Premium Essay

Business Tax, Ali Case Study

In: Business and Management

Submitted By tomyyte
Words 2744
Pages 11
SUBJECT: Business Tax, Outcome 1, Ali Case study.

Income Tax Legislation.

Income tax legislation can be found in the Income Tax (Earnings and Pensions) Act 2003, the Income Tax (Trading and Other Income) Act 2005 and the Income Tax Act 2007.

Taxable supplies.

A good understanding of the principles of VAT is very important in advising business.
The third largest source of government revenues is value added tax (VAT), charged at 20% on supplies of goods and services. It is therefore a tax on consumer expenditure.
Certain goods and services are exempt from VAT, and others are subject to VAT at a lower rate of 5% (the reduced rate, such as domestic gas supplies) or 0% ("zero-rated", such as most food and children's clothing). Exemptions are intended to relieve the tax burden on essentials while placing the full tax on luxuries, but disputes based on fine distinctions arise, such as the notorious "Jaffa Cake Case" which hinged on whether Jaffa Cakes were classed as (zero-rated) cakes—as was eventually decided—or (fully taxed) chocolate-covered biscuits.

Five things to remember about exempt supplies:
• You don’t include VAT in the price of exempt goods or services;
• You are not eligible to claim input tax credits in acquiring exempt supplies;
• You don’t include the value of the exempt supplies in your taxable turnover when establishing your VAT registration threshold;
• If you only supply exempt goods or services, you cannot register for VAT purposes;
• You must make the relevant VAT adjustments if your business is engaged in both taxable and exempt supplies.

Zero rating is a rate of VAT, (0%), i.e. it constitutes a taxable supply. This in turn renders any supplier of zero-rated goods, services liable to register for VAT. The advantage of VAT registration is that VAT can be reclaimed on costs. If taxable turnover exceeds the VAT threshold they

Similar Documents

Free Essay

Black Money

...Indian Black Money Abroad In Secret Banks and Tax Havens Second Report Of The Task Force on the steps to be taken by India Members Shri Gurumurthy, Chartered Accountant, Chennai Shri Ajit Doval, former Director Intelligence Bureau, Delhi Prof R.Vaidyanathan, Professor of Finance Indian Institute of Management, Bangalore Shri Mahesh Jethmalani, Senior Advocate, Mumbai Submitted to BHARATIYA JANATA PARTY 1 I. The First Interim Report The first Interim Report of the Task Force appointed by the Bharatiya Janata Party was released to the public on 17-04-2009. Afterward different world governments, particularly those in the West, have increasingly begun targeting tax havens and intensely began pursuing black money. The US, and France particularly began a huge campaign against the evil of black money. The estimates black money lodged in tax havens by global financial institutions like the International Monetary Fund reached as high as $18 trillion. The instability in the global financial order itself was traced to the evil money. So the issue has now acquired a totally different dimension. In the first Interim Report, the Task Force had suggested broad national and global strategy for dealing with the menace of black money out of the country. The substance of the recommendations of the Task Force in the First Interim Report is summarized here: Global Strategy: • Creating a powerful public opinion and broad national consensus on the issue. Those who do not...

Words: 25854 - Pages: 104

Premium Essay

Proposal

...working itself up from the predominantly mining and agricultural based economy towards a more multi-sector economy. To achieve a faster economic growth, Malaysia has accepted an unparalleled opportunities for developing this country through globalization (Athukorala, 2003). An offer of combination of locational advantages by the government is a factor that foreign investors got tempted with (Farhad, Alberto, & Ali, 1999), to invest in Malaysia. Foreign investors has been encouraged by the Government to invests in Malaysia in which has the advantage of having a well-developed infrastructure, industrious workforce, as well as politically stable nation with a good legal system with the additional attractiveness of incentives for the foreign investors. In other words, foreign investors are attracted to invest in Malaysia because of the lower cost of production (Wong, 2005). FDI is a medium for acquiring skills, technology, organizational and managerial practices and access to market, besides being the source of finance and employment (Farhad, Alberto, & Ali, 1999). There are a lists of exports by host countries that are being promoted by FDI and a few of them are; (a) domestic capital for exports expansion, (b) assist in the transfer of technology and new products for exports, (c) promoting access to new and large foreign markets, and (d) providing training for the local workforce and upgrading technical and management skills. However, when there is an advantage, comes...

Words: 2156 - Pages: 9

Premium Essay

Tax Assessement

...Introduction Executive Summary: Tax is the main source of government revenue. Every country has a good taxation policy. Like this Bangladesh has also a Tax policy or act. There is an Income Tax Ordinance which is Published in the Bangladesh Gazette, Extraordinary, dated the 4th June, 1984. As a student of Business Administration I need to learn about the tax system of the country. For the purpose of gathering ideas on taxation and fulfillment of course requirement I have prepared this report. I think it will helpful to know the taxation policy. This report made on especially individual tax assessment (Income Tax). Keywords: Income Tax Ordinance, 1984; Tax, Income, Income year, Assessee, Assessment year, Salary, Heads of Income, Section 2(1), Section 33, Section 20, Other sources, Income from Agriculture. Objectives of the Study: Every assignment must have a clear and certain objective. The objective of this assignment is to gather ideas about individual tax assessment. Beside this there are some other objectives behind this report. These are cited below. * To know about the tax and taxation policy. * To identify individual’s tax liabilities * To know the policy regarding tax implication and tax exemption. * To know how tax is calculated and what rate is applicable on specific items. Methodology of the study: This report has been written on the basis of secondary data by Francis Mondol, a student of BBA, Faculty of Business Administration and Management,...

Words: 2599 - Pages: 11

Free Essay

Strategic Management of Business Policy Formulation and Implementation Between Bangladesh and India

...Strategic Management of Business Policy Formulation and Implementation between Bangladesh and India Course Title: Strategic Management Course Code: MBA 512 Prepared for Prof: Muhammad Mahboob Ali, Ph.D. Visiting Professor of IUB Prepared by Mostafizur Rahman 1221544 Shamsher Ali 113060 Abstract The business relationship between India and Bangladesh is currently of special interest in both countries for a number of reasons. Firstly, there are urgent and longstanding concerns in Bangladesh arising from the perennial, large bilateral trade deficit with India, and from the large volumes of informal imports from India across the land border which avoid Bangladesh import duties. These concerns have been particularly acute on the Bangladesh side in the context of discussions between the two governments of the possibility of a bilateral free trade agreement along the lines of the India-Sri Lanka FTA. Secondly, even though (because of the disparity in the size of the two economies) India’s trading relationship with Bangladesh is much less significant for it than it is for Bangladesh, closer economic integration with Bangladesh is nevertheless seen as a very important way of reducing the economic and political isolation of the seven Indian eastern and north eastern states from the rest of the country. Finally, both countries have long shared common objectives for closer economic integration...

Words: 3493 - Pages: 14

Premium Essay

Kingfisher and Air Deccan Article

...REASON BEHIND KINGFISHER AIRLINE’S FAILURE: “AN EYE OPENING CASE STUDY REVEALING THREE KEY WORDS FOR AVIATION INDUSTRY SUCCESS: COSTS, COSTS, COSTS” * JAYANT SRIVASTAVA (Asst. Professor, Trinity Business School, Murad Nagar, Ghaziabad) ** ASAD ALI & AKANSHA TIWARI (Students PGDM, Trinity Business School) ABSTRACT: Our research paper try to throw lights on some major reasons which were somehow responsible for the current crisis going inside the kingfisher Airlines which can be realized by the press statement from KFA, on 12 March 2012, highlights the challenges: “The flight loads have reduced because of our limited distribution ability caused by IATA suspension. We are therefore combining some of our flights. Also, some of the flights are being cancelled as a result of employee agitation on account of delayed salaries. This situation has arisen as a consequence of our bank accounts having been frozen by the tax authorities. We are making all possible efforts to remedy this temporary situation.” RESEARCH OBJECTIVE: The key objective of this research study is to investigate the reasons behind the failure of the Kingfisher airline in the year 2012. To investigate the government policies and the various steps taken to fix the current crisis. To investigate the reasons due to which the whole Aviation Industry is suffering from higher operating losses. What went so terribly wrong with Kingfisher when rival Jet Airways has comparatively much higher debt? INTRODUCTION: ...

Words: 1222 - Pages: 5

Free Essay

Bubble Tea

...Royal Holloway, University of London School of Management THE MANAGEMENT OF EXPATRIATES WITHIN EUROPEAN AND MIDDLE EASTERN AIRLINES By: September 2010   Supervisor: Dr. Yu Zheng       This dissertation is submitted as part of the requirement for the award of the Master’s degree MSc in International Human Resource Management      THE MANAGEMENT OF EXPATRIATES WITHIN EUROPEAN AND MIDDLE EASTERN AIRLINES      Acknowledgements In the name of God, most gracious, most merciful. I would like to take this as an opportunity, to owe my deepest gratitude to all who have made this dissertation possible. Firstly, I am heartily thankful to my supervisor Dr.Yu Zheng for her unlimited advice, guidance and support throughout this journey. Secondly, a big Thank you to my lovely family, for their encouragement, and constant support. Thirdly, a great appreciation should not be forgotten, to my friends who have helped me during this challenging year.   2  THE MANAGEMENT OF EXPATRIATES WITHIN EUROPEAN AND MIDDLE EASTERN AIRLINES      Executive Summary This research endeavours to investigate the management of international assignments in a European and a Middle Eastern airline. In-depth qualitative interviews are conducted to get a clearer picture of the motives behind sending out expatriates, the selection procedures and training programs of each airline. Also to find out the role HR department plays towards the preparation of expatriates and their adjustment...

Words: 32338 - Pages: 130

Premium Essay

King Fisher

...REASON BEHIND KINGFISHER AIRLINE’S FAILURE: “AN EYE OPENING CASE STUDY REVEALING THREE KEY WORDS FOR AVIATION INDUSTRY SUCCESS: COSTS, COSTS, COSTS” * JAYANT SRIVASTAVA (Asst. Professor, Trinity Business School, Murad Nagar, Ghaziabad) ** ASAD ALI & AKANSHA TIWARI (Students PGDM, Trinity Business School) ABSTRACT: Our research paper try to throw lights on some major reasons which were somehow responsible for the current crisis going inside the kingfisher Airlines which can be realized by the press statement from KFA, on 12 March 2012, highlights the challenges: “The flight loads have reduced because of our limited distribution ability caused by IATA suspension. We are therefore combining some of our flights. Also, some of the flights are being cancelled as a result of employee agitation on account of delayed salaries. This situation has arisen as a consequence of our bank accounts having been frozen by the tax authorities. We are making all possible efforts to remedy this temporary situation.” RESEARCH OBJECTIVE: The key objective of this research study is to investigate the reasons behind the failure of the Kingfisher airline in the year 2012. To investigate the government policies and the various steps taken to fix the current crisis. To investigate the reasons due to which the whole Aviation Industry is suffering from higher operating losses. What went so terribly wrong with Kingfisher when rival Jet Airways has comparatively much higher debt? INTRODUCTION: Global...

Words: 1222 - Pages: 5

Premium Essay

Business Plan

...2015 Adil Amin Muhammad Tariq Shaban Tayyab Furqan Fundamentals of Corporate Finance 3/8/2015 2015 Adil Amin Muhammad Tariq Shaban Tayyab Furqan Fundamentals of Corporate Finance 3/8/2015 Auto Doctor Auto Doctor ___________________________________________________________________________________________________ PROJECT _____________________________________________ Submitted to: Prof. Syed Sadir Ali Zaidi Submitted by: * Adil Amin (2013-MBA-015) * Tayyab Furqan (2013-MBA-028) * Muhammad Tariq Shaban (2013-MBA-022) Course Title: Fundamental of Corporate Finance TABLE OF CONTENTS ACKNOWLEDGEMENT 3 EXECUTIVE SUMMARY 4 Vision Statement: 4 Mission Statement: 4 PROJECT PROFILE 5 HUMAN RESOURCE REQUIREMENT: 8 Office Equipment & Other Equipment Requirement: 9 Revenue Generation: 9 REVENUE: 10 FIXED COST CALCULATION: 10 Performa Income Statements 11 6th Tools 12 SENERIO ANALYSIS 15 Income Statements for Worst case by 10% decrease 17 Income Statement for Best Case by Increasing 10% 18 Sensitivity Analysis 19 Break Even Analysis 21 ACKNOWLEDGEMENT To commence with things we would like to take this opportunity to gratefully thank the Almighty ALLAH for keeping us in good health all through our project work. I am using this opportunity to express my gratitude to everyone who supported me throughout the course of this THIS project. I am thankful for their aspiring guidance, invaluably constructive...

Words: 2687 - Pages: 11

Premium Essay

Trends and Calendar Effects in Malaysia Stock Market

...Khalid Almsafir Nur Hanis Hazwani Binti Husni Ayman Abdalmajeed Ahmad Al-smadi Graduate Business School, College Of Graduate Studies, Universiti Tenaga Nasional, Jalan IKRAM-UNITEN, 43000 Kajang, Selangor, Malaysia. mahmoud@uniten.edu.my, hanis.husni@gmail.com, smadi370@yahoo.com ABSTRACT Investing can help a person's wealth to generate more, and investing in stock is proven as one of the most profitable forms of available investment. The benefits gained in stock broking are immediate Buy/Sell which investor can sell part of their investment any time and at low transaction cost. However, investing in stock will require investor to observe the market, as market can be a volatile place and investor need to acquire knowledge of what they actually are doing. This study will discuss the price trends over the year, and how it will get affected by the seasonality in Malaysia, which also known as the calendar effects. The factor to be investigated in this study is the price on holiday’s season, the January effect or any other monthly seasonality. The daily price of KPJ Healthcare Berhad for the year 2011 is the sample was chosen in this study. Further this study, data used is derived from the weak-form efficient markets hypothesis, which is the price history and case study. Regression method is used in this study in order to help achieving the findings. This should be a continuous study, and adding on more other factors, such as wars and economic crises, and traders, investors...

Words: 4125 - Pages: 17

Premium Essay

Accounting

...REVIEW       QC1. FIELD of RESEARCH (FoR) PANEL to which this request is directed (tick one box only):  0806 Information Systems  1401-1499 Economics  1501 Accounting  1502 Finance  1503 Management  1504-07 Marketing/Tourism/Logistics  180105/1801025 Business and Taxation Law   QC2. WHAT ABDC 2013 RATING DO YOU PROPOSE FOR THIS JOURNAL?  A*  A B C   QC3. WHAT ABDC 2010 RATING WAS THIS JOURNAL ASSIGNED?  A*  A B C   QC4. WHAT ERA 2010 RATING WAS THIS JOURNAL ASSIGNED?  A*  A B C  not applicable   QC5. NOMINATE “THE BEST” COMPARATOR JOURNAL (journal from the ABDC 2010 list that is most similar in research quality): ASIAN REVIEW OF ACCOUNTING   QC6. JOURNAL INFORMATION Editor’s Name: PROF. DR NORMAH OMAR Web Address: http://ari.uitm.edu.my/mar.html Institution: UNIVERSITI TEKNOLOGI MARA     NATURE OF SUBMISSION   QC7. Primary submitter type (tick one box only)  Higher Education Institutional Submission (e.g. formal submission from Business Faculty/School)  Peak Body Submission (e.g. AFAANZ, ANZAM)  Individual Submission   QC8. Primary submitter: PROF. DR SARDAR M. N. ISLAM Institutional Affiliation: Professor of Business, Economics and Finance; College fo Business, Victoria University, Australia   QC9. Are there other signatories to this submission?  Yes  No If yes, how many signatories are there...

Words: 3679 - Pages: 15

Free Essay

Expansion

...& Diversification Presented by Case Background Carlsberg Incorporated in 1969. Came to Malaysia after two years incorporated through brewing Carlsberg Green Label beer for Malaysian Market. Carlsberg Brewery Malaysia Bhd (Carlsberg) market leading company that hold 50% shares of beer and stout market. Owned by the Carlsberg Group of Denmark. Cont... Carlsberg Malaysia Sdn. Bhd. one of the subsidiary that wholly owned become main marketed locally product. Carlsberg enter into many investment and acquisition through all the years. Competitor in the same industry Guinness Anchor Bhd. Case Background ABC Consulting Sdn Bhd Consist of David as one of the consultant and Robert Stanley as a Head of the company. Specialised in business turnaround. Mr. Stanley suggested that the company to focus more on cash-rich company that want to expand, diversify or venture. David grab the opportunity by looking beer and stout company and found that Carlsberg Company as a target. Cont... By looking through Carlsberg position, David feels that expanding is not worth it and cannot able to sustained their profit. He prepared himself with information before approaching Calrsberg company regarding the diversification activities. Also take and opportunity by selling his idea of manucfacturing sparkle grape juice (halal product) once the Carlsberg company tend to choose to diverse by taking Guinness as an example. ABANG MUHAMAD ZAIM BIN ABANG ALI (AC085005) AMIRUL BIN ANWAR (AC085019) ...

Words: 981 - Pages: 4

Premium Essay

Dfdfewfw

...AUL_KASLIK – MBA Helen Deresky International Management CHAPTERS 6,7,8,9,10& 11 Ali Sulaiman 71859876 aassbk@gmail.com AUL_KASLIK – MBA Helen Deresky International Management Formulating Strategy ng Outline Opening Profile: Global Companies Take Advantage Global Integrative Strategies Using E-Business for global Expansion E-Global or E-Local Entry Strategy Alternatives Reactive Responses Exporting; Licensing; Franchising; Contract Manufacturing; Of/shoring; Service Sector Outsourcing; Turnkey Operations; Management Contracts; International Joint Ventures; Fully-Owned Subsidiaries; e-Business Proactive Reasons Management Focus: Mexico's Cemex Reverses Course to Comparative Management in Focus: Strategic Planning for the EU Market Strategic Choice of Opportunities in South Africa Reasons for Going International Respond to Global Downturn Strategic Formulation Process Steps in Developing International and Global Strategies Mission and Objectives Environmental Assessment Institutional Effects on International Competition Sources of Environmental Information Internal Analysis Competitive Analysis Strategic Decision-Making Models Global and International Strategic Alternatives Approaches to World Markets Global Strategy Regionalization/localization Ali Sulaiman 71859876 aassbk@gmail.com Timing Entry and Scheduling Expansions The Influence of Culture on Strategic Choices Conclusion Summary of Key Points Discussion...

Words: 25592 - Pages: 103

Premium Essay

Analysis of Financial Management

...1 ANNUAL REPORT 2014 Table of contents ABOUT THE COMPANY Letter of Transmittal Corporate Information Milestones Board of Directors and Management Brand Values Products 3 4 5 6 -8 9 10 OPERATING RESULTS Summary of Key Operating & Financial Data 11-12 AGM & COMPANY PERFORMANCE Notice of 35th Annual General Meeting Chairman’s Message to Shareholders Report of the Board of Directors 13 14 ANNUAL REPORT 2014 15 - 19 1 Table of contents COMPLIANCE REPORT Corporate Governance Compliance Report 20 - 38 FINANCIAL RESULTS Auditors’ Report to the Shareholders Statement of Financial Position Statement of Comprehensive Income Statement of Changes in Shareholders’ Equity Statement of Cash Flows Notes to the Financial Statements Unit-wise Working Result Schedule of Non- Current Assets Certificate on Review of financial statements PROXY FORM 39 - 40 41 - 42 43 - 44 45 46 - 47 48 - 80 81 - 82 83 - 84 85 ANNUAL REPORT 2014 2 Letter of Transmittal December 6, 2014 Esteemed Shareholders Bangladesh Securities and Exchange Commission Dhaka Stock Exchange Limited Chittagong Stock Exchange Limited Registrar of Joint Stock Companies and Firms Dear Sir or Madam, Subject: Annual Report for the year ended June 30, 2014 It is our pleasure to inform you that the 35th Annual General Meeting of Olympic Industries Limited will be held on Wednesday, December 24, 2014 at 10:00 AM at our 2nd biscuit factory premises at Lolati, P.S. Sonargaon, District...

Words: 25973 - Pages: 104

Premium Essay

Delta Airlines

...TUNKU PUTERI INTAN SAFINAZ SCHOOL OF ACCOUNTANCY COLLEGE OF BUSINESS BKAL 3063 INTEGRATED CASE STUDY SECOND SEMESTER FEBRUARY 2015/2016 (A152) GROUP: B (5) WRITTEN REPORT CASE ANALYSIS CASE : Depreciation at Delta Air Lines: The “Fresh Start” PREPARED FOR: PROF. DR. MOHAMAD ALI B ABDUL HAMID PREPARED BY: NAME | MATRIC NO | AHMAD SHABIRIN BIN BAHRIN | 221521 | YELMI MARIANI BINTI ZULKIFLI | 221792 | LEONG SIAO ZHUEN | 230190 | NIWASHINI A/P SUBRAMANIAM | 230293 | ANG HUI QIN | 230294 | EXECUTIVE SUMMARY Delta Airline began 2008 with more worldwide destination of 321 destinations in 58 countries. In 2008 merged with Northwest Airlines, become the largest airline in the world. In May 1st 2007, Delta adopted policies regarding estimated lives & residual values for aircraft, but its was far from the 1st time it had changed its estimates. PPE (flight, ground property) are often more than half of the total asset. Depreciation of those asset is a major operating expenses and is not an attempt to measure the current value of assets. The amount of depreciation estimated by an airline company for each operating period is based in the cost of asset, estimates of asset lives, and assumptions about residual values at the end of the asset lives. These estimates & assumptions have changed through the years for almost all airlines. Depreciation practices had been change several time. CAUSE AND STATEMTN OF PROBLEM Delta, has changed...

Words: 944 - Pages: 4

Premium Essay

Title

...life for us, and also we thank them for pushing us to success. For all of Those, Who are inspiring us and see us on our way. II II Acknowledgement Acknowledgement In the beginning, we thank Allah for giving us the strength and health to let this work see the light and our parents for their help and support. Our Prophet Mohammed said: “Who doesn’t thank people he doesn’t thank Allah”. We want to thank everyone help and participated in making this study starting from our honorable: Mr. Salah Shubair. Who put a lot of faith in our capabilities and encouraged us to complete this study. We thank all of our teachers in the faculty of commerce and our colleagues and friends for their support . III Abstract Abstract The study aims to discuss and evaluate one of the accounting problems, which is choosing proper method for inventory evaluation, that play an important role in the evaluation of businesses financial position and net income. There are many factors affecting the business decision while choosing any of these methods which...

Words: 11924 - Pages: 48