...OVERVIEW OF FEDERAL TAX PROVISIONS AND ANALYSIS OF SELECTED ISSUES RELATING TO NATIVE AMERICAN TRIBES AND THEIR MEMBERS Scheduled for a Public Hearing Before the SENATE COMMITTEE ON FINANCE on May 15, 2012 Prepared by the Staff of the JOINT COMMITTEE ON TAXATION May 14, 2012 JCX-40-12 CONTENTS Page INTRODUCTION AND SUMMARY I. 1 GENERAL RULES REGARDING THE TAXATION OF INDIAN TRIBES AND TRIBAL MEMBERS AND THE TAXING POWERS OF INDIAN TRIBES ................. 3 A. Income Taxation of Indian Tribes and Wholly Owned Tribal Corporations................ 3 1. Federal income taxation of Indian tribes and wholly owned tribal corporations ... 3 2. State taxation of Indian tribes ................................................................................. 4 B. Tax Treatment of Enrolled Members of Indian Tribes ................................................. 7 1. Federal tax............................................................................................................... 7 2. State tax................................................................................................................... 7 C. Taxing Powers of Indian Tribes .................................................................................... 9 D. Alaska Native Settlement Trusts................................................................................. 10 II. SELECTED FEDERAL TAX RULES AND ISSUES RELATING TO INDIAN TRIBES AND THEIR MEMBERS ............
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...Classification of Corporations V. CLASSIFICATIONS OF CORPORATIONS 1. In Relation to the State: (a) Public corporations (Sec. 3, Act No. 1459) § Organized for the government of the portion of the state (e.g., barangay, municipality, city and province) § Majority shares by the Government does not make an entity a public corporation. xNational Coal Co., v. Collector of Internal Revenue, 46 Phil. 583 (1924). (b) Quasi-public corporations xMarilao Water Consumers Associates v. IAC, 201 SCRA 437 (1991) Although Boy Scouts of the Philippines does not receive any monetary or financial subsidy from the Government, and that its funds and assets are not considered government in nature and not subject to audit by the COA, the fact that it received a special charter from the government, that its governing board are appointed by the Government, and that its purpose are of public character, for they pertain to the educational, civic and social development of the youth which constitute a very substantial and important part of the nation, it is not a public corporation in the same sense that municipal corporation or local governments are public corporation since its does not govern a portion of the state, but it also does not have proprietary functions in the same sense that the functions or activities of government-owned or controlled corporations such as the National Development Company or the National Steel Corporation, is may still be considered as such, or under the 1987 Administrative Code as an...
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...Filipino citizens and residents of the Philippines, have this day voluntarily agreed to form a stock corporation under the laws of the Republic of the Philippines. AND WE HEREBY CERTIFY: FIRST: That the name of said corporation shall be “ CORPORATION”; SECOND: That the purpose for which such corporation is incorporated is: To establish, maintain and operate restaurants, coffee shops, refreshment parlor, cocktail lounge; to cook, arrange, serve and cater goods, drinks, refreshments, and other food or commodities commonly served in such establishments, and to offer such other services to the public in connection with the operation of restaurant and catering enterprises. THIRD: That the principal office of the corporation is located in the City/Municipality of ………………………………………, Province of ………………………………………….., Philippines;. Under SEC Circ. No. 3, series of 2006, the SEC required that the articles must state the “(1) specific address of their principal office which shall include, if feasible, the street number, street name, barangay, city or municipality.” “Metro Manila” is no longer allowed as address of the principal office. FOURTH: That the term for which said corporation is to exist is firty (50) years from and after the date of issuance of the certificate of incorporation; FIFTH: That the names, nationalities and residences of the incorporators of the corporation are as follows: NAME NATIONALITY ...
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...1702-EX06/13P1 Annual Income Tax Return For Use ONLY by Corporation, Partnership and Other Non-Individual Republika ng Pilipinas Taxpayer EXEMPT Under the Tax Code, as Amended, [Sec. 30 and Kagawaran ng Pananalapi those exempted in Sec. 27(C)] and Other Special Laws, Kawanihan ng Rentas Internas with NO Other Taxable Income BIR Form No. 1702-EX June 2013 Page 1 Enter all required information in CAPITAL LETTERS using BLACK ink. Mark applicable boxes with an “X”. Two copies MUST be filed with the BIR and one held by the taxpayer. 1 For Calendar 3 Amended Return? Fiscal 2 Year Ended (MM/20YY) Yes /20 4 Short Period Return? No Yes 5 Alphanumeric Tax Code (ATC) IC 011 Exempt Corporation on Exempt Activities No IC 021 General Professional Partnership Part I - Background Information - 6 Taxpayer Identification Number (TIN) - - 0 0 0 0 7 RDO Code / 8 Date of Incorporation/Organization (MM/DD/YYYY) / 9 Registered Name (Enter only 1 letter per box using CAPITAL LETTERS) 10 Registered Address (Indicate complete registered address) 11 Contact Number 12 Email Address 13 Main Line of Business 14 PSIC Code 15 Method of Deduction Itemized Deductions [Sections 34 (A-J), NIRC] 16 Legal Basis of Tax Relief/Exemption (Specify) 18 Registered Activity/Program (Reg. No.) 17 Investment Promotion Agency (IPA)/Government Agency 19 Effectivity Date of Tax Relief/Exemption From / / ...
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...14-24 what is the purpose of the dividends-received deduction? What corporations are entitled to claim this deduction? What dividends qualify for this deduction? A dividends received deduction is a specific term in US federal regulations on income tax. It refers to a deduction granted to a corporation to cover dividends received from another corporation that it partly owns. As a result, it is a rare example of a deduction applied to money that has been received by the taxpayer, rather than spent. The purpose of the dividends received deduction is to limit the effects the same money being taxed repeatedly. US policy does allow for double taxation, which is the circumstance by which a company's profits are taxed and then shareholders are taxed on the dividends they receive from the company's post-tax profits. Without the dividends received deduction, there would be an extra layer of taxation: tax would be taken from a corporation's profits, the dividend paid to a second corporation with an ownership stake in the first corporation, and the dividends paid by the second corporation to individual stockholders. Source: http://www.wisegeek.com/what-is-a-dividends-received-deduction.htm 14-51What is the purpose of the reconciliation of taxable income with book income? Generally, Sec. 446 requires taxable income to be computed under the same method of accounting as the taxpayer uses for its books. However there are differences in the accounting method used for GAAP versus tax.....
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...S O LU T I O N TO C O R P O R AT I O N P R AC T I C E S E T No More Ice, Inc. 1 3 4 5 6 7 No More Ice, Inc. E. I. No. 98-7654321 A Schedule Attached to and Made Part of 2012 Form 1120—U.S. Corporation Income Tax Return List of Attached Schedules Schedule O—Consent Plan and Apportionment Schedule Form 1125-A—Cost of Goods Sold Forms 8949—Sales and Other Dispositions of Capital Assets Form 4626—Alternative Minimum Tax—Corporations Schedule D—Capital Gains and Losses Schedule G (Form 1120)—Information on Certain Persons Owning the Corporation’s Voting Stock Form 1125-E—Compensation of Officers Attachment—Supporting Details 9 11 12 13 14 15 16 17 18 19 20 21 INFORMATION FOR INSTRUCTORS CORPORATION PRACTICE SET (2013-2014 EDITION) No More Ice, Inc. Following are details on some of the calculations in the solution. Observations are made on areas which the students may find more difficult. You can reduce the difficulty of the practice set if you so choose by providing your students “clues” (or even the solutions) in some or all of these areas. Paragraph references are to the facts for the practice set. 1. Computation of Cost of Goods Sold (Form 1125-A). Amounts for beginning and ending inventories and for cost of goods sold are provided. Students must “back into” the cost of purchases; e.g., Cost of Goods Sold ........................................................................... Inventory Adjustment...
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...RECOMMENDATION FOR SAVING FOR CHILDREN’S EDUCATION Facts: Facts: Taxpayers are married and have three children, ages 9, 7 & 3. Their joint income is currently $200,000 per year. Assumptions: Taxpayers will not have more children and they will not divorce. Their income is $200,000 per year and stays constant. They currently live in California and their children will attend college, specially the UC System, at age 18. So there are 9, 11 and 15 years until the children will need the funds. Due to the parents’ high income, the children will not be eligible for any financial aid. Based on additional assumptions that the tuition inflation rate is 8.3% and the current tuition amount for the UC system is $13,200, Table I shows the tuition amounts needed for each child. Table I: Tuition Amounts Need for Each Child for Each Year of College | 1st | 2nd | 3rd | 4th | Total | 3year old | $ 43,651.7 | $ 47,274.7 | $ 51,198.6 | $ 55,448.0 | $ 197,573 | 7 year old | $ 31,731.2 | $ 34,364.9 | $ 37,217.2 | $ 40,306.2 | $ 143,620 | 9 year old | $ 27,053.9 | $ 29,299.4 | $ 31,731.2 | $ 34,364.9 | $ 122,449.5 | Total | | | | | $ 463,642.5 | Issue: Based on Table I, it would be difficult to save for the children’s education based on the taxpayer’ income. We do not attempt to maximize the value of our investments due to market risk for different investments. Therefore, the overall goal is to maximize tax savings. Our...
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...Analysis of Ethical Corporate Culture between 2013 and 2015 Group 6: Michelle Delgado Lok Sum Lydia Fung Chau Nguyen ACCT 415 Dr. James Gong 5/14/2015 Executive Summary In business, leaders, managers, and employees face conflicting incentives, messages and pressures from multiple stakeholders. Conflict of interest is said to occur when a professional’s self interest offers an incentive that mitigates his or her judgment against the best interest of the corporation or its customers. In turn, most professionals are unaware of their unethical progression because they are blindsided by internal motivation and expectations. It has been proclaimed that the most important job of the board of directors is hiring the right CEO, causing most boards to fail to notice unethical behavior in someone they do not wish or expect to find it. In fact, research suggests that it is usually difficult to report wrongdoing in an organization because most employees believe the same and fear retaliation, rejection, or disbelief from corporate leaders. Ethical principles will often offer advice for procedures and norms that can reinstate ethical concerns before unforeseen behavior damages an enterprises culture or reputation. In general, ethical systems are designed to improve the ethical behavior within an organization. To do so requires examining the interaction of many factors and forces in a working environment - which were investigated (analyzed) in this report. Executives...
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...the Code. - This Code shall be known as "The Corporation Code of the Philippines". Sec. 2. Corporation defined. - A corporation is an artificial being created by operation of law, having the right of succession and the powers, attributes and properties expressly authorized by law or incident to its existence. Sec. 3. Classes of corporations. - Corporations formed or organized under this Code may be stock or non-stock corporations. Corporations which have capital stock divided into shares and are authorized to distribute to the holders of such shares dividends or allotments of the surplus profits on the basis of the shares held are stock corporations. All other corporations are non-stock corporations. Sec. 4. Corporations created by special laws or charters. - Corporations created by special laws or charters shall be governed primarily by the provisions of the special law or charter creating them or applicable to them, supplemented by the provisions of this Code, insofar as they are applicable. Sec. 5. Corporators and incorporators, stockholders and members. - Corporators are those who compose a corporation, whether as stockholders or as members. Incorporators are those stockholders or members mentioned in the articles of incorporation as originally forming and composing the corporation and who are signatories thereof. Corporators in a stock corporation are called stockholders or shareholders. Corporators in a non-stock corporation are called members. Sec. 6...
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...Manual of Corporate Governance SEC Securities and Exchange Commission of Pakistan This manual is for reference only and does not constitute any legal requirement on companies, their officers, directors or auditors. This manual may be used for guidance and compliance must be ensured with the provisions of applicable laws and regulations. CONTENTS I. II. INTRODUCTION WHAT IS CORPORATE GOVERNANCE? (i) The Background (ii) Definition of Corporate Governance (iii) The Benefits of Corporate Governance (iv) The Pakistani Corporation (v) The Origins of Corporate Governance in Pakistan THE NEED FOR CORPORATE GOVERNANCE THE STAKEHOLDERS (i) General (ii) Shareholders (iii) Directors (iv) Employees (v) Creditors PROMOTING REFORM AND SHAREHOLDER ACTIVISM ROLE AND RESPONSIBILITIES OF DIRECTORS AND MANAGERS (i) Directors and Managers Distinguished (ii) Appointment and Proceedings of Directors (iii) Fiduciary Duties (iv) Powers and Responsibilities of Directors (v) Liability of Directors (vi) Executive and the Non-executive Directors (vii) The CEO 1 3 3 4 7 8 10 12 17 17 19 20 20 21 22 26 26 26 32 38 42 42 45 III. IV. V. VI. (viii) (ix) (x) (xi) The Company Secretary The CFO Internal Control System Reporting Requirements 47 49 49 50 VII. SCRUTINIZING FINANCIAL STATEMENTS - WHAT EVERY DIRECTOR SHOULD KNOW (i) General (ii) Liability of Directors (iii) Preparation of Financial Statements (iv) Tools for Directors' Review (v) How to Prevent Misleading and Fraudulent...
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................................................................................................. 4 1.3. Limitations .................................................................................................. 5 1.4 Analysis and conclusion .............................................................................. 5 1.5 Further research ........................................................................................... 6 2. Literature Review: An Overview of Corporate Governance ..................................... 6 2.1 United Kingdom ........................................................................................ 14 2.2 Self-regulation prior to SOX ..................................................................... 18 3. Literature Review: The SOX Act ................................................................ 19 3.1 Enron, the trigger to SOX? ........................................................................ 22 4. The Sarbanes Oxley Act: Radical Reforms in Key Areas ....................................... 26 4.1 Establishing the Public Company Accounting Oversight Board (PCAOB) ......................................................................................................................... 26 1 Student ID: 082168461 4.2...
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...Gaviola, Harold Dave B. BSA-V Assignment in COMED421/0180/8:30-9:30PM PSA 401: Auditing in a Computer Information Systems Environment - The increasing availability of computer-based accounting systems that is capable of meeting both functional and economic circumstances of even the smallest entity impacts on the audits of those entities. Small entities’ accounting systems often make use of personal computers. Philippine Auditing Practice Statement 1001, “CIS Environments—Stand-Alone Personal Computers” gives additional guidance regarding the special considerations of such an environment. - Small entities are likely to use less sophisticated hardware and software packages than large entities (often “packaged” rather than developed “in house”). Nevertheless, the auditor has sufficient knowledge of the computer information system to plan, direct, supervise, and review the work performed. The auditor may consider whether specialized skills are needed in an audit. - Because of the limited segregation of duties, the use of computer facilities by a small entity may have the effect of increasing control risk. For example, it is common for users to be able to perform two or more of the following functions in the accounting system. • Initiating and authorizing source documents. • Entering data into the system. • Operating the computer. • Changing programs and data files. • Using or distributing output. • Modifying the operating systems. - The use of computer information...
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...1933 [AS AMENDED Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. THROUGH P.L. 112-106, APPROVED APRIL 5, 2012] TABLE OF CONTENTS 1. Short Title. 2. Definitions. 2A. Swap Agreements. 3. Exempted Securities. 4. Exempted Transactions. 4A. Requirements With Respect to Certain Small Transactions. 5. Prohibitions Relating to Interstate Commerce and the Mails. 6. Registration of Securities and Signing of Registration Statement. 7. Information Required in Registration Statement. 8. Taking Effect of Registration Statements and Amendments Thereto. 8A. Cease-And-Desist Proceedings. 9. Court Review of Orders. 10. Information Required in Prospectus. 11. Civil Liabilities on Account of False Registration Statement. 12. Civil Liabilities Arising in Connection With Prospectuses and Communications. Sec. 13. Limitation of Actions. Sec. 14. Contrary Stipulations Void. Sec. 15. Liability of Controlling Persons. Sec. 16. Additional Remedies; Limitation on Remedies. Sec. 17. Fraudulent Interstate Transactions. Sec. 18. Exemption From State Regulation of Securities Offerings. Sec. 19. Special Powers of Commission. Sec. 20. Injunctions and Prosecution of Offenses. Sec. 21. Hearings by Commission. Sec. 22. Jurisdiction of Offenses and Suits. Sec. 23. Unlawful Representations. Sec. 24. Penalties. Sec. 25. Jurisdiction of Other Government Agencies Over Securities. Sec. 26. Separability of Provisions. Sec. 27. Private Securities Litigation. Sec. 27A. Application of...
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...Insolvency Act of 2010 I. INTRODUCTION: A BRIEF HISTORY 2010 For a long time, a distressed corporation in the Philippines had no other real recourse than to commit legal seppuku, whether or not its financial condition was due to the fundamental unsoundness of its business or merely a temporary run in with bad luck. This lack of any real corporate rescue vehicle characterized the legal environment that prevailed under the regime of Act No. 1956 (otherwise known as the “Insolvency Law”) from the time of its enactment on 20 May 1909 until the early 1980s1. Act 1956 by itself introduced major changes to corporate law and removed the distinction in the Spanish system between “insolvency” and “bankruptcy.” Nonetheless, the Insolvency Law’s approach to corporate rescue was simply to provide a “solvent but illiquid” debtor temporary relief from payment of its debts while an “insolvent” corporation was forced to undertake a gradual and organized liquidation process2. The Insolvency Law of the Philippines is in fact a derivative of even older laws from other jurisdictions, such as the California Insolvency Law of 1895 and the American bankruptcy Act of 1867 [See Sun Life Assurance Co. of Canada v. Frank B Ingersoll, et. al.; GR No. 164758 (November 1921)] 2 1 The three main remedies under Act 1956 are: a) Petitions for the suspension of payments by an individual, sociedad or corporation under Section 2 of the Insolvency Law: Section 2. The debtor who, possessing sufficient property...
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...as financial sophistication, net worth, knowledge, and experience in financial and business matters, or amount of assets under management. 10.2. The Commission may exempt other transactions, if it finds that the requirements of registration under this Code is not necessary in the public interest or for the protection of the investors such as by reason of the small amount involved or the limited character of the public offering. 10.3. Any person applying for an exemption under this Section, shall file with the Commission a notice identifying the exemption relied upon on such form and at such time as the Commission by rule may prescribe and with such notice shall pay to the Commission a fee equivalent to one-tenth (1/10) of one percent (1%) of the maximum aggregate price or issued value of the securities. SEC. 11. Commodity Futures Contracts.- No person shall offer, sell or enter into commodity futures contracts except in accordance with rules, regulations and orders the Commission may prescribe in the public interest. The Commission shall promulgate rules and regulations involving commodity futures contracts to protect investors to ensure the development of a fair and transparent commodities market. SEC. 12. Procedure for Registration of Securities. - 12.1. All securities required to be registered under Subsection 8.1 shall be registered through the filing by...
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