...The alternative minimum tax (AMT) won’t be used to lower Hastings Printing’s tax liability. According to the Tax Policy Center, the AMT was put into tax code in 1969 and a part of the Tax Reform Act of 1986. This type of tax would be in addition to the normal tax requirement. It’s generally used to ensure that no one gets out of paying their taxes with excessive incentives. Hastings would be subject to a 20% corporate rate and that would be applied to the alternative taxable income. Overall, this idea won’t save the Hasting Printing Corporation any money and shouldn’t be considered in the future unless they want to pay more in taxes. REFERENCES Lyon, A. (N.D.). Alternative Minimum Tax, Corporate. Tax Policy Center. Retrieved from: http://www.taxpolicycenter.org/taxtopics/encyclopedia/Alternative-Minimum-Tax-corporate.cfm. Dennis-Escoffier, S. & Fortin, K. (2014). Taxation for Decision Makers (2015 Ed.). Wiley Custom Learning Solutions. Hoboken, NJ. a.) According to the Tax Foundation, Tax Freedom Day is when the nation has enough money to pay the year’s total tax bill. b.) The Tax Freedom Day in 2013 it was April 13th, in 2014 it was April 21st and in 2015 it was April 24th. c.) Using the above information I would guess that April 30th. I chose this date because every year the date gets a little farther away from the previous years’. d.) The state of Ohio’s Tax Freedom Day was April 17th, 2015 (The Courier, 2015). There could a multitude of reason such...
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...CHAPTER 2 TAX ADMINISTRATION Problem 2 – 1 TRUE OR FALSE 1. True 2. False – not the BIR, but the Department of Finance 3. False – the BIR is responsible to collect national taxes only. 4. False – The review shall be made by the Court of Justice. 5. True 6. True 7. False – The Secretary of Justice and the Courts also interprets the provisions of the Tax Code. 8. False – the fact that taxes are self-assessing the BIR assessment is necessary to ensure the reliability of the ITR. 9. False – the BIR or the Government is not allowed by law to appeal to the CTA. (Acting Collector of customs vs. Court of Appeals, Oct. 31, 1957) 10. True 11. False – Appeal to the SC shall be made within 15 days from the receipt of the decision of the CTA. 12. False – the CIR can conduct a jeopardy assessment when there are no accounting records. 13. True 14. False – the taxpayer needs to waive first his right on the secrecy of bank deposits before BIR can inquire into his bank deposits. 15. True Problem 2 – 2 TRUE OR FALSE 1. False – there must be a Letter of Authority. 2. False – the supporting documents must be submitted to the BIR within 60 days from the date a protest is filed. 3. True 4. True 5. False – destraint as a tax collection method is applicable only to personal property. 6. False – criminal violations already filed in court are not subject to compromise. 7. True 8. False, collection must be within 5 years 9. True 10...
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...be made within 21 days from the date of delivery and submission of bill supported by copies of work order and GRN. 4. Identification: Distinct mark of manufacturer must remain printed at size (0.50in × 0.50in) on the cartons. 5. TAX : AIT, VAT or any other Tax shall be applicable according to Govt. rules and regulations. Gum Tape: 1. Delivery : To Super Oil Refinery Ltd, Shimrail, Narayangonj within 3days from receiving this order. 2. Rejection: Any supplied product below the specification and standard approved sample will be rejected and you are to replace. 3. Payment: Payment will be made within 21 days from the date of delivery and submission of bill supported by copies of work order and GRN. 4. Length : Average Length will be decided by random check of 10 rolls at delivery time. 5. TAX : AIT, VAT or any other Tax shall be applicable according to Govt. rules and regulations. CANE: 1. Delivery : To Super Oil Refinery Ltd, Shimrail, Narayangonj within 3days from receiving this order. 2. Rejection : Any supplied product below the specification and standard approved sample will be rejected and you are to replace. *up to 2% deviation in weight will be tolerable. The value of the product lost due to defective can will be deducted as compensation. 3. Payment : Payment will be made within 21 days from the date of delivery and submission of bill supported by copies of work order and GRN. 4. TAX : AIT, VAT or any other Tax shall be applicable...
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...TAXATION – TUTORIAL QUESTIONS QUESTION 7 Tax can only be collected when it is due. Where the tax is due, there are two principal modes of collection. These are judicial and non-judicial. The question is better with in three parts. The first part will deal with conditions under which a tax becomes due. The second part will deal with the judicial mode of tax collection. The third which is the main thrust of this question will outline the four non-judicial modes of tax collection. Under the law, the commissioner can collect tax only when the tax is due. And tax becomes due under different circumstances. For a tax payer subject to self-assessment under s. 78, the due date is when he files his assessment with the commissioner. Under s 72(7) the commissioner may demand tax earlier than the basis period where the tax payer dies during the basis period or becomes bankrupt or is wound-up or goes into liquidation, or is about to leave Ghana indefinitely or is about to cease activity in Ghana, under those circumstances, the due date is the date the commissioner shall specify in the notice demanding the tax. For those who pay tax by installment, their due date is the date each installment is due as provided under division III of part X of chapter 1. For everybody else, the due date is within 30 days of the date of service of the notice of assessment. Where the tax is due as explained above, the amount due is treated in law as a debt due to the commissioner. The...
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...Contents Introduction2 Detail 3 Task 1 3 Task 213 Task 319 Task 420 Conclusion27 Reference27 INTRODUCTION We are in business as tax practitioner and have recently gained three new clients. They are Simon - a manager working for Able plc, Oliver Green - a self-employed running a health food shop and a corporation operating in UK. We are assigned to help them calculate their relevant income, expense and allowance, income tax payable for the tax year 2006/07, capital gain tax payable, the profit chargeable to corporation tax, corporation tax liability and give them some advices to reduce the personal tax liability. TASK 1 Simon was born in May 14, 1954 and is a manager working for Able plc, a large UK resident company. Accordingly, in the period 2006 – 2007, he was 53 years old. As a result, his personal allowance (PA) for 2006/07 is £5,035. In the period 2006 – 2007, Simon received a gross salary of £45,000 and in February 16, 2007 he received a bonus of £5,000 based on Able plc’s results for the year ended December 31, 2006. His earning is higher than £8,500. Therefore, in this case, special rules for P11d employees will be applied. The main benefits for the special rules exist are: (a) Assets loaned to the employee for private use (b) Ancillary services connected with living accommodation (c) Cars provided for private use (d) Fuel provided for private use (e) Vans provided for private use (f) Beneficial loans Furthermore, Simon received the following benefits...
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...vacation home into a rental property I have some recommendations for you. I am going to give some options for your consideration. Your vacation home could be converted into a rental property and you could get $4,500 tax-free. If you charge $150 per night to rent it, the vacation home would have to be used at least 30 days per year to generate the income necessary. However, you can rent the vacation home for 15 days per year this will make the income tax-free. If you use the property for15 days and rent it for 15 days you would receive a yield that would be beneficiary for you. You vacation home will appreciate over time, and that capital gain from the sale (if you ever decide to sell it) would be probably tax-favored, maximum rate of 15% if the property was not depreciated. Another good outcome is to rent the property until you are ready to retire. Make sure that you can rent your property with good tenants. Maybe you do not want to manage the property; some companies can manage it for you for a fee. When you are ready to retire you can sell the rental property and use the 250.000/500.000 of gain tax free to enjoy a better and relaxed retirement. You can always convert the rental property into residential without paying taxes on the property. You can make a “tax free exchange” of the rental before converting it into a residential property. This way you can go back to what you have now if you are not satisfied with the outcome of you having to rent one of your properties...
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...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 Dividend income 17,000 Interest...
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...Tax Research and Bibliography University Instructor: Introduction This paper addresses three aspects of corporate tax research and its associated bibliographies to clarify the subject matter, thus providing credence to the work and its authors. Three subject have been explored; first examined was ‘equal opportunity and disabled workers’, next was the deductibility of tuition, and finally, the matters of ‘tax court and TEFRA’ were looked at and provided a nice grouping of responses over ten years. Research Results Subject 1: Equal opportunity and disabled workers, returned one result in ten years. Lytes v. DC water & sewer auth. No. 08-7002 936 (UNITED STATES COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA CIRCUIT 2005) A (Appellant) former employee sought judicial review of the United States District Court for the District of Columbia's entry of summary judgment in favor of appellee, his former employer, on his claim that the employer refused to accommodate his disability and then terminated his employment, in violation of the Americans with Disabilities Act of 1990 (ADA) and while the appeal was pending the ADA Amendments Act of 2008 became law. Only the district court's holding that the employee was not actually disabled was challenged and in applying the ADA prior to its amendment, the employee failed to discuss his functional capacity at the time of the alleged discrimination. In fact, the employee never discussed or provided any proof...
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...Taxation System Work? • The Income Tax System in Canada • Types of Income • Calculating Income Tax Payable • Taxation of Investment Income • Tax-Deductible Items Related to Investment Income How are Investment Gains and Losses Calculated? • Disposition of Shares • Disposition of Debt Securities • Capital Losses • Tax Loss Selling What are Tax Deferral Plans? • Registered Pension Plans (RPPs) • Registered Retirement Savings Plans (RRSPs) • Registered Retirement Income Funds (RRIFs) • Deferred Annuities • Tax-Free Savings Accounts (TFSA) • Registered Education Savings Plans (RESPs) • Pooled Registered Pension Plans (PRPPs) What are Tax Planning Strategies? Summary 25•2 © CSI GLOBAL EDUCATION INC. (2013) LEARNING OBJECTIVES By the end of this chapter, you should be able to: 1. Describe the features of the Canadian income tax system, calculate income tax payable, and differentiate the tax treatment of interest, dividends and capital gains (and losses). 2. Calculate capital gains and capital losses and assess strategies for minimizing tax liability. 3. Describe and differentiate the different tax deferral plans and their uses. 4. Identify basic tax planning strategies and discuss their advantages. TAXES AND INVESTMENTS It is often said that there are only two certainties in life: death and taxes. Taxes are a reality of life for Canadians and they affect many personal and investment decisions. Complicating matters is the differential tax rates for income, dividends, and...
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...x Chapter 1 Summary of End-of-Chapter Problem Revisions |2012 Edition |2011 Edition | | |Problem Number |Problem Number |2012 Edition Modifications | |1 |1 | | |2 |2 | | |3 |3 | | |4 |4 | | |5 |5 | | |6 |6 | | |7 |7 | | |8 |8 | | |9 |9 | ...
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...[pic] Virtual University of Pakistan [pic] Evaluation Sheet for Internship Report Spring 2010 FINI619: Internship Report (Finance) Credit Hours: 3 |Evaluation Criteria |Result | |Written Work Status |Pass | |(Internship Report) | | |Presentation & Viva Voce | | |Final Result | | Name of Student: Sajid Naveed Khan Student’s ID: MC080402910 Supervisor: Mistakes are highlighted so consider them while preparing PPT Slies. You should describe the tasks assigned to you as well as functions of finance department by giving headings. INTERNSHIP REPORT ON M/s Naveed Zafar Husain Jaffery & Co. Chartered Accountants [pic] Under the kind Supervision of Respected Instructors of Virtual University of Pakistan SESSION 2008-2010 MBA Finance SUBMITTED BY: Sajid Naveed Khan MC080402910 Submitted on: July 30, 2010 [pic] DEDICATION I dedicate this project to my Mother Who Sacrificed her wills on my wills and Encouraged me during the preparation of this project And whose prayers are always with me wherever I am ACKNOWLEDGEMENT ...
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...Statement of problem: John and Susan plan to marry December 12, 2012, and want to maximize their tax returns for the year 2012 however tax concerns came along such as effect on tax liabilities and marriage penalty tax. Following calculation of taxes owed for the current year a higher tax penalty was determined. It was suggested by the clients that they individually file single until the day before they married, terminate their tax years and subsequently file a “short period” joint tax return for the time that they are married. Conclusion: On the Donald R. Pierce, TC Memo 1980 - 563. , Code Sec(s) 143 it states how “no matter what is the taxpayer’s status during the year, the law will only use taxpayer’s status on the last day of the year December 31.” The approach that the couple wants to take is illegal according due to the fact that once a “man and woman are legally married they are considered married for the entire year” per IRS Sec 7703-1. Furthermore, John and Susan will not be able to file as they suggested, and will have to accept the “marriage penalty tax.” Ultimately they could face severe penalty taxes by the IRS either for negligence at the time of filing their return or any other applicable reason. Supporting Evidence: As evidence to my conclusion, to determine the situation of the couple and if they could file their return as they suggested I used Donald R. Pierce, TC Memo 1980-563. , Code Sec(s) 143. On it is clearly stated the situation of marital status...
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...Research Problem 1 1. Discuss the different types of interests and the IRS rule related to the deductibility of each type for tax purposes. Interest is a fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets. There are different types of interests, including investment interest, qualified residence interest, student loan interest, and personal interest, which are either deductible or nondeductible. Personal interests are interests on car loans, credit cards, loans for appliances and furniture and interest on loans made by one person to another. Personal interest is nondeductible. If interest is paid on a qualified student loan, taxpayers may be able to deduct the interest as deduction for AGI. Generally, the allowable amount for student loan is lesser of $2,500 or the amount of interest taxpayer actually paid. Investment interest is interest paid on money borrowed to purchase or hold investment property. It is tax deductible on income tax return up to the amount of the net investment income. However, if the interest is incurred to produce tax exempt income, it cannot be deducted. Investment interest is not any qualified home mortgage interest or any interest taken into account in computing income or loss from a passive activity. The qualified residence interest is interest taxpayer pays on a loan secured by one’s main home or a second home. The loan may be a mortgage to buy primary home, a second mortgage, a home equity loan, or line...
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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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...Subject to constitutional and inherent restrictions, the power of taxation is regarded as comprehensive, unlimited, plenary and supreme. Scope of Legislative Taxing Power 1. Amount or rate of tax 2. Apportionment of the tax 3. Kind of tax 4. Method of collection 5. Purpose/s of its levy, provided it is for public purpose 6. Subject to be taxed, provided it is within its jurisdiction 7. Situs of taxation TAXES – enforced proportional contributions from the persons and property levied by the law-making body of the State by virtue of its sovereignty in support of government and for public needs. Characteristics of Taxes 1. forced charge; 2. pecuniary burden payable in money; 3. levied by the legislature; 4. assessed with some reasonable rule of apportionment; (see theoretical justice) 5. imposed by the State within its jurisdiction; 6. levied for a public purpose. Requisites of A Valid Tax 1. should be for a public purpose 2. the rule of taxation shall be uniform 3. that either the person or property taxed be within the jurisdiction of the taxing authority 4. that the assessment and collection of certain kinds of taxes guarantees against injustice to individuals, especially by way of notice and opportunity for hearing be provided 5. the tax must not impinge on the inherent and Constitutional limitations on the power of taxation Theories and Bases of Taxation 1....
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