...usefulness to the decision making of corporate taxpayers, and how the temporary changes in recent years affect cash flow of businesses. Under Section 168(k) of IRC, bonus depreciation is a special depreciation allowance to deduct income tax of corporate taxpayers. Though this ranges from 30% to 100% as determined by annual election of congress, bonus depreciation actually results in substantial present value tax savings for businesses when they purchase new qualified property. The introduction section is an overview of bonus depreciation, how it is relevant to businesses, and why taxpayers care about it. The legislation history is a brief description of temporary changes and the timeline of bonus depreciation. The fictional example section presents the possible effects of bonus depreciation transitioning from 50% in 2014 to 0% in 2015, and the conclusion section summarizes this research. Keywords: Depreciation Deduction, Bonus Depreciation, Cash Savings INTRODUCTION Outline the topic. Bonus depreciation is special depreciation allowance that allows businesses an additional first-year depreciation deduction when the qualifying asset is first purchased. It helps business recover the costs of qualified new property made in a particular year faster than the ordinary depreciation schedule allow. Bonus depreciation is eligible to new qualified property, but it is not eligible for property used outside of the US, tax-exempt use property, or tax-exempt financed property. Besides,...
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...9-295-100 Rev. August 7, 1997 Cross-Border Valuation Cross-border investment has assumed a prominent place among the key decisions facing investors and corporate managers. In today’s increasingly global marketplace, many investment projects, corporate acquisitions and mergers have important international components. The importance of cross-border valuation methods have been underscored by trends toward the relaxation of capital controls, European economic integration, and, since the early 1990s, the opening and growth of Eastern European, Russian, Asian and Latin American markets. Cross-border acquisitions have been a particularly prevalent form of investment since 1980. American corporations, for example, increased their acquisitions of foreign targets by 160% between 1980 and 1990. Acquisitions of American targets by foreign companies rose about 50% during the same period. Some transactions, such as Matsushita Electric's $6.9 billion acquisition of MCA, Inc. in 1991, have been quite large. The majority, however, have been well under $100 million in size, suggesting that these transactions are not just the domain of giant multinationals. Evaluating crossborder opportunities is a critical consideration of executives and investors from around the world. The objective of this note is to review basic methods of valuing cross-border investments and the main issues affecting such valuations. It is intended to be a source of guidance, not a comprehensive review of...
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...9 4. 4.1 4.2 4.3 5 5.1 5.2 5.3 6 6.1 6.2 6.3 7 7.1 7.2 7.3 A Brief Survey Geography Population and Languages Political System The Economy Swiss Company Law Governing Law and Forms of Business Enterprises Corporation Books of Account Annual Business Report Taxation of Resident Corporations Liability to Swiss Tax Determination of Taxable Income Tax Privileged Corporations Treaty Benefits for Swiss Resident Corporations Computation of Corporate Taxes Assessment of Corporate Taxes Withholding Taxes of Dividend Distributions of Swiss Corporations Filing of Tax Returns, Assessments of Tax, Tax Litigation Corporate Reorganizations Taxation of Non-Resident Corporations Liability to Swiss Tax Determination of Taxable Income and Capital of Swiss Permanent Establishments Remittance of Profits Withholding Tax Income Subject to Withholding Tax Exemptions from Withholding Tax Withholding and Reimbursement of Tax Indirect Taxes Value Added Tax Stamp Duties Real Estate Taxes Personal Taxation Income Taxes on Residents Income Taxes on Non-residents Other Individual Taxes Seite 2 7.4 8 8.1 8.2 8.3 9 9.1 9.2 10 10.1 10.2 10.3 10.4 10.5 10.6 Tax Returns, Assessment and Payment of Tax Labour Conditions an Social Security Working Conditions Social Security Social Security Treaties Government Incentives Export Risk Guarantee Program Investment Incentives Government Controls Import and Export Controls Restrictions on Investment Acquisition of Swiss Real Property Anti-Trust Legislation Price...
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...Public Finance Law, 1947 (Law No. 34, Apr. 31, 1947), which has been amended time to time. This report gives an insights of the Japan’s public finance in general begins with a historic overview. A special emphasis is given to the tax system in Japan for financing the public expenditures. Finally, this report makes a comparative analysis of Japan’s public finance with that of Bangladesh. A. Historical Overview of Japan’s Public Finance Until the mid of 1960s, Japanese Government followed a balanced budget policy. Because of revenue shortfall, in 1965 the government started to issue bonds (mainly construction bonds) to finance the gap. The oil crisis in 1973 stagnated the tax revenue and pushed the government to amend the Public Finance Law to permit the issuance of special deficit-financing bonds in FY 1975. The government had to pass this special law for each year for deficit financing until FY 1989. During the 1970s, almost one-third of total expenditure was financed by issuing of public bonds. However, this ratio has been declined to 9.5% due fiscal consolidation and economic bubble in 1980s. Alongwith the collapse of bubble economy in 1990s, the great Hanshin - Awaji Earthquake in 1994 pushed back the government to have stimulus packages by tax cut and issuing special deficit financing bonds again. In 1997, the Japanese economy experienced unanticipated adversities from both domestic sides (bankruptcy of some financial institutions) and international sides (Asian...
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...Flat Tax Rate Eliminates Complicated System The first quarter of each year marks a period of turmoil and angst for many Americans as they race to complete the complicated forms of the current years’ federal income tax return. With more than 66,000 pages and 893 forms to choose from, the current Internal Revenue Service Code screams difficulty (Mitchell, 2005). Most politicians agree that changes are necessary; however there remains to be a major debate of ways to accomplish changes without stressing the economy. The department of treasury has compiled extensive research that has resulted in various options on various ways to reform our current system (Mitchell, 2005). A flat tax rate on income could be a solution to this issue and many have invested time in devising feasible plans. There are pros and cons to everything, but I believe the benefits would far outweigh the faults in light of our countries current economic situation. A flat tax, taxing everyone at the same rate, with basic deductions as well as no income tax burden for persons or families who make less than a specified amount during the year, would be fair. Most people feel the current system is unfair with its double taxation and varying tax brackets ranging anywhere from 10% to 33% of the adjusted gross income (“Congressional Budget Office”). The proposed 15% or 17% flat rate for all American would benefit everyone, considering in 2007 the overall average federal tax rate was 20.4 percent (“Congressional...
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...[Abstract] agricultural tax system reform of China's basic objectives are: to establish a market economy can meet the requirements are conducive to the Economic integration of urban and rural areas will help to support agriCulture and the world to protect and facilitate the integration of the tax system. Around this goal, the agricultural tax system reform, the basic points should be highlighted the following aspects: 1. Abolish agricultural taxes taxes, the tax burden on farmers into the main tax system. Lower taxes, reduce the tax burden on farmers. Can be considered in bringing agricultural products into value-added tax system, tax, agricultural value-added tax should be set at 10%. In other taxes, there are also all the necessary tax concessions given to the farmers. 3. The agricultural tax in the form of money from a material change. China's current agricultural tax system is the formation of the initial founding of New China, and its impact on national control grain resources, stability, economic relations between urban and rural areas, increasing the state's financial revenues and ensure the supply of agricultural products and so the city has played an active role. However, with the economic Development caused by changes in socio-economic relations, especially in the establishment of a socialist market economy, the overall institutional arrangements and accession to the World Trade Organization trend, the current agricultural tax system is not adaptive and even disadvantages...
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...9-11, 2008, Ithaca Legal Myth on Emergence of Social Enterprises in China By JIN Jinping∗∗ Abstract Is social enterprise a new form of organization, differ from for-profit ones and not-for-profit ones? The article tries to answer this question. The social enterprises seem blur the boundary between for-profit and not-for-profit in the objects, while they don’t break though the distinction between for-profit organization and not-for-profit organization, and the rules applied respectively. However the social enterprises can enjoy some special treatment, not base on the form of organization, but on the social benefit of their mission. We should deal with social enterprises and pure business enterprises differently, and shouldn’t ask the later to offer what they needn’t. Key words: Social Enterprises; Corporate Social Responsibility; Community Interest Company; the Triple Bottom Line PartⅠ. Introduction While “corporate social responsibility” is broadly concerned by the public, a new term “Social Enterprise” has been introduced and is gaining its popularity. There are quite a few incubators for social enterprises in practice, and some foundations have put ∗∗ Jin Jinping, Lecture in Peking University Law School. Email: jinjinping@yahoo.com.cn. 1 social enterprises at their priority list of their grantee.1 The term “Social Enterprise” is first used in a report of Organization for European Economic Co-operation,(OEEC) in 1994, indicating the organization...
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...the institute of cost accountants of india(ICAI) (A Statutory body under an act of parliament) SYLLABUS 2012 STRUCTURE & contents Evaluation Synthesis ANALYSIS ANALYSIS APPLICATION APPLICATION COMPREHENSION COMPREHENSION COMPREHENSION KNOWLEDGE KNOWLEDGE KNOWLEDGE LEVEL A LEVEL B LEVEL C FOUNDATION COURSE - Syllabus 2012 the institute of cost accountants of india(ICAI) (A Statutory body under an act of parliament) SYLLABUS 2012 STRUCTURE & contents The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 1 FOUNDATION COURSE - Syllabus 2012 The Following table lists the learning objectives and the verbs that appear in the syllabus learning aims and examination question. Learning objectives Level A COMPREHENSION What you are expected to understand List Make a list of. State Express, fully or clearly , the details/ facts of. Define Give the exact meaning of. Communicate the key features of. Distinguish Highlight the differences between. Explain Make clear or intangible/state the meaning or purpose of. Identify Recognise, establish or select after consideration. Illustrate What you are expected to know Definition Describe KNOWLEDGE Verbs used Use an example to describe or explain something. The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) ...
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...NEW TAX INCENTIVE FOR LONG-TERM EQUITY INVESTMENTS There has been a great deal of public discussion about the increased individual and corporate income tax rates and general harsh treatment of upper income taxpayers under the Omnibus Budget Reconciliation Act of 1993. However. there has been scant attention to what may, in fact, prove to be a silver lining in that tax cloud - the newly authorized capital gains exclusion for the stock of certain companies. Under the Act. non-corporate holders of stock in "qualified small businesses" can escape tax on up to one-half of any gain from the sale of that stock which they have held for at least five years. 1. Qualified Small Businesses The new tax benefit is only available if the issuing corporation ("Issuer") is a qualified small business on the date of the stock issuance and during "substantially" all of the period that an investor holds its stock. In order to qualify as a small business. an Issuer must satisfy the following requirements: A. Non-Qualifying Corporations: The corporation cannot be an S corporation; a domestic international sales corporation that has made an IRC section 936 election: a regulated investment company: a real estate investment trust. a real estate mortgage investment conduit or a cooperative. B. Conduct of Active Business: It must use at least 80% (by value) of its assets (including intangible assets) in the actual conduct of a "qualified trade or business...
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...However in a world of global economic competition, merely creating additional demand for goods and services does not necessarily translate into job creation in a specific venue. Increasing demand must also translate into increased capital formation, job creation and productivity in the same country or economic venue. This supply-capital formation component is missing in the attempts at economic stimulus in the United States and in many western European countries. In a competitive global economy with increased capital fluidity, capital tends to flow to venues (countries) that offer the highest risk-adjusted returns. Thus, countries around the world are competing for capital and resulting job creation in a world with heterogeneous tax structures, standards of living, levels of infrastructure development and human and natural resources. The ability to attract capital depends on these factors as well as possibly other factors, where it is not readily transparent which countries posses advantages in attracting capital. However, it is obvious that capital formation necessary for job creation depends heavily on new investment and that the supply side of economics cannot be ignored. With respect to recent demand side stimulus attempts, the US is increasing the demand for many foreign made products and creating jobs in China and other countries. We need to focus on production,...
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...I work for Dan Caputo Jr., CPA in Wilmington, Delaware. It is a small family owned accounting, auditing, and tax firm. Our primary focus is individual and corporate tax returns. This company started with only a few clients out of the home of Dan Caputo Sr., and eventually grew into an office building with several employees and hundreds of clients. There are many duties and responsibilities assigned to me; most of them are the same as before. The preparation and completion of individual tax returns, corporations, partnerships, and sole proprietorships are expected to be finished in a timely manner. These are the primary means of income for this company, but I also prepare estate and trust returns when needed. Other duties and responsibilities assigned to me include the preparation and reconciliation of financial statements. I am responsible for creating and generating the general ledger, balance sheet, profit and loss, and payroll for all companies I work on. All of these financial statements have to be completed correctly and on time. I’m also in charge of the office filing system and reports. During the duration of my internship I had several special projects assigned to me. Since it is now tax season there is a lot of work to be done, it is our busiest time of the year. Instead of completing corporate returns like I normally do, I worked mostly on individual returns. There are several hundred individual returns to be completed so most of my efforts were directed...
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...having only one owner. A few types of businesses generally cannot be LLCs, such as banks and insurance companies. Check your state’s requirements and the federal tax regulations for further information. There are special rules for foreign LLCs. A few types of businesses generally cannot be LLCs, such as banks and insurance companies. Check your state’s requirements and the federal tax regulations for further information. There are special rules for foreign LLCs. Classifications Depending on elections made by the LLC and the number of members, the IRS will treat an LLC as either a corporation, partnership, or as part of the LLC’s owner’s tax return (a “disregarded entity”). Specifically, a domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless it files Form 8832 and affirmatively elects to be treated as a corporation. And an LLC with only one member is treated as an entity disregarded as separate from its owner for income tax purposes (but as a separate entity for purposes of employment tax and certain excise taxes), unless it files Form 8832 and affirmatively elects to be treated as a corporation. Depending on elections made by the LLC and the number of members, the IRS will treat an LLC as either a corporation, partnership, or as part of the LLC’s owner’s tax return (a “disregarded entity”). Specifically, a domestic LLC...
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...particular model would best be utilized. Sole Proprietorship In simple terms, sole proprietorship refers to a business that is run by a single person. The sole proprietor enjoys all the profits as well as bears all the risks of the business (everymanbusiness, 2011). Pros Being one of the simplest of all business models, a sole proprietorship can be set up with very little effort. There is no special paperwork or extra fees involved in creating a sole proprietorship. In some states it is required to register the business, however, in other states it is not. The owner has the right to make all management decisions concerning the business, including hiring and firing employees (Cheesmen, 2011). Maintaining a sole proprietorship is much simpler than any other business model. Taxes are simplified with sole proprietorship as the business, and individual are considered as a single entity. The only tax that needs to be paid pay is the self-employment tax (everymanbusiness, 2011). Income tax details are reported on the owner’s regular personal income tax form. No additional or separate form is involved. Cons The major drawback to a sole proprietorship is that the owner is liable for all contracts and torts of the business. If a lawsuit is filed...
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...Sole Proprietorship * Liability – Sole Proprietorship offers unlimited liability which states that you as the owner are solely responsible for all debts from your personal assets. You can lose not only the money initially invested in the business but also personal assets. * Income Taxes – Due to you being the sole owner there is no separate business income tax filing for a business under Sole Proprietorship. Business income or loss is reported on the sole proprietor’s personal tax return, and any tax is paid at the individual level. * Longevity / Continuity - The Sole Proprietor is the sole owner, with no partners in the business, if the Sole Proprietor becomes disabled, retires or dies the business is dissolved. A business operated under Sole Proprietorship does not offer the perpetual existence of a corporation. * Control – Control of a business that is under sole proprietorship falls under the sole owner. Under a Sole Proprietorship you are not permitted to bring in any business partners, if you do then this would become a General Partnership Business. * Profit Retention – All profits gained under Sole Proprietorship belong to you the owner. However, you are also responsible for any bills incurred prior to any profit being taken. * Location - Expanding or moving a business that is under “Sole Proprietorship” is not very complicated. To move, you register your name or the business’ name to the state you are moving to. The only rule for a business...
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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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