...UNDERSTANDING THE SINGAPORE TAX SYSTEM 4-6 3. TAX RATES 6 4. TAX ADMINISTRATION AND COMPLIANCE 7 NEWZEALAND 5. TAXATION IN NEWZEALAND 7-8 6. INCOME SUBJECT TO TAX 8-9 7. TAX RATES 9-11 8. TAX ADMINISTRATION AND COMPLIANCE 11 1. BASIC PRINCIPLES OF TAXATION IN SINGAPORE The scope of taxation in Singapore 1. Income tax is charged on income from an employment exercised in Singapore and on any income accrued in or derived from Singapore, regardless of the tax residency of the individual. The taxability of employment income depends on where the services are performed, not where the payment is made or where the employer is resident. 2. With effect from 1 January 2004, income derived from sources outside Singapore, even if received in Singapore (except for income received through a partnership in Singapore), is exempt from Singapore tax. The tax year 3. In Singapore, an individual's income of the preceding calendar year ('tax year') is assessed to tax in the following calendar year ('Year of Assessment'). For example, if an individual commenced his or her employment in Singapore in April 2010, the employment income derived in the period April to December 2010 will be chargeable to tax in Year of Assessment (“YA”) 2011. Methods of calculating tax 4. Resident individuals are entitled to personal reliefs and are subject to graduated tax rates ranging from 0% to 20% . 5. Employment income derived by non-residents...
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...Forum on Tax Reform Fundamental Tax Reform: An International Perspective Abstract - This paper examines trends in tax reforms. The analysis is limited to the experience of 30 OECD countries, and focuses particularly on changes since the year 2000. The paper analyses the general trend of reductions in both tax revenues and rates and the diversity in tax policies across OECD countries, reflecting the diversity in both economic circumstances and policy objectives. Developments in tax administration are also briefly dealt with. Some of the challenges for tax policymakers and administrators that are likely to arise over the next few years are identified, and possible alternative approaches to solving them are put forward. INTRODUCTION ax reform is an ongoing process, with tax policymakers and tax administrators continually adapting their tax systems to reflect changing economic, social and political circumstances. Over the last two decades, almost all Organisation for Economic Cooperation and Development (OECD) countries have undertaken structural changes to their tax system that have significantly altered the way these systems function and their economic and social impacts.1 In some countries (for example, many of the Eastern European economies in transition), the reforms have been profound and implemented over a very short period of time. In others (most of the European countries), the reforms have been a gradual process of adaptation, but over time they have substantially redesigned...
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...shares but does not actively work in corporation can draw dividends only. This paper will focus on the active owners of a small business corporation. The analysis will compare the methods and the impact on owners as well as the corporation using each approach. The mix method will also be analyzed and discussed. Basic tax concepts are based on the theory of integration. BDO defines Integration in The Tax Factor, they say that” A tax system is said to be integrated if the same amount of overall tax is paid when the income is earned indirectly through a corporation or directly by an individual.” (BDO Dunwoody, 2009, p.1) According to this theory there should be no difference to the individual regardless of the method chosen. But we know that in order for there to be integration the rates have to be perfectly matched. The tax system in Canada is not perfect and there will be a savings or a cost when drawing dividends (BDO Dunwoody LLP, 2009). Provincial corporate and personal tax rates vary significantly from provinces to province. The corporate tax rates have been very active, consistently dropping in many provinces. Along with tax rates dropping, small business limits have been...
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...Arayawna Moore ACCT 613- Federal Income Taxation February 22, 2014 University of Maryland University College Susan K. Duke Issue: The Dynamic Effects of Personal and Corporate Income Tax Changes in the United States within the Labor Market Rule: * Most corporate income is subject to a 35% statutory tax rate * Taxpayers with an ordinary income tax rate of 15% or less pay the 0% rate on dividends. Taxpayers in the 25%, 28%, 33%, and 35% tax brackets are subject to a 15% tax rate on dividends. * 26 U.S. Code § 861 - Income from sources within the United States * 26 U.S. Code § 3510 - Coordination of collection of domestic service employment taxes with collection of income taxes * 26 U.S. Code § 3401 - Definitions Analysis: This article helps the reader look beyond the impact of tax changes on output or revenues allowing us to gain further insight into how tax changes are transmitted to the economy and into possible differences between the two tax components; personal and corporate income tax. The authors point out that changes in taxes may impact on costs of production and may affect inflation, to the extent that cost changes are passed into prices. There are important differences in how personal and corporate income tax changes affect the labor market. Studies that focus exclusively on total average tax rates or revenues are therefore only of limited use for assessing the ability of tax policy to affect employment at...
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... many countries applied the system of progressive income tax, which was earlier applied in Western Europe. But it soon turned out to be a system that discouraged economic growth. Therefore, some of these countries since 1994 have established the system of flat tax. Flat tax implies the application of a single-level tax system. Flat tax is applied in consideration of the supposition that all income should be taxed only once during their circulation, precisely when they are owned. Flat tax system refers to the unification of taxes in two taxing plans: personal income tax, which is levied on the total income of the individual and corporate tax, which is levied on the profits made by the companies. Flat tax was firstly applied in Albania during 2008 after two years of debates. The tax refers to the application of a 10% levied on the profit or on the total personal income. Keywords, flat tax, progressive tax, rates taxes, tax system in Albania, the consequences of taxation The notion of taxation has been known since the establishment of states. A social organization, as primitive as it may be, requires sufficient financial means to accomplish its goals. Taxes are a substantial means of providing the financial resources of a country. They occupy the leading place in the public income of modern countries. The great part of our neighboring countries and countries with quite a similar economic situation as ours are applying flat tax. So as to improve the economic situation and the fiscal...
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...TAXATION PERSONAL INCOME TAX IN THE UNITED STATE Group’s member:Nguyễn Như Nam (C)Phan Thu AnNguyễn Thùy DungHoàng Bá SơnNgô Thị Ánh TuyếtDate: 15/12/2014 | Table of Contents PART 1. The review on the tax system in the United States 2 1. The tax administration system in United States 2 2. The tax policy system in United States 3 PART 2. The review of the main content of the tax laws 5 I. The scope of application 5 1. Taxable incomes 5 2. Non-taxable 7 3. Payers. 7 II. The taxation bases 9 III. The tax calculation method 10 1. Gross Income 10 2. Adjusted gross income 17 3. Tax Credits 17 4. Tax Rates 20 5. Deductions and exemptions 22 IV. Tax declaration, submission and refund 32 1. Declaration 32 2. Submission 33 3. Refund 34 REFERENCES 36 PART 1. The review on the tax system in the United States Taxation is an important for each country. Taxation provides a material to distribute economic resources towards those with low incomes or special needs. Taxes provide the revenue needed for critical public services such as social security, health care, national defense, and education. 1. The tax administration system in United States The U.S. system of tax administration is based on the principle of self-assessment. In a self-assessment system, taxpayers calculate and pay their own taxes without the intervention of a tax official. If this is not done appropriately and within the prescribed timeframes, the tax administration...
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...Table of Contents Introduction 2 1.1 Describe the UK tax environment to Shawn 3 1.2 Analyse the role and responsibilities of you as the tax practitioner in the contexts of UK tax system. 7 1.3 Explain the tax obligations of tax payers or their agents and the implications of non-compliance 9 2.1 Calculate relevant income, expense and allowances 10 2.2 Calculate taxable amounts and tax payable, for employed and self-employed individuals, and advise on payment dates 11 2.3. Complete relevant documentation and returns 12 Conclusion 13 Reference 14 Introduction UK tax environment are many problems for a British citizen who has plans to start a new business in the UK. Being a new businessman and had no direct background about the UK tax systems rules and procedures, Based on the information in the scenario, we research in the UK tax environment according to the factors following: the environment, the role and the responsibility of the UK tax practitioners, tax system, explain the tax obligations of tax payers or their agents and the implications of non- compliance, Calculate the relevant income, expenses and allowances, Calculate taxable amounts and tax payable, for employed and self-employed individuals, and advise on payment dates for the above cases, complete the relevant documentation and tax returns. 1.1 Describe the UK tax environment to Shawn 1.1.1 UK tax legislation: The tax which is regulation set to apply for citizen in UK with the...
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...CHAPTER 3 TAX DETERMINATION; PERSONAL AND DEPENDENCY EXEMPTIONS; AN OVERVIEW OF PROPERTY TRANSACTIONS SOLUTIONS TO PROBLEM MATERIALS | | | | |Status: | | Q/P | |Question/ | | | |Present | | in Prior | |Problem | |Topic | |Edition | |Edition | | | | | | | | |1 | |Tax formula | |New | | |2 | |Transactions with no income tax effect | |New | | |3 | |Gross income: exclusions | |Unchanged |3 | |4 | |Gross income: inclusions | |Unchanged |4 | |5 | |Income tax: international considerations | |Unchanged |5 | |6 | |Effect of AGI on some deductions from ...
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...Chapter 8 Individual Income Tax Computation and Tax Credits SOLUTIONS MANUAL Discussion Questions 1. [LO 1] What is a tax bracket? What is the relationship between filing status and the width of the tax brackets in the tax rate schedule? A tax bracket is a range of taxable income that is taxed at a specified tax rate. Because only the income in the particular range is taxed at the specified rate, tax brackets are often referred to as marginal tax brackets or marginal tax rates. The level and width of the brackets depend on the taxpayer’s filing status. The tax rate schedules include seven tax rate brackets. The rates for these brackets are 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%. In general, the tax brackets are widest for Married filing jointly (for example, more income is taxed at 10%), followed by Head of household, Single, and then Married filing separately (the brackets for Married filing separately are exactly one-half the width of the brackets for Married filing jointly, and the width of the 10% and 15% brackets for Single and Married filing separately are the same). 2. [LO 1] In 2014, for a taxpayer with $50,000 of taxable income, without doing any actual computations, which filing status do you expect to provide the lowest tax liability? Which filing status provides the highest tax liability? For a taxpayer with $50,000, the married filing jointly filing status should provide the lowest tax liability in 2014 because the MFJ tax rate schedule taxes more...
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...the 1990s: assuring upward mobility for working Americans in the new world economy; resolving the great American dilemma of race; restoring a civil society and strengthening the social ties that foster a sense of community; finding America’s proper role in the post-Cold War world; and rethinking the size, shape, and mission of government in an Information Age. The Foundation explores public controversies over cultural questions—race, ethnicity, gender, religion, morality, and civic education—that are often ignored in conventional political discourse. The Foundation’s Project on Tax Reform and Economic Growth works to develop a tax reform program that is consistent with a progressive distribution of the tax burden, and can help promote stronger job and business formation, greater productivity, and higher family incomes. This report is the first of two new reports outlining the essential features of such a tax reform program. The preface contains more information about the four previous reports produced by this project. To order previous reports or additional copies of this report, please call the Foundation at (202) 546-4482. They are also available on the World Wide Web at http:/ /www.dlcppi.org/economic.htm. The Foundation is a nonpartisan research and educational foundation associated with the Democratic Leadership Council and the...
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...As recounted by Wanniski (associate editor of the Wall Street Journal at the time), in December of 1974 he had been invited to have dinner with me (then professor at the University of Chicago), Don Rumsfeld (chief of staff to President Gerald Ford) and Dick Cheney (Rumsfeld’s deputy and my former classmate at Yale) at the Two Continents Restaurant at the Washington Hotel in Washington, D.C. (just across the street from the Treasury). While discussing President Ford’s “WIN” (Whip Inflation Now) proposal for tax increases, I supposedly grabbed my napkin and a pen and sketched a curve on the napkin illustrating the trade off between tax rates and tax revenues. Wanniski named the trade off “The Laffer Curve.” I personally don’t remember the details of that evening we all spent together, but Wanniski’s version could well be true. I used the so-called Laffer Curve all the time in my classes and to anyone else who would listen to illustrate the trade off between tax rates and tax revenues. My only question on Wanniski’s version of the story concerns the fact that the restaurant used cloth napkins and my mother had raised me not to desecrate nice things. Ah well, that’s my story and I’m sticking to it. The Historical Origins of the Laffer Curve The Laffer Curve, by the way, was not invented by me; it has its origins way back in time. For example, the Muslim philosopher, Ibn Khaldun, wrote in his...
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... | | | | | | 1 |LO 1, 2, 5 |Effect of state and local taxes on decision making | |Unchanged |1 | | 2 |LO 1 |Proportional and progressive rates contrasted | |Unchanged |2 | | 3 |LO 2 |Ad valorem tax on realty: conversion from tax-exempt to | |Unchanged |3 | | | |residential status | | | | | 4 |LO 1, 6 |Adam Smith and canon of convenience | |Unchanged |4 | | 5 |LO 2 |Use taxes | |Unchanged |5 | | 6 |LO 2 |Excise and general sales taxes compared | |Unchanged |6 | | 7 |LO 2 |Federal gift tax and use of annual exclusions | |Unchanged |7 |...
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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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...Personal finance Assignment Student Number 09005308 Question 1 a) Buying a house in the UK typically takes 12 weeks, which is twice the amount of time it takes in other developed countries (Home.co.uk. 2010). Home.co.uk (2010) is an independent property search engine and believes there are seven stages to buying a house, as shown below: 1) How much can you afford and get a mortgage agreement in principle - it is important to find out how much you can borrow to give you an idea of what type of house you will be able to afford. Also, speak to a mortgage advisor to find a mortgage that will suit you. 2) Choose your home – View several properties before choosing your home. 3) Hire a solicitor – the average cost for solicitor is £1060 (guardian. 2008), therefore get more than one quote from solicitors. 4) Make an offer – this is normally done through the estate agent. 5) Do any survey and valuations- many mortgages required you to take a variety of surveys and a valuation. 6) Exchange contracts- at this point you will normally exchange contracts and hand over a deposit for the house. 7) Finalise your contract details and move in b) A mortgages process is a long process and can take between 6 to 10 weeks (shire direct. 2010). The process can also be very complex, therefore the Consumer Financial Education Body (2010) have spilt the process into four simple stages as shown below: 1) The first stage is to get advice from a financial...
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...CHAPTER 3 COMPUTING THE TAX SOLUTIONS TO PROBLEM MATERIALS | | | | |Status: |Q/P | |Question/ |Learning | | |Present | in Prior | |Problem |Objective |Topic | |Edition | Edition | | | | | | | | | | | | 1 |LO 1 |Tax formula | |Unchanged |1 | | 2 |LO 1, 5, 8, 9 |Transactions with various income tax effects | |Modified |2 | | 3 |LO 1 |Gross income: inclusions | |Modified |3 | | 4 |LO 1 |Gross income: exclusions | |Modified |4 | | 5 |LO 1 |U. S. income tax: applicable to U.S. citizens and residents | |New | | | 6 |LO 1 |“Deductions for”: meaning and various designations | |Unchanged |6 ...
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