... income for most of the developed countries in the world. Multinational corporations with subsidiaries in different countries use loopholes in the laws to reduce their tax liabilities. Needham (2013) has defined tax avoidance as “seeking to minimize a tax bill without deliberate deception but contrary to the spirit of the law”. Firms evade to Tax Havens or use various methods such as transfer pricing and corporate debt-‐equity to avoid the payment of taxes. Palan (2002) defines tax havens as “countries that have enacted tax legislation especially designed to attract the formation of branches and subsidiaries of parent companies based in heavily taxed industrial nations.” The author also claims that nearly half the stock of money in the world either passes through Tax Havens like Ireland or reside...
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...Individual Paper - Assignments from the readings In this short essay I will try to explain Limited Liability Corporation and partnerships. I will also try to put in perspective if I were to establish my own business what would I choose and why would I choose one over the other. In order to explain this we must first know what is Limited Liability Corporation and liability partnership. According to smallbusiness.chron.com a liability corporation or company is LLC owners, called "members," can manage their businesses or hire professional managers. In addition, LLCs enjoy a lot of flexibility. For instance, they can have as many members as they like, and corporations are allowed to be members. LLCs enjoy freedom from the state-mandated membership and management reporting requirements that corporations have. Most important, LLCs do not have to pay taxes. Instead, their profits and losses are passed through to their members' individual tax returns in the same way as a partnership. As a result, members enjoy the advantages of avoiding the "double taxation" of corporations as well as receiving tax relief from the poor performance of their LLCs. Also according to smallbusiness.chron.com a liability partnership is LLPs have the same tax advantages of LLCs. They cannot, however, have corporations as owners. Perhaps the most significant difference between LLCs and LLPs is that LLPs must have at least one managing partner who bears liability for the partnership's actions. With an...
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...use of a combination of Irish and Dutch subsidiary companies to shift profits to low or no tax jurisdictions. In this essay I am going to explore this tax avoidance technique and give a step-by-step guide as to how large MNC’s such as Google use it. First I am going to give an overview of this tax avoidance technique and why it is advantageous for an MNC to use. This technique is just one of a class of similar international tax avoidance schemes that has allowed MNC’s to dramatically reduce their overall corporate tax rates. It in essence involves sending profits through one Irish company, to a Dutch company and finally to a second Irish company headquartered in a tax haven. These techniques are most prominently used by technology companies because these firms can easily shift large portions of profits to other countries by assigning intellectual property rights to subsidiaries abroad. Each step in the ‘double Irish with a Dutch sandwich’ technique involves arranging transactions between subsidiary companies to take advantage of the idiosyncrasies of varied national tax codes. For decades MNC’s have been taking advantage of the ‘quirk’ in the Irish tax law that allowed a company based abroad to be registered as an Irish company. For example, a company based in a tax haven such as Bermuda can be an “Irish” company and subsequently lead to firms legally avoiding paying billions of dollars in corporation tax. In 1988, the UK introduced laws to prevent the use of UK incorporated...
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...explaining within this essay. One sociological explanation for the unequal distribution of wealth and income in contemporary Britain is because it is necessary for the maintenance of society. This is argued by functionalists such as Davis and Moore who suggest that inequality in wealth and income is very significant due to the fact that some jobs are seen as more functionally important than others. As well as this, they believe that meritocratic values such as wages need to be imbalanced in order for the most capable people to have the best and highest jobs. A prime example of this would be of road cleaners who would earn about 9,000 a year where as a C.E.O of a computing company earns over millions a year. This links to contemporary Britain because it portrays how income and even wealth is unevenly shared out between proletariats and the bourgeoisie and most importantly it indicates at how low-paid wages would be the result of poverty. This theory can be criticised because it infers to some jobs being more important than others which is not true as every job in society contributes in helping society progress and become better, in this case being a road cleaner would be just as important as being a C.E.O of a retail company. Similar to functionalism, the new right would argue that wealth and income inequality is functional for society because it helps the rich to neglect and refuse many things which help society and which keeps society up and running e.g taxes which massively goes...
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...with the author’s intent of portraying the main theme through the two brother’s story. The brother’s start off by being polar opposites in their pursuit “to survive post-Korean War Harlem (Savery 167) in his own way” (Sherard 692). The narrator tries to have a respectable living by “teaching algebra and ignoring the struggles” of his childhood, his brother, and even his connection to the community. Sonny, his brother, goes down a darker path in his quest to get away from Harlem through “musical membership,” which drives them further apart initially (Sherard 692). Sonny penetrates the barrier between them with a letter from prison. At the time they start to reconnect, the narrator also starts to hold the burdens of the community instead of “avoiding” them (Sherard 696). Sherard starts to find the bridge between the brothers reconciliation and music after narrator hears of his father’s death and begins to “understand Sonny’s personal story...traditionally related through the blues” (697). At the time Sonny runs away from Isabel’s house, the absence of his music “ demonstrates a...
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...throughout the duration of the discussion: Labour’s party leader, Miliband, expectedly is passionate about mansion tax and as is Klass. Yet, it must be taken into consideration the fact that the conversation between Miliband and Klass has external participants: the live audience, ITV viewers and other members of the panel; this therefore may affect one’s performance. Although their performances seem “sincere” they could potentially be “cynical” (Goffman, E. (1959) The Presentation of Self in Everyday Life. Garden City, NY: Doubleday). For example, as Miliband’s purpose of being on “The Agenda” is to promote the Labour party’s policies and therefore may portray a cynical performance in order to get votes in 2015’s general election. In this essay, I will be analysing the non-verbal communication: such as gestures and eye contact, as well as verbal language including such things as jargon in order to examine the interpersonal communication within this discussion. “Assertiveness is pertinent to interactions between different groups of professionals, especially where the...
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...Accounting 3230 Fall 2014 Part I: Leonard Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 20X2 and 20X3. | 20X2 | 20X3 | Projected benefit obligation, January 1 | $ 600,000 | | Plan Assets(fair value and market-related value), January 1 | 410,000 | | Pension Asset/Liability, January 1 | 190,000 CR. | | Prior Service Cost, January 1 | 160,000 | | Service cost | 40,000 | $ 59,000 | Settlement rate | 10% | 10% | Expected rate of return | 10% | 10% | Actual return on plan assets | 36,000 | 61,000 | Amortization of prior service cost | 70,000 | 50,000 | Annual Contributions | 97,000 | 81,000 | Benefits paid to retirees | 31,500 | 54,000 | Increase in projected benefit obligation due to changes in actuarial assumptions | 87,000 | 0 | Accumulated benefit obligation at December 31 | 721,800 | 789,000 | Average service life of all employees | | 20 years | Vested benefit obligation at December 31 | | 464,000 | (a) Prepare a pension worksheet presenting both years 20X2 and 20X3 and accompanying computations and amortization of the loss (20X3) using the corridor approach. (b) Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year. (c) For 20X3, indicate the pension amounts reported in the financial statements. Part II: The accounting records of Scotty inc show the following data for 20X2....
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...Ethical in accounting practice Ethics is a guideline for us to do what is right and what are wrong, but being unethical is not against the law, to be ethical in accounting practice there are 3 roles Trust, confidentiality and legal repercussions. Trust-Accountants must be worth trusting for understanding the law and legal aspects of the accounting issues. Confidentiality-In a company accounts would have the most information (client’s information, each colleague’s salary, company’s trading record) so it is really important for an accountant to keep their account documents confidential. Legal repercussions- accountants must be really careful for their work and understanding that the consequence of breaking the law if they are not careful for their work. (http://www.ehow.com/facts_6821517_role-ethics-accounting.html) In some companies they will have a person who is called an ethicist, an ethicist is for setting standards for accounting ethics for a company, to become and ethicist, he or she must have a degree on business law and philosophy, an ethicist also play the role of an consultant, the ethicists could answer question like “Can I consider buying a birthday present for our company’s friendly driver who would drive us home even his working time is off as an allowance for entertainment?” not only answering question the ethicist will so advice how to react on different situations, such as misleading financial analysis in order to obtain personal gains, misuse...
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...financially sound. According to some philosophers, including Marx, the public must be protected from and by all organizations in their respective capacity; this includes the state and MNCs that, more often than not, have more power than the states in which they operate. Take, for instance, an MNC in El Salvador, profiting from the affordability of the production process, profiting from the lack of limitations within this one ‘weak-state’ and profiting from the sales accomplished overseas. The state of El Salvador is much weaker than an MNC such as Nike; in this example then, the MNC has the obligation to better the conditions of the state, not deprive it, aid or neglect its social responsibility to uphold ethics while practicing enterprising. This essay questions the reasoning behind Donaldson in Rights and Kinds of Obligations, arguing that O’Neill has a more fair system of distributing the right aid for the protection of all rights. The main question then is: what is the moral obligation of MNCs in the global context after having reviewed both Donaldson and O’Neill’s articles? Summary O’Neill in Agents of Justice asserts that to be capable is not the same as saying that one has a capacity. Capacity is different from capability in that it is innate; it is a skill within us that could (if allowed) be used for the (in) justice of mankind. Capability is the freedom to realize the achievements through this capacity, meaning, if one has the capacity but is not...
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...Internal And External Factors Controlling Ryanair Commerce Essay The following report analyses how internal and external factors control to the strategy that Ryanair Plc is following. This report undertakes a detailed study of Ryanair which include a brief outlining of the company’s products and services. Mission, vision and values of the airline will be also explained. It evaluate company’s current strategy and the management of that strategy. It also gives a brief evaluation of Ryanair’s financial structure as well as an environmental analysis of the European airline industry and how this affects Ryanair. Each section of the following report represent the key findings. Introduction to company section includes Ryanair’s background, mission and vision statements, Corporate Social Responsibility policy, company’s stakeholders. External environment section include SWOT analysis. This analysis explain Internal (Strengthens and Weaknesses) and External (Opportunities and Threats) factors. Furthermore, PEST analyse is described. In order to understand company’s profitability in relevance to the competitors, the Porter’s Five Forces framework is used. In Financial sector the turnover , profit margins, operating profit, current ratio, solvency ratio, gearing ratio and the comparability of these during 2006-2008 period is explained. Using the Ansoft’s growth matrix the main strategic direction that Ryanair follow was indentified. The methods of development such as low cost, no-...
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...FNCE90013 Case Studies in Finance SUBJECT GUIDE July – August, 2015 Prepared by George Kester Department of Finance Faculty of Business and Economics Objective To develop an understanding of applied corporate finance including financial analysis and forecasting, financing sales growth, short-term versus long-term financing, capital structure policy, capital investment analysis, cost of capital, and company valuation. The course will be experiential and focus upon selected Harvard Business School cases describing actual business situations faced by financial managers, requiring analysis, and decision-making. Professor Professor George W. Kester Texts Robert C. Higgins, Analysis for Financial Management (10th Editon), McGraw-Hill Irwin, 2012. Cases You should read and analyze each assigned case. The cases are available on the LMS page for FNCE90013. Readings Selected readings will be distributed during the course. Group Study It is recommended that you form yourselves into small study groups for the purpose of routinely reviewing and discussing assigned before each class. Your learning experience will be enhanced by such interaction and you will be better prepared for class. Presentations Copies of the PowerPoint slides of the presentations are available on the LMS page for FNCE90013. It is recommended that you print them out prior to each class. Attendance The class attendance will be taken. Participation ...
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...Throughout his lifetime he wrote or edited sixteen books, over four-hundred articles, and would write essays for those not in the field. Several key concepts which include “Tobin’s q,” “Tobit” regression model, and the “Tobin tax”. James Tobin in 1955 became the director for the Cowles Foundation for Research in Economics and the same year was awarded the John Bates Clark Medal by the American Economic Association. Let a little time pass in in 1961 James Tobin was approached by President Kennedy whom invited him onto the Council of Economic Advisers. Also, Tobin was an academic consultant to the Board of Governors of the Federal Reserve and to the U.S. Treasury Department. In 1971, he served as president of the American Economic Association and the following year was selected as a member of the National Academy of Sciences. Only nine years later...
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...AS Micro Essays These are some suggested AS Macro Economic essays. The essays are from different exam boards. In practise they ask similar questions. There are different ways to answer questions. But, all these answers contain enough material to get the top grade. Whenever the question requires evaluation, the essay contains the necessary critical distance. Note: These essays are for revision purposes giving suggestions for how to answer questions. Don’t try to pass them off as your own work. AS Micro Essays 1.Evaluate the case for and against governments intervening to try to stabilise the price of copper, for example, through setting up a buffer stock scheme. 2.Evaluate advantages and disadvantages of various methods of government intervention to correct market failure arising from aircraft emissions. 3. Discuss the likely effects on the retail market for coffee if there is a large increase in city centre rents. 4.In the UK, students face increasing tuition fees. Discuss the benefits and costs to society of abolishing all tuition fees. 5.Discuss three policies to reduce the level of cigarette smoking amongst under 21s. 6.Discuss the extent to which governments should subsidise companies who are developing cars which run on clean fuels such as hydrogen? 7.Discuss whether the government is mistaken to worry about monopoly power? 8.Discuss the advantages and disadvantages of the government intervening in agricultural markets? 9.Discuss the effects...
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...MODULE TITLE: Microeconomics, Introductory PROGRAMME: BA in BE TITLE OF ESSAY: Passengers in air, supply and demand analysis Air transportation is very valued type of transport by people, especially because it is time-saving, when you are travelling to countries, which are long-distance from each other, and mostly, it is the only way to get an access to geographically isolated areas. Moreover, air transportation enables the access to people, capital, markets, and resources. As, a result, the availability of air transportation services effectively increases in most of the countries. It has also an effect on economic activity. Different factors dominate the relationship between economic and air transportation. Because of these unique factors, the nature of air transportation flows differs among the economics. In this paper, I would like to analyze what are the main factors of demand and supply that have an impact on air transportation market in Eurozone area. Like any other business, the airline industry is impacted by changes in its external environment. Prices have a strong impact on demand of airline industry. As I can observe on the graph, the inflation for traveling by airplanes is falling down, while the prices of tickets are rising up, and when the prices of tickets are going down, the inflation is again starting to increase. There are several factors that have influence on price dynamics; political, legal, economical, social, and technological. Knowledge...
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...BRUNEL BUSINESS SCHOOL COVERSHEET FOR ONLINE COURSEWORK SUBMISSIONS Module Code | MG3117 | Module Title | Issues and Controversies in Accounting project | Module leader | Jill Collis | Student ID NumberStudent name | | I understand that the School does not tolerate plagiarism. Plagiarism is the knowing or reckless presentation of another person’s thoughts, writings, inventions, as one’s own. It includes the incorporation of another person’s work from published or unpublished sources, without indicating that the material is derived from those sources. It includes the use of material obtained from the internet. (Senate Regulations 6.46)I confirm that I adhere to the School’s Policy on plagiarism. | The Unknown Economy Student Number: Supervisor: Degree Programme: BSc (Hons) Business and Management (Accounting) Department: Brunel Business School Date Submitted: 8th March 2012 Word Count: 7823 Abstract The rise in activity within the unknown economy in the middle of a global financial crisis is of no surprise to economists and researches. The majority of research is focused on defining the unknown economy, size, causes, and effects of government policies on unknown economic activities. However no evidence exists which focuses on any particular group within society hence this quantitative study examines the student population within Brunel University to determine the size, causes, ethical attitudes of respondents in regards to the unknown...
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