...The location: June 15, 2007--Escala Group, Inc. (ESCL) today announced that it is undertaking a facilities consolidation plan designed to reduce fixed costs and improve operating efficiency. Under the plan, the Company's North American Philatelic Operations, which is currently operating out of three locations in West Caldwell, NJ, Danbury, CT, and New York City, will be combined under one roof in newly leased facilities in Bethel, CT. In addition, the Company's corporate headquarters will move from New York City to the same Bethel, CT location. The consolidation plan is expected to be fully implemented by October 30, 2007. Reference regarding location of facility: http://www.spectrumgi.com/Investor_Relations/News.aspx/56/Escala-Group-Announces-Facilities-Consolidation-Change-in-Corporate-Headquarters.aspx The fraudulent act: Rhe founder and former CEO of Escala Group, Inc., Gregory Manning was charged, along with former CFO Larry Lee Crawford, with disclosure and accounting fraud violations concerning related party transactions between Escala and its parent company, Afinsa Bienes Tangibles, S.A. ("Afinsa"). Escala, now known as Spectrum Group International, Inc., was a network of companies in the collectibles market specializing in stamps. Afinsa was a privately held Spanish company that sold investments in portfolios of stamps in Europe. The Commission's complaint, filed on March 23, 2009, and amended on August 28, 2009, among other things, alleged a fraudulent business...
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...Taxation 1 – Assignment 1 Q1) 1-7 Net 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 (Division B Income) $52,550 As the Gambling winnings and losses related to an occasional gambling habit, the income is non-taxable and the losses non-deductible. There will be an allowable Capital Loss carry over of $9,320 (14,320 – 23,460 = ) Case B: Income Under ITA 3(a) Employment Income $64,000 Business Income (see ITA 3(d) below) $NIL Interest Income $ 2,600 Property Income $ 4,560 $ 71,160 Income Under ITA 3(b) Taxable Capital Gains $32,420 Allowable Capital Losses ($29,375) $ 3,045 Balance from ITA 3(a) And (b) $ 74,205 Subdivision e deductions ($12,480) Balance under ITA 3(c) $ 61,725 Deduction Under ITA 3(d): Business (50% of partnership) ($72,470) Net Income for Tax Purposes (Division B Income) $NIL There is no Capital Loss to carry over as the Capital Gains exceeded the Capital losses in the year, using up the entire deduction....
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...the approach behind it is flawed. Liberal Australia would have you believe that tax cuts favouring the wealthy will trickle down the economy and benefit everyone. Through more jobs being created and a higher average wage, unfortunately this just isn’t the case. Trickle Down Economics was introduced as Supply Side Economics and later renamed Reaganomics in the Ronald Reagan era of American government (1981-1989). The wealth gap at the time was relatively high but acceptable sitting at the top 10% of the country owning approximately 30-35% of the wealth. With the new government came a...
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...and Public Policy, 4th edition Additional readings as listed on the course outline COURSE PREREQUISITES: Econ 206 and Econ 207 COURSE DESCRIPTION: Public Finance deals with the taxing and spending activities of government. It is alternatively called Public Sector Economics or Public Economics. The focus of the course is on the microeconomic functions of government, and in particular the way that government affects the allocation of resources and the distribution of income. The analysis of the spending activities of government will include a discussion of public goods, externalities, education, welfare programs, Social Security and health care. On the tax side, we will build a framework for tax analysis, and then apply this framework to the personal income tax, the corporation income tax, and other U.S. taxes. COURSE OBJECTIVES: 1. To understand the economic rationale for government involvement in a market economy. 2. To learn about the major sources and uses of revenue in the United States fiscal system. 3. To develop your ability to analyze the equity and efficiency effects of government spending and taxation programs. 4. To learn how economic principles can be applied in an analysis of political decision-making. 5. To understand the...
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...and for some others, it causes complete downfall. Here we examine five very diverse papers written on five important players in any economy and analyze whether the writers are correct in their assessment of these factors. The five facets examined in these papers are Optimal Tax Policies, Foreign Exchange Rates, Global Energy Prices, Monetary Policies of Banks and The role of Productivity in Economic Growth. Various Facets of Global Economy In today’s world, economy is one of the most talked about point everywhere in the world. Every single politician, industrialist, worker and even students have their own take on what should be done in order to improve the great depression it seems we are in. Unemployment may have seem to have decreased in the United States, but it is still lagging behind many other major economies all around the world. It is important for every common man to understand the various factors that play a part in economic growth or downturn. The first factor is determining the optimal tax policy. Abuselidze (2013) analyzes how far an optimal tax policy goes towards strengthening the macroeconomic stabilization. His analysis provides a great insight into why forming a perfect tax code that pleases everyone is so difficult. Obama and McCain had so many...
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...are independent and undecided about who to vote for. Mr. Trump has a very decorated background and has had a tremendous amount of success building his value. Trump is a conservative that offers conservative reforms through bold strategies in order to connect with constituents. His far-right position leaves room for discrepancies, like the other candidates also running for the 2016 Presidential Cabinet. Donald Trump is a conservative Republican supported by his impressive history to foster business across an array of fields. If he should go on to become the next president of the United States his proposal to reform regulations such as veteran affairs alongside a compelling tax reform may come to fruition. His positions are traditionally renewed, therefore making him appealing to the older, upper class American citizens who can merely stand the current ways presented by President Obama’s administration. According to Trump’s campaign website, he is opposed to the current state of the Department of Veterans Affair (VA). He offers his plan to reform it in three stages: First, to ensure our veterans get the care they need wherever and whenever they need it, second, to support the entire image of a veteran, and last, to make the VA great again(Donald Trump). In emphasizing to help...
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...us that we’re heading towards doom; all we have to do is watch the TV or use the internet and read about the fiscal cliff. Almost all Americans will take a financial blow next year and low income families would be among the hardest hit, if the White House and Congress fail to solve the “fiscal cliff” of big tax increases and spending cuts set to start January 2nd. With the rise in payroll-tax increases, Expiration of the Bush tax cuts decreases in the Child Tax Credit, and the Dividend-Tax Increases, a middle-class family would be hit the hardest. According to Matthews, “For instance, if a couple together makes $82,000 and have four children and pay child care and even though money was tight were able to invest in $10,000 worth of blue-chip, dividend-paying stocks, in addition to socking away money in their 401(k)s; their taxes would go up $530 a month, or more than $6,000 a year. The Bush Tax Cuts have generated income, dividends and long term capital gains for the Americans and has been serving the purpose of providing an incentive to the American corporations to expand operations. Under the old scheme of number of tax benefits were also offered like the child tax credit. Thus with the withdrawal of these...
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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 other country or region is able to. ABSOLUTE POVERTY An economic condition of lacking both money and basic necessities needed to successfully live, such as food, water, education, health care and shelter. ADULT LITERACY RATE A measure of the number of people of working age as a proportion of the total population in a country who are able to read and write. AGGREGATE DEMAND The total demand for goods and services in an economy. It is determined by consumer spending, investment, public expenditure and spending by overseas residents on exports. AGGREGATE SUPPLY The total output or supply of all goods and services in an economy that all producers are willing and able to supply. ANCILLARY FIRMS Firms which provide goods and business services for other firms; they are often located near to their main business customers. APPRECIATION (in the value of a currency) A rise in the rate at which a national currency can be exchanged for another currency or currencies, i.e....
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...Tax Reform Position Paper Taxes are necessary because they fund the services provided by government. Americans will pay trillions in taxes. Beyond funding government, the federal tax system has profound effects on the economy as a whole and on individual taxpayers, both for today and tomorrow. Taxes change people’s behavior and influence the economy by altering incentives to work, consume, save and invest. This affects economic growth and future income, therefore, future government revenues. In this paper I will highlight the pros and cons of flat tax, national sales tax, and the current tax system. Flat Tax Simplicity is considered a significant benefit of the flat tax system. One tax rate makes for easy calculation by the Internal Revenue Service (IRS) and straight forward payments from taxpayers. Because the flat tax taxes only one income, it is easier to understand and to report. The flat tax remains a popular idea in part because it eliminates double taxation. It eliminates the death tax, capital gains tax and taxation of savings and dividends. Fairness remains a popular feature of the flat tax. A taxpayer who makes $5000 pays the same tax rate as someone who earns $500,000. The taxpayer who makes more pays more taxes simply because their income is greater. It does not discriminate based on income; everyone pays the same percent. Some of the cons of the flat tax are that the system penalizes the low-income portion of the population. For example, if the...
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...Chapter 22 Xiaonan Li 11. a. No. b. No. c. No. d. Yes. e. Yes 19. a. – d. + g. – j. + m. + b. + e. – h. – k. + n. – c. – f. + i. – l. – o. – 24. a. Net sales $140,020 Depreciation recapture income 14,000 $154,020 Deduct: Cost of goods sold $42,000 Administrative expenses 15,000 Depreciation expense 13,000 (70,000) Nonseparately computed income $ 84,020 b. $84,020 ÷ 4 = $21,005 28. a. Absent a per-books election, the income is allocated by assigning an equal portion of the annual income of $1 million to each day (or $2,739.72 per day) and allocating the daily portion among the two shareholders. Thomas is allocated 50% of the daily income for 90 days from January 1 through April 1, or $124,657.72 ($2,739.73 ÷ 2 ×91). Thomas’s estate would be allocated 50% of the income for the 274 days from April 2 through December 31, or $375,342.28 ($500,000 – $124,657.72). Ralph would be allocated $500,000 for the full year. b. If the per-books election is made, the income of $400,000 from January 1 through April 1 is divided equally between Ralph and Thomas, so that each would be allocated $200,000. The income of $600,000 from April 2 through December 31 is divided equally between Ralph and Thomas’s estate, or $300,000 to each. 34. a. Beginning AAA $715,000 Add: Sales income $206,000 ...
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...Executive Compensation has become the most contentious issue in corporate governments. Many critics claim that poorly designed executive compensation incentives helped caused the recent financial collapse, but disagree widely about what was wrong with those designs. Some also claim that many American executives are overpaid, that their pay reflects their own influence over their boards rather than a disinterested evaluation of their worth. Management and investors are wrestling over their roles in structuring executive compensation through sign on pay and the role of proxy advisory services. We will be addressing Executive Compensation in three parts. We will begin with where we have been, where are we presently and then where we need to be in the future. We will go back to October 23, 2008, which was the height of the financial crisis. The Federal Reserve had intervened to save BEAR-STEARNS from financial collapse. In the pervious month Merrill-Lynch had been sold to Bank of America and AIG had just received a $85 billion dollar bail-out from United States taxpayers. The 158-year-old Lehman Brothers financial firm had just collapsed and filed for bankruptcy. It was an uncertain and extremely precarious time. The then President Bush asked for an astonishing 700 billion dollars to prevent a contagion from spreading through the financial markets and it was approved by Congress. So, what went wrong? How did our nation go from record surpluses in the late 90’s to the most devastating...
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...Author: Creation Date: Last Updated: Version: 1.0 Release: 11.5.10 Contents SA: Review Multi-Org Profile Options 1 AP: Choose Set of Books 2 PO: Define Inventory Organization Parameters 3 AP: Define Financial Options 4 AP: Define Expense Report Templates 6 AP: Define Payables Options 7 AP: Define Banks 10 AP: Define New AP Signing Limits 13 AP: Define Tax Codes 14 AP: Define Tax Groups 15 AP: Define Tax Reporting Entities 16 OIE: Define iExpense Policies 17 Enable Expense Allocations 17 Set Up Required Expense Fields 18 Define Receipt Notification Rule Set 19 Assign Receipt Notification Rule Set 20 Define Mileage Rate Schedule 21 SA: Set OIE Profile Options 23 AR: Define AR System Options 24 AR: Open Accounting Periods (Required) 28 AR: Define AutoAccounting 29 AR: Define Transaction Types 32 AR:...
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...the transfer was $500,000 and its ACB was $120,000. Mary has a net capital loss carryforward of $25,000 (based on a 50% inclusion rate). Mary received the following consideration in the transfer: Note payable to Mary $ 120,000 3,500 Class A preferred shares issued for $100 each, having a par value of $100, and retractable at $100 350,000 3,000 common shares issued for $10 each 30,000 $500,000 No Class A preferred or common shares were issued prior to the transfer and no other shares have been issued since. Mary comes to consult you on the tax consequences of the transfer. She was told that it was possible to make an election for tax purposes so that there would be no tax consequences on the transfer. Mary gives you all the information with no verification on your part. Required (20 marks) In a letter addressed to Mary, give her your opinion on how the transfer should be carried out under subsection 85(1) so that she will have no immediate tax consequences and will benefit from all the available tax attributes. You should also tell her the PUC and ACB of the Class A preferred shares and the common shares that she has received and deal with the tax consequences on the eventual redemption of the 3,500 Class A preferred shares. (2 marks will be awarded for presentation, spelling, grammar, and the professionalism of your written communication.) (3 marks) Mary informs you that in 2015, she will make a capital contribution of $100,000 to Sandy...
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...Overseas Business Risk - Brazil Information on key security and political risks which UK businesses may face when operating in Brazil. Political and Economic Between 2002 and 2010 more than 35 million Brazilians moved from classes D and E to class C. In recent years, Brazil is the only BRIC country that successfully achieved high economic growth rates while reducing inequalities. With a high propensity to consume, growing demand from this new middle class represents a huge opportunity for companies to exploit. The Brazilian tax system is complex and reportedly prone to corruption Some positive developments in relation to corruption and investment can be recognised as Brazil is often cited for its strong legal framework expected to decreasing corruption, and the country is occasionally used as a role model for other developing countries, yet effective enforcement of laws is a problem. Economic Overview: In the last decade Brazil has shown economic stability and was one of the first countries to recover from the crisis of 2008/2009. The country is a member of Mercosul, and is the biggest economy in South America, accounting for over 50% of the continent’s GDP. The attractiveness to foreign investors is justified by its solid economic fundamentals (with Brazil holding an Investment Grade from all three main ratings agencies) and its large consumer market. . In 2011, Brazil’s main buyer was China with a 17.3% share of Brazil’s exports, followed by U.S. with 10%, Argentina...
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...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 and the degree of vigor with which the taxing power may be employed in order to raise revenue. b. Oliver Wendell Holmes Dictum “Power to tax is not the power to destroy while this court (US Supreme Court) sits” – power to tax knows no limits except those expressly stated in the Constitution. Marshall and Holmes Dictums Reconciled: Although the power to tax is almost...
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