...What is Tax? A fee charged ("levied") by a government on a product, income, or activity. A means by which governments finance their expenditure by imposing charges on citizens and entities. Governments use taxation to encourage or discourage certain economic decisions. For example, reduction in taxable personal (or household) income by the amount paid as interest on home mortgage loans results in greater construction activity, and generates more jobs. If tax is levied directly on personal or corporate income, then it is a direct tax. If tax is levied on the price of a good or service, then it is called an indirect tax. The purpose of taxation is to finance government expenditure. One of the most important uses of taxes is to finance public goods and services, such as street lighting and street cleaning. Since public goods and services do not allow a non-payer to be excluded, or allow exclusion by a consumer, there cannot be a market in the good or service, and so they need to be provided by the government or a quasi-government agency, which tend to finance themselves largely through taxes. What is VAT (Value Added Tax)? VAT was introduced into the Indian taxation system from 1st April 2005. This is a kind of consumption tax which gets imposed on products or services at different stages of manufacturing and at final sale. This is a multi-point process of levying tax on value addition which is collected at different stages of sale with a provision for set-off for tax...
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...Q. 1 What is public finance? Answer: Public finance Public Finance is the study of Government activities and how the Government finance those activities.Collection of taxes from those who benefit from the provision of public goods by the government, and the use of those tax funds toward production and distribution of the public goods. Distinction between public finance and private finances. Answer: Difference between private and public finance: these are the differences between the private and public finance. 1: Adjustment of income and expenditure: a government first prepares an estimate of expenditure and then means to raise that sum and the individual must adjust his expenditure to his income. 2: Budgeting: the unit for the public budget is one year but an individual needs not balance his budget during a given period. 3: Deficit financing: deficit financing is a peculiar privilege of government but an individual can not do it, unless he is prepared to go behind the bars. 4: Different objectives: an individual tries to maximize his satisfaction or profit from a given amount of resources but the objective of government expenditure is to maximize social benefit. 5: Publicity of finance: budgets are published and the widest publicity is given to them. On the other hand, the secrecy surrounds individual finance. 6: Coercion: a government has to pass a law and compel the citizen to pay a tax while an individual lacks the coercive authority. How public...
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...prime minister, the bicameral legislature and the judiciary, and that there is a system of checks and balances in place. The current population of the UK is 64.1 million. The UK was one of the largest macroeconomics in the world. It was seen to be one of the strongest and most stable economies before 2007, however post 2008 economic deceleration began and the GDP growth rate fell to 0.7%. In 2008, the economy entered into a recession, with a predicted negative growth rate of -4.5% for the following year. (Data monitor Statistics) The current conservative government’s main economic aims are Economic growth with more goods and services produced in the economy, alongside low inflation, little unemployment with a Fair distribution of income. (HM Treasury) Taxation comes in two forms direct taxation (taxation on income and profits) and indirect taxation this is taxation on expenditure (VAT, excise duty). The UK government spends in the region of £400bn a year. Over a third of this money goes in welfare benefits such as pensions, unemployment benefit and other forms of income support. The rest is spent on health, education, defence, roads, law and order and on supporting businesses and local communities. (Data Monitor Statistics) Businesses can benefit direct or indirectly...
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...investors who provide the capital. Corporate finance helps to do this by giving managers tools to evaluate any proposal, such as marketing, production, and strategy and be able to implement only the projects that add value for the investors. b. Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form. Companies can have three organizational forms which are proprietorships, partnerships and corporations. Companies usually start as a proprietorship which is owned by one individual. It is generally easy and inexpensive to startup; it has fewer regulations than other organizational forms; and the income is not subjected to corporate taxation but is taxed as part of the proprietor’s personal income. However, the disadvantages of a proprietorship are that it may be difficult for a sole owner to generate needed capital for growth; personal liabilities are unlimited for the business debt, which can have implications on the owner’s personal assets such as property; and the life of the company is limited to the life of the founder. A general partnership is the same as a sole proprietorship in that it is a business that conducts non-corporate business; however, it has two or more people. The advantages and disadvantages are generally the same as a sole proprietorship; however, partners are responsible for their remaining partners’ liabilities and may have to make up the difference...
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...A. Corporate finance is important to all managers because they must generate enough cash to compensate the investors who provide necessary capital to help company by evaluating any proposal, whether it relates to marketing, production, strategy, or any other area, and implement only products that will add value to company investors. B. The organizational forms of a company is proprietorship, partnership, and corporation: Proprietorship is an unincorporated business owned by one individual. The three advantages are easily and inexpensively form, subject to few government regulations, and income is not subject to corporate taxation but taxed as part of the proprietor’s personal income. The three disadvantages are difficult for a proprietorship to obtain capital for growth, proprietor has unlimited personal liability for business’s debts, which can result in losses that may exceed money invested in company, and life of proprietorship is limited to life of its founder. Partnership two or more persons or entities associate to conduct a non-corporate business for profit. It may operate under different degrees of formality, ranging from informal, oral understandings to formal agreements filed with the secretary of state in which the partnership formed. The disadvantages of partnership is the liability were partners can potentially lose all of their personal assets, even assets not invested in the business due to partnership law stating that each partner is liable for the...
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...I.GENERAL PRINCIPLES ( THE POWER OF TAXATION ( Definitions: 1. Taxation: Power by which the sovereign raises revenue to defray the necessary expenses of the government from among those who in some measure are privileged to enjoy its benefits and must bear its burden. 2. Taxes: Enforced proportional contribution from properties and persons levied by the State by virtue of its sovereignty for the support of government and for public needs. ( Characteristics of Taxes: 1. forced charge; 2. generally payable in money; 3. levied by the legislature; 4. assessed with some reasonable rule of apportionment; 5. imposed by the State within its jurisdiction; 6. levied for public purpose. ( Theories or bases of taxation: 1. Lifeblood Theory Taxes are the lifeblood of the nation. Without revenue raised from taxation, the government will not survive, resulting in detriment to society. Without taxes, the government would be paralyzed for lack of motive power to activate and operate it. (CIR vs Algue, Inc., et. al.) Illustrations of Lifeblood Theory: a. Collection of taxes may not be enjoined by injunction. b. Taxes could not be the subject of compensation and set-off. c. A valid tax may result in destruction of the taxpayer's property. 2. Necessity Theory Existence of a government is a necessity and cannot continue without any means to pay for expenses. a. Marshall Dictum “ Power to tax is the power to destroy” – describes the unlimitedness of the power...
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...REGENT UNIVERSITY OF SCIENCE AND TECHNOLOGY ASSESSING THE IMPACT OF THE VALUE ADDED TAX (VAT) SCHEME ON THE REVENUE GENERATION CAPACITY IN GHANA A LONG ESSAY PRESENTED TO THE SCHOOL OF ARTS AND SOCIAL SCIENCES (SASS), REGENT UNIVERSITY COLLEGE OF SCIENCE AND TECHNOLOGY, IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF BACHELOR OF SCIENCE DEGREE IN ACCOUNTING AND INFORMATION SYSTEMS NII TORTO QUAO (022 0207) DECEMBER 2009 DECLARATION I hereby declare that this long essay is the original research undertaken by me, including all references from other books, handouts, internet, magazines, textbooks, etc under the supervision of the under signed lecturer. Mr. Albert Akanferi …………………………….. ……………………………….. (Supervisor) Signature Date Nii Torto Quao …………………………….. ………………………………. (Student) Signature Date i ABSTRACT A strong and efficient tax system provides the basis for enhanced economic growth and development. Ghana’s fiscal structure prior to 1983 had generally been characterised by low tax revenue. As a result Ghana undertook a number of reforms prescribed by the International Monetary Fund and the World Bank under the Economic Recovery Programme (ERP) and the Structural Adjustment Programme (SAP). Tax reforms constituted one of the essential ingredients of SAP. The tax reform process has assumed diverse dimensions over the pass two and half decades. One of those tax reforms was the Value Added Tax scheme (VATs). The purpose of this study is to assess...
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...ACKNOWLEDGMENT WE WOULD LIKE TO EXPRESS OUR GRATTITUDE TO DR.ASHOK PANIGRAHI WHOSE STIMULATING SUGGESTIONS AND ENCOURAGEMENT HELPED US TO COMPLETE THE PROJECT CONTENTS 1. Acknowledgment 2. Introduction to Indian economy 3. Meaning of fiscal policy 4. Need & importance of EP 5. Use of fiscal policy by Indian government 6. Fiscal policy before & after liberalization 7. Indian tax system & fiscal policy 8. Role in development of Indian Economy 9. Shortcomings or deficiencies in our fiscal policy 10.Findings & suggestions on Indian fiscal policy ECONOMY OF INDIA The economy of India is the eleventh largest in the world by nominal GDP and the third largest by purchasing power parity (PPP). The country is one of the G-20 major economies and a member of BRICS. On a per capita income basis, India ranked 140th by nominal GDP and129th by GDP (PPP) in 2011, according to the IMF. After the independence-era Indian economy (before and a little after 1947) was inspired by the Soviet model of economic development, with a large public sector, high import duties combined with interventionist policies, leading to massive inefficiencies and widespread corruption. However, later on India adopted free market principles and liberalized its economy to international trade under the guidance of Manmohan Singh, who then was the Finance Minister of India under the leadership of P.V. Narasimha Rao the...
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...International Trade Speech Economic decisions, much like life decisions require a thought process that assesses the wants and desires from the needs of a country. Often times, countries possess a competitive advantage of a good that can be produced at a much lower operational cost than other countries. Therefore, the U.S. recognizes the importance of the good and the fact that it can be attained much cheaper if imported into the U.S. rather than produced on U.S. soil. Therefore, trade surpluses can occur when that good is imported at a higher rate than it is consumed, or exported. One example of such an occurrence can be seen within the agricultural industry. The demand for seeking lower-cost foods is a constant battle for U.S. importers much like the desire to create a lower cost product on U.S. land is for exporters. Because it is a constant battle, throughout the early 2000’s there was an agricultural trade surplus within the U.S recorded in 2004 (Agribusiness Examiner, 2004). This is because new farming powers were emerging with products like Brazilian soybeans, alongside a massive surge in the production of Russian wheat that nearly rivaled the U.S. production (Agribusiness Examiner, 2004). When this happens, competition creates innovative solutions to drive costs down. However, the short-term effects can threaten local U.S. farmers and their means of life. That being said, the strength of agriculture is reflected, as the U.S. is still the world’s largest agricultural exporter...
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...Strategies for Reviving the Japanese Economy Introduction 1. Assessment of the Current Economy The Japanese economy has begun to show some signs of change as the effects of recent large-scale economic packages have gradually helped to stop the severe economic downturn. But despite this progress, private demand as a whole remains stagnant. Therefore, the economic prospects for self-supported recovery are still uncertain once the economic effects of the last packages have phased out. The fundamental problems pertinent to the weak economy are twofold. First, the true adjustment of the burst of the bubble economy is still insufficient. Second, against the background of the sharp decline in the number of births and the rapid aging of the population, the pace of which has not been experienced in other industrialized nations, the "Japanese system"--the engine of the country's astonishing high growth in the postwar era--has turned problematic with regard to economic growth. First, fears about employment prospects, future pension plans, and the sharp rise in government deficits are obviously restraining an economic turnaround. These fears are attributable to eroding sustainability in the Japanese-style wage and employment systems and the generous social security system. To cope with the situation, provisions of renewed safety nets are urgently needed. Furthermore, the rising fiscal deficits are restraining economic upturn by making people serious about future tax hikes...
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...Managing multinational operations Module 98 MANAGING MULTINATIONAL OPERATIONS8 MODULE 8 OVERVIEW Managing multinational operations Objectives At the completion of this module, you should be able to: • Ooutline the objectives of maintaining documentation for foreign trade transactions • Eexplain the key documents for a foreign trade transaction • Ddiscuss the various payment methods for international trade • Ddiscuss the characteristics of export finance and risk insurance • Ddiscuss the objectives and major tasks of current asset management • Eexplain the features of international cash management, accounts receivable management and inventory management • Ddiscuss the important differences between domestic taxation and multinational taxation. Learning resources Textbook Eiteman, Stonehill & Moffett 2013, edition 13th01, chapters 175, 17 19 and 20 and 18. Introduction This final module of the course encompasses a number of areas that are essential to any multinational finance course but have yet to be covered in this course. In particular, the module focuses on specific areas regarding the management of multinational operations. The module is essentially broken into three sections, all of which have a relevance to each other and to the other topics covered in this course. The first section focuses on the importance of foreign trade, in particular with regards to the growth potential it offers firms. More importantly, this section centres on the objectives...
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...Fiscal Policy for Stabilization and Growth Sessions 11 & 12 Reading: Chapter 5 What is Demand Management? • Demand-constrained economy: – Increase aggregate demand to tackle recession/depression • Supply-constrained economy: – Manage demand to control demand-pull inflation 2 Policy focus: Demand-constrained Economy Aggregate demand K Potential output 3 Policy focus: Supply-constrained Economy Aggregate demand K Potential output Also: Long term – increase K to expand potential output 4 Recession/Depression • Recession: – Rule of thumb: two consecutive quarters of falling GDP • Depression: – “Severe” recession – no widely accepted definition: • Decline in real GDP that exceeds 10%, or one that lasts more than three years • Other alternative indicators: bursting of asset, credit bubble, fall in general price level 5 Examples of Depression (Using 10% GDP fall rule) 6 Economic Policy • Two main policy instruments to influence aggregate demand (C + I + G + X - M): – Fiscal Policy: • Through Government expenditure and revenue – Monetary policy: • Through Money supply and interest rates 7 Basic Logic of Demand Management (to ↑ demand) • Fiscal Policy: –↑G – ↓ income taxes to ↑ C – (Also: • ↑ tariff duties to reduce M • Provide incentives to ↑ X) • Monetary Policy: – ↓ rate of interest to ↑ C; ↑ I 8 Fiscal Policy and Demand Management in India 9 (see: http://indiabudget.nic.in) • • •...
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...What is the difference between public and private finance? Government expenditures are the expenditures incurred by the Government for development of the country and also on non-development objectives in view. Government revenue comes from taxation i.e. direct taxation and indirect taxation. Government ‘debt is obtained from internal and external sources. Loans from internal sources are obtained by selling Government securities to the people whereas external sources are those such as the World Bank, IMF etc. Public finance is for the benefit of the people in general unlike private financing which is confined to a particular purpose i.e. family matter only. We shall now take up the difference between the two. The basic difference between public and private financing is that an individual adjusts his expenditure in accordance with the given income. On the other hand, the Government relatively speaking adjusts its income in accordance with its expenditure. Thus, the individual is only able to spend so much but the government may spend as much as it likes and then care of the income. Relatively speaking the Government prepares its expenditure first or rather it estimates expenditure, and only then devises ways and means to obtain the amount required. However, sometimes the individual also does the same thing as the Government and vice versa. i.e. when the Government realizes a surplus budget it would increase expenditure in specific areas and when the public revenue is declining...
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...the institute of cost accountants of india(ICAI) (A Statutory body under an act of parliament) SYLLABUS 2012 STRUCTURE & contents Evaluation Synthesis ANALYSIS ANALYSIS APPLICATION APPLICATION COMPREHENSION COMPREHENSION COMPREHENSION KNOWLEDGE KNOWLEDGE KNOWLEDGE LEVEL A LEVEL B LEVEL C FOUNDATION COURSE - Syllabus 2012 the institute of cost accountants of india(ICAI) (A Statutory body under an act of parliament) SYLLABUS 2012 STRUCTURE & contents The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 1 FOUNDATION COURSE - Syllabus 2012 The Following table lists the learning objectives and the verbs that appear in the syllabus learning aims and examination question. Learning objectives Level A COMPREHENSION What you are expected to understand List Make a list of. State Express, fully or clearly , the details/ facts of. Define Give the exact meaning of. Communicate the key features of. Distinguish Highlight the differences between. Explain Make clear or intangible/state the meaning or purpose of. Identify Recognise, establish or select after consideration. Illustrate What you are expected to know Definition Describe KNOWLEDGE Verbs used Use an example to describe or explain something. The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) ...
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...ASSESSING THE CHALLENGES OF TAX REVENEUE MOBILISATION IN GHANA: A CASE OF SUNYANI MUNICIPALITY. By EGYIN, KODWO BOAKYE (PG 2043808) A Thesis submitted to the Institute Of Distance Learning, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirements for the degree of COMMONWEALTH EXECUTIVE MASTERS OF BUSINESS ADMINISTRATION JUNE, 2011 1 DECLARATION I hereby declare that this submission is my own work towards the CEMBA and that, to the best of my knowledge, it contains no material previously published by another person nor material which has been accepted for the award of any other degree of the University, except where due acknowledgement has been made in the text. Kodwo Boakye Egyin Student Name ................................... Signature .............................. Date Certified by: Mr. Jones Lewis Arthur Supervisor ................................... Signature .............................. Date Certified by: Professor Isaac Dontwi Dean ................................... Signature .............................. Date 2 DEDICATION I dedicate this work first to the Almighty God who has brought me this far, to my father, Kwamina Akwaa Egyin, who mentored me through my education, my loving wife, Yvonne, my sweet kids, Papa Akwaa, Araba and Kurankwesi who stayed by my side all along. 3 ACKNOWLEDGEMENT I am most grateful to the Almighty God for His protection throughout the course and seeing to a successful end. My special...
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