...TORONTO, ONTARIO, CANADA EXECUTIVE SUMMARY This report is highly recommended for companies planning to go international. The basis of selecting a suitable location for a new factory is great importance towards the success and survival of company in the long run. Selecting of a good location for the factory enables employers to spend less money but still increase profitability for the company. The cost of manufacturing a product can be reduced through a proper factory location selection by considering such factors as minimum wage, employment insurance, government pension plan and other taxes which will be discussed later in this report. Location that offers lower cost always attracts more companies and investors. And in this report, Bloomington will be more attractive to company since it offers lower minimum wage and employment insurance, pension contribution and other taxes. After calculating the total cost to open new plant in Bloomington and Toronto, the supply chain analyst’s final decision will be made based on those costs. TABLE OF CONTENTS INTRODUCTION 2 BACKGROUND 2 DISCUSSION 2 Minimum Wage 2 Government Pension Plan 3 Other factors 3 CONCLUSION 4 Works Cited 5 INTRODUCTION As a supply chain analyst, it is very important to consider some factors which might impact positively or negatively in location of a new factory. By analyzing such factors as minimum wage paid, employment insurance, government pension plan and other taxes, the report will...
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...provisions. The module concludes with the study of two basic concepts: first, who must pay tax in Canada; second, what is the concept of income for purposes of the ITA. • The most desirable characteristics of an income tax are: o horizontal equity o vertical equity o neutrality o flexibility o certainty o feasibility and efficiency • The most important guidelines for evaluating tax policy are: o equity/fairness o simplicity and compliance o balance o stability o economic growth o international competitiveness • Since the ITA is used not only to collect taxes, but also to implement social, economic, and monetary policies, it is amended regularly, which explains its complexity. • Accountants are often faced with ethical questions when preparing tax returns or providing tax advice. • Tax advisers and preparers should be aware of third party civil penalties under the ITA (section 163.2 — Third Party Civil Penalties and IC 01-1). • The administration of the ITA is Canada Revenue Agency's (CRA) responsibility. CRA has specific legislated enforcement and administrative responsibilities. • The Canadian tax system is based on self-assessment. Taxpayers must file T1 income tax and benefit returns on specified dates. Since the Canadian tax system is self-assessing, the burden of proof with respect to the assertions made by the taxpayer in the returns rests with the taxpayer. • Taxes are deducted at source on employment income. Taxpayers must generally make instalment payments...
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...Case 11.1 U.S. International Corporation Prepared By for ACC 502 Advanced Auditing School of Business /Graduate Studies Term A6/fall, 2013 September 09, 2014 Table of Contents Issues…………………………………………………………………………………………..1 Facts……………………………………………………………………………………………1 Analysis………….……….…………………………………………………………………….2 Conclusions…………………………………………………………………………………….3 Issues 1. What is the amount of U.S. taxable income for each Entity A–G? 2. What is the foreign tax credit allowed in the United States? a) What are they by basket and then in total? 3. What is the net U.S. tax liability? 4. What are the excess foreign tax credits (identify by basket)? Facts USIC’s $10 million income before...
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...Ch.2 * What is an economic system? Business organizations exist in an economic system or environment that provides employment for workers, pays taxes to as many as three levels of government (in Canada), and supports many charities. The system in which sellers and buyers can exchange goods and services is called a market. The local farmers market is a market. Farmers bring their fruits and vegetables to a single location to attract customers to that location. A stock exchange, like the Toronto Stock Exchange, is another example of a market. This is a market in which people can buy or sell shares. This chapter will review how the different countries of the world are divided between those that follow the concepts of command economies - socialism and communism - and those that have adopted a market economic system - capitalism and a mixed economy. The pursuit of social, economic, and political goals; the treatment, use, and motivations of the workforce; and market dynamics are different under each of the two approaches. Many countries have changed their economic systems. The strength of an economic system, or the economy overall, has a major impact on business. Canada enjoys a mixed economy. As such, economic concepts such Gross Domestic Product (GDP), productivity, unemployment rates, inflation, Consumer Price Index (CPI), and the overall business cycle, need to be carefully and continuously monitored, understood, and analyzed. Learning Goals Key Concept/Learning Goal...
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... and Canada………………………………………….……………….Page 15 Interview……………………………………………………………………………….Page 16 Conclusion………………………………………………………………………………Page 17 References………………………………………………………………………………Page 18-22 1 INTRODUCTION AND OVERVIEW Introduction The purpose of this paper is for us, as a team, to learn more about the culture in Canada relating to a business atmosphere as well as a casual atmosphere. It is important to be knowledgeable of cultures in other countries, due to possible international business opportunities that may arise in the future. Overview In this paper, we discuss a little bit about the history and demographics of the country as a whole. We also talk about the government, economy, and culture of Canada on a more detailed level. Later, in the paper management in Canada as well as a comparison of the U.S. and Canada is covered. 2 CANADA- THE COUNTRY History The first group to come to Canada was the Aboriginal people who were later joined by the French and British to form the culture of Canada (Wikipedia, 2010). Canada has also been influenced by the United States relating to its social culture (Wikipedia, 2010). Canada comes from the word “Kanata”, which translates to the word “village” (Wikipedia, 2010). The capital of Canada is Ottawa (About.com, 2010). Canada is comprised of three different territories and ten different provinces (About.com, 2010). The currency used in Canada is the Canadian dollar (Bank of Canada, 2010). Canada is also...
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...Union Density: Canada vs. USA Union density refers to the amount of paid employees that are union members. Historically, union density has increased between 1930 and 1950 from 14 percent to 30 percent. At that time union growth in Canada was extremely behind United States. This was caused by the legislation that was going on with workers and their rights to form and join unions. However it wasn't until the mid 1950s that Canadian union organizations caught up to the US. Despite this growth, the union density was yet on the verge of steady decline in both countries. The slow growth stage of union membership in the labor force was harshly upturned in Canada but remained the same in the US. As a result, for the past 30 years, a huge gap formed in the importance of unions and collective bargaining in the two countries, Riddell & Freeman (1993). The union density in the US had declined considerably in the past three decades. Although the two countries share many similarities between economies and industrial relations it’s likely to question why declines occurred in the unions of the United States but not in Canada. The reason why union density declined in the US was because of the structural changes of the economy and the labor force. Majority of the employment changes that took place in the past 30 years was that they moved away from manufacturing, focused more towards services, preferred white collar rather than blue collar, shifted from full time male workers to female...
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...industry of gambling provides a country’s respective government with large amounts of financial support. Furthermore, gambling is a multi-billion dollar industry worldwide. The misfortunes and losses of people are the monumental and overwhelming gains to government or non-government regulated casinos. The establishment of government owned casinos creates much-needed jobs for citizens as well it creates a flow of profit to the country. This inflow of cash assists the government in completing necessary tasks and is beneficial to the public because taxes are not being raised to complete such tasks. Over the last twenty-five years, the regulation of gambling has become prevalent. There are still many situations in which gambling occurs in a deregulated form such as Internet gambling, which although many people partake in, is not officially legal in Canada. The criminal code played a large part in the prohibition of gambling in Canada. In 1969, an amendment was made to the Canadian Criminal Code to allow the use of lotteries to help provincial governments fund projects (Stevens). Following the introduction of the lottery, in 1985, provincial governments were permitted...
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...Budgetary Research Review Vol. 4 (1) www.buget-finante.ro Goods and Services Tax (GST) in India: prospect for states by Mohd. Azam Khan1 and Nagma Shadab2 Department of Economics, Aligarh Muslim University, India Abstract: Goods and services tax (GST) is a broad based and a single comprehensive tax levied at every stage of the production and distribution chain with applicable set-off in respect of the tax remitted at previous stages. It is basically a tax on final consumption integrates the union excise duties, custom duties, services tax and state VAT. Presently around 140 countries have adopted the GST pattern, including India. The GST would be beneficial for the consumers as it reduces the final burden of taxation. For Government it leads the reduction of tax compliance efforts and administrative costs and for business units it leads transparency, complete set-off and removal of cascading effect of taxation. It is in this background that the present paper tries to explain the significance of GST in India and its prospects for states to generate revenue and ensure transparency in tax structure. This paper is organized into seven sections. Section two presents justification for dual structure of GST in India. The third part presents the rate structure under GST work in India. The fourth segment is concerned with the working of GST in India. The fifth part shows the international experiences of GST at state level in India. The seventh and final part is related to conclusion...
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...growth in 2004. NUMMI is constrained by acreage and TMMK shows no sign of growth. The exogenous factors that are largely out of Toyota’s control include the location of the plants in respect to the selling markets and the vendors and suppliers that produce the components for the production of the RX 300. An additional exogenous factor is the overall cost incentives to manufacture at a specific plant. For simplicity many factors were grouped into the cost incentive factor and it is weighted very heavily due to its significance and impact on the decision making process. Cost incentives are exogenous due to the vast amount of external factors that are out of Toyota’s control. This Factor harbors sub factors such as laws, regulations, taxes and duty’s, import export tariffs, tax incentives, cost of...
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...States of America or a resident of the United States or of a country contiguous to the United States (Canada or Mexico). Recently, there has been a court case that challenged the IRS’ definition of dependent with regards to the child tax credit. The case was Leah M. Carlebach and Uriel Fried, petitioners v. Commissioner of Internal Revenue, respondent. The Petitioners and their children live in Israel and were filing American tax returns. In 2007, the petitioners filed tax returns for 2004, 2005, and 2006 where they listed their children as dependents. The issue at hand is that the children didn’t receive American citizenship until 2007 and the parents claimed a dependency deduction for their children from 2004 through 2006, before they received their American citizenship. The respondent (the IRS) claimed that as long as the children weren’t citizens of the United States during that tax year, then they can’t be claimed as dependents to qualify for the child tax credit. The IRS assessed approximately $39,308 in owed taxes and additional penalties because of the improper tax deductions. The IRC code in question is IRC Sec. 152 (b)(3)(a) which is the source for the citizenship test for dependents. It says that the dependent must be a citizen of the United States or a resident of the United States or a resident in a country contiguous to the United States (Mexico or Canada). The Petitioners claimed that this section did not clearly state when the dependents must be citizens...
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...T DIF: LL1 REF: Page 15 OBJ: 1 5. Economists forecast business needs based on a deep understanding of past choices. ANS: T DIF: LL1 REF: Page 15 OBJ: 1 6. Microeconomics is the study of broad, economy-wide issues such as the unemployment rate, gross domestic product, and inflation. ANS: F DIF: LL2 REF: Page 15 OBJ: 1 7. Macroeconomic conditions impact day-to-day life by influencing variables such as the availability of jobs, the amount of take-home pay households have available after paying taxes, and the buying power of those incomes. ANS: T DIF: LL2 REF: Page 15 OBJ: 1 8. Luke is taking an economics class that focuses on decisions made by individual business firms and consumers. Luke’s class is concerned with microeconomic issues. ANS: T DIF: LL2 REF: Page 15 OBJ: 1 9.. Capitalism is based on private ownership, economic freedom, and fair competition. ANS: T DIF: LL2 REF: Page 16 OBJ: 2 10. Capitalism places paramount importance on the need for the government to intervene in the economy to ensure a fair and equitable distribution of income. ANS: F DIF: LL2 REF: Page 16 OBJ: 2 11. Market equilibrium is the point at which the supply curve intersects the demand curve. ANS: T DIF: LL2 REF: Page 20 OBJ: 2 12. Federal law has made all types of...
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...T DIF: LL1 REF: Page 15 OBJ: 1 5. Economists forecast business needs based on a deep understanding of past choices. ANS: T DIF: LL1 REF: Page 15 OBJ: 1 6. Microeconomics is the study of broad, economy-wide issues such as the unemployment rate, gross domestic product, and inflation. ANS: F DIF: LL2 REF: Page 15 OBJ: 1 7. Macroeconomic conditions impact day-to-day life by influencing variables such as the availability of jobs, the amount of take-home pay households have available after paying taxes, and the buying power of those incomes. ANS: T DIF: LL2 REF: Page 15 OBJ: 1 8. Luke is taking an economics class that focuses on decisions made by individual business firms and consumers. Luke’s class is concerned with microeconomic issues. ANS: T DIF: LL2 REF: Page 15 OBJ: 1 9.. Capitalism is based on private ownership, economic freedom, and fair competition. ANS: T DIF: LL2 REF: Page 16 OBJ: 2 10. Capitalism places paramount importance on the need for the government to intervene in the economy to ensure a fair and equitable distribution of income. ANS: F DIF: LL2 REF: Page 16 OBJ: 2 11. Market equilibrium is the point at which the supply curve intersects the demand curve. ANS: T DIF: LL2 REF: Page 20 OBJ: 2 12. Federal law has made all types of...
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...Taxation Assignment Registered Retirement Savings Plan (RRSP) Submitted By: Instructor: Date: What is an RRSP? A Registered Retirement Savings Plan (RRSP) is a tax-deferred account designed specifically for retirement savings. Any resident of Canada under the age of 71 who has earned income may establish and contribute to an RRSP. (Edward Jones, 2013) RRSPs are the Canadian government's way of helping citizens save their money for retirement. Saving for 30 to 40 years of retirement may seem like a long task, but well-planned contributions and withdrawals from your RRSP can be a great way to get enough money for when you retire. Objective The objective of a RRSP is to provide individuals with an account which they may contribute Tax deferred dollars that may be used for retirement. (Edward Jones, 2013) Types of RRSP’S Here are 3 types of RRSP: * Individual – This is the most common type of RRSP. It is an RRSP that is registered in your name. All investments, contributions, and tax advantages belong to the person the account is named under. * Spousal - This is a way for spouses to split income more evenly during retirement. The combined income tax would be lower compared to paying as a single RRSP. To qualify for a spousal RRSP you must have lived with each other for at least 12 months, have a child together by birth or adoption, or share custody of the other spouses child from a previous relationship. * Group – This is offered to help employees save...
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...This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title: Taxing Multinational Corporations Volume Author/Editor: Martin Feldstein, James R. Hines Jr., R. Glenn Hubbard, Eds. Volume Publisher: University of Chicago Press Volume ISBN: 0-226-24094-0 Volume URL: http://www.nber.org/books/feld95-1 Conference Date: April 19, 1994 Publication Date: January 1995 Chapter Title: Corporate Taxes and the Cost of Capital for U.S. Multinationals Chapter Author: Joosung Jun, James R. Hines Jr., R. Glenn Hubbard Chapter URL: http://www.nber.org/chapters/c7724 Chapter pages in book: (p. 21 - 28) 3 Corporate Taxes and the Cost of Capital for U.S. Multinationals Joosung Jun 3.1 Introduction Tax rules affect the ability of U.S. firms to compete in foreign markets with local and other foreign firms. The primary channel through which taxes exert this influence is by changing the cost of capital. The competitive ability of firms that face different costs of capital depends on how capital intensive they are and how sensitive the demand for their product is to the price. This paper does not attempt to look at specific products, but does estimate how tax rules alter the cost of capital for U.S. firms and competing firms in a variety of foreign markets. Past comparative studies of the cost of capital have been mostly concerned with domestic investment between countries. A typical finding of these studies is that, during the past decade...
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...available to be purchased. Exports are the merchandise and ventures that leave a nation available to be purchased in another nation. The result of transactions between at least two independent countries that direct the terms of the worthy trade of merchandise and enterprises between the companies or country is called Trade Agreement. Canada and Mexico have develop their relationship as to be a vital key accomplices that offer progressing exchange and engagement. Their synergistic effort are sought after through an assortment of means, extending from intermittent abnormal state...
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