDP. We’ll also see how ® What fiscal policy is and why it is an important tool in managing economic fluctuations ® Which policies constitute an expansionary fiscal policy and which constitute a contractionary fiscal
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An ageing population means the government needs to spend more (on pensions and health care) it will also receive lower income tax. If the government does nothing it will experience a rise in the structural budget deficit. This has many problems 1) Resource crowding out. government borrow from private sector so private sector have less to spend and invest. Furthermore the private sector is usually more efficient than government 2) Financial crowding out. To Borrow more money the government
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POE -help the private sector formulate an industrialization and it plan, so that there would be more ‘made in the Philippines’ products. -strengthen the “study now, pay later” program. -give farmers their own land, boost irrigation and push for mechanization, and look for a program to make fishing, farming and livestock propagation profitable for the farmers and the youth. - look for ways to lower power costs and resolve the frequent brownouts in Mindanao. And find ways for the development
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i) Concept of public finance The concept of public finance deals with the budgeting techniques of the income and expenditures of a public sector organization, normally a government or federal organization. Public finance is also termed as government finance and is an important sector of economics . The concept of public finance focuses on these relationships and functions may be considered special as they include: Procuring public goods, arranging and funding various transfers (particularly in the
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Actions taken by the government can slow growth if things are moving too fast or stimulate growth if the economy is in a lull. Walmart, a major retailer in the United States, is one of the many organizations that are influenced by fiscal policies. Tax rates and spending can affect the organization’s ability to sell goods and services as well as create jobs for the economy. Based on fiscal policies implemented and economic predictions, there are a few recommendations that can be made to Walmart in
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