...Income Tax 1. A General Overview of the Income Tax 2. Coverage Scope of the Income Tax 3. Deductions Allowed for Taxation Purposes Part 1. A General Overview of the Income Tax In the RM the unitary income tax was introduced on 1.01.98 and replaced three taxes: the profit tax of enterprises, the individual income tax, and the profit tax of banks and other crediting institutions. In most countries of the world individual and corporate income tax vary; this is why the unification of these taxes is an innovation in the taxation practice. The income tax subjects comprise juridical and natural persons receiving income from any sources on the territory of the RM during the taxation year, and juridical persons-residents, which receive investment and financial income from sources outside the RM. Since there are various interpretations of the terms individual and company in the taxation and civil legislation, we will explain some of them. According to the taxation legislation juridical persons are: 1. Any enterprises, institutions, and organizations involved in enterpreneurial activity with the exception of individual enterprises and farms. 2. Non-residents with an economic presence on the RM territory According to the taxation legislation natural persons are the individual enterprises and farms. According to the taxation legislation, taxation subjects are the entities legally responsible for paying taxes. The income tax object is the net income, including the...
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...Administrative Ministry: The Ministry of Commerce, Government of the People's Republic of Bangladesh is the administrative Ministry of ICAB. ICAB's Vision: To meet the ever-changing global economic demands dominated by WTO regime, the ICAB is fast becoming a body of professionals whose expert services will be highly sought after- - To anticipate, meet and exceed the rising expectations of the society - To better use of opportunities to face the challenges of fiercer global competition - To recognize the changes in economy/ business and recognize the path to success by adopting changes in knowledge management and acquiring skills - To recognize its role as a regulatory body to equip its members (Chartered Accountants) with top-quality education and values...
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...business scenario and reading the questions that were provided for this assignment it was determined that this business entity would be considered a general partnership between Lou, Jose, and Miriam. This being said this partnership is based on Miriam taking most of the financial risk from being the primary financial investor. This type of business also pays quite a bit of taxes due to the nature of products sold. These various taxes are paid in many ways and to different organizations. One of these ways are on the alcohol at time of initial sale to the business. This is unless they manage to become tax exempt. Secondly they must then charge sales tax on purchases by customers not just for food but alcoholic beverages also. With all of these taxations there are other issues there are also many liabilities involved in this business scenario. The liabilities include but are not limited to the risk of improperly prepared foods such as chicken, fish, and beef, with the possibility of cross contamination and salmonella due to uncleanliness. There is also the possibility of alcohol sales to under age customers unless there are rules and practices set in place. The rules must be followed without deviation according to local, state, and federal governments. Then finally there is the responsibility for the well being of customers who might have had to much to drink while in the establishment. The wellbeing of each customer, upon leaving the restaurant, if allowed to drive, as well as the safety...
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...State State Capitol Atlanta, Georgia 30334-1505 Designated as The Constitution of the State of Georgia CONSTITUTION OF THE STATE OF GEORGIA TABLE OF CONTENTS ARTICLE I. Bill of Rights ... ........................................................... 1 ARTICLE II. Voting and Elections ... ............................................ 8 ARTICLE III. Legislative Branch ... ............................................ 2 1 ARTICLE IV. Constitutional Boards and Commissions . 28 ARTICLE V. Executive Branch ... ................................................ 2 3 ARTICLE VI. Judicial Branch ... ................................................. 6 3 ARTICLE VII. Taxation and Finance ... ..................................... 5 4 ARTICLE VIII. Education ... .......................................................... 9 5 ARTICLE IX. Counties and Municipal Corporations ... ........ 6 . 6 ARTICLE X. Amendments to the Constitution ... .................... 1 8 ARTICLE XI. Miscellaneous Provisions ... ................................ 3 . 8 CERTIFICATE GEORGIA, FULTON COUNTY This is to certify that, pursuant to the provisions of Article XI, Section I, Paragraph V of the proposed new Constitution of the State of Georgia, the undersigned, who constitute the entire membership of the Commission created by said Paragraph, have performed the duties prescribed in said Paragraph and have incorporated the separate amendment referred to in said Paragraph into ...
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...Extra-Credit Retirement Options available to employees without a plan provided by employer and plans available to the Self-Employed. Figuring out the details of what retirement options are available for ones’ self has become a topic of interest due to recent economic and governmental changes. To better investigate retirement options, it may be wise to deal with a scenario. If James and Dena are married, both under the age of 50, with two dependent children, and working for Daisy Inc., what options would be available to them if there was no retirement plan in place by the company? Many firms typically offer plans Qualified Pension and Profit-Sharing Plans that include 401(k) plans and stock bonus plans; however this is not the case for James and Dena. Here, this couple would need to consider Individual Retirement Accounts (IRAs). These fall under the main categories of Traditional IRAs (where there are fully deductible IRA contributions for the amounts being the lesser of $5,000 or earned income- the amount of $6,000 is not applicable to this couple due to their age), or ROTH IRAs , also known as “back loaded IRA” ( where the tax benefits are not received at the beginning of the IRA, but are realized at the end). It is generally suggested that persons go ahead with ROTH IRAs rather than Traditional IRAs as there are more benefits to be had. While James’ Traditional IRAs would grow tax-deferred, (he would not pay taxes on contributions until withdrawn, at retirement), with...
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...OVERVIEW OF FEDERAL TAX PROVISIONS AND ANALYSIS OF SELECTED ISSUES RELATING TO NATIVE AMERICAN TRIBES AND THEIR MEMBERS Scheduled for a Public Hearing Before the SENATE COMMITTEE ON FINANCE on May 15, 2012 Prepared by the Staff of the JOINT COMMITTEE ON TAXATION May 14, 2012 JCX-40-12 CONTENTS Page INTRODUCTION AND SUMMARY I. 1 GENERAL RULES REGARDING THE TAXATION OF INDIAN TRIBES AND TRIBAL MEMBERS AND THE TAXING POWERS OF INDIAN TRIBES ................. 3 A. Income Taxation of Indian Tribes and Wholly Owned Tribal Corporations................ 3 1. Federal income taxation of Indian tribes and wholly owned tribal corporations ... 3 2. State taxation of Indian tribes ................................................................................. 4 B. Tax Treatment of Enrolled Members of Indian Tribes ................................................. 7 1. Federal tax............................................................................................................... 7 2. State tax................................................................................................................... 7 C. Taxing Powers of Indian Tribes .................................................................................... 9 D. Alaska Native Settlement Trusts................................................................................. 10 II. SELECTED FEDERAL TAX RULES AND ISSUES RELATING TO INDIAN TRIBES AND THEIR MEMBERS ............
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...|Sandeep Kumar | | |[pic] | | |sandeep_sidhwani@yahoo.com | | | | | | | | |[pic] | | |+92 333 717 3723 (preferred) | | | | | | | | |[pic] ...
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...Debt versus Equity Financing Debt versus Equity Financing Client Letter Accounting Associates 1425 Accounting Dr Chicago, IL 68572 April 18, 2015 John Doe, Chief Administrator XYZ Corporation 123 Somewhere St. Anywhere, USA 12345 Dear Mr. Doe: It was good to see you at the community fund raising event last Saturday afternoon. It is an honor to support this event for our community. In our meeting of February 16, you asked for guidance on the best possible approach in financing capital for your new corporation. There are two alternatives in financing, debt financing, which is borrowing from a lender and equity financing, which is selling of stocks to investors. It would be our recommendation as a start-up corporation to utilize both forms of financing to raise your capital while keeping debt financing to the minimum. In reaching this conclusion we considered the advantages and disadvantages, listed below, of debt financing versus equity financing. We reviewed the Internal Revenue Service’s (IRS) approach on this matter and in consideration of code section 385 which is used to determine if the financing is debt or equity. The IRS may re-characterize debt financing to equity financing under this code section based on the circumstances of the financing (Antebi & Krauthamer, 2014). Advantages of Debt Financing | Disadvantages of Debt Financing | Interest paid is a deductible expense | Reduced cash flow due to monthly payment | Shareholders do...
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...on large-screen TVs that hang around the bar. They do not have much money, but they have Miriam, a wealthy investor who does not have time to participate in the business, but wants to provide capital to start the business in return for a percentage of ownership. Three people, Lou, Jose, and Miriam want to go into business together. They plan to open a sports bar/restaurant. The facility will offer a place for people to socialize, eat, drink, and watch sports. Lou and Jose have the skills to open and run such an adventure, but have little capital. However, Miriam is wealthy and willing to fund the project for a percentage of ownership. In this scenario, the group must decide the best business entity taking into consideration control, taxation and liability issues. This business venture is small in nature but has high liability risk. People, alcohol, and sports mixed together can be volatile; therefore the business owners should consider a partnership that limits their own personal liability. A limited liability company combines the most favorable attributes of general partnerships, limited partnerships, and corporations (Cheeseman, 2010). The formation of an LLC requires the company to include LLC (in some form or fashion) in the title of the company. It can be made up of one or more members. Filing of the articles with the appropriate state office includes the following: Name, LLC, address (both mailing and street), period of duration and management (Cheeseman, 2010). ...
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...Indian BPOs – Waking up to the Philippines opportunity 1. How has the global economic downturn, discussed in the opening profile and throughout this chapter, impacted jobs outsourcing in the BPO industry? Starting out as a mortgage crises in the United States the economic crisis spread globally and lead to a worldwide recession. In such a difficult time, companies need to reduce costs and improve their performance in order to remain competitive on the market. Obviously, Outsourcing provides many benefits, such as improvement of process performance, reduction of fixed costs, increased flexibility, greater focus on core competencies and strategic business operations. The BPO service market presents growth estimated in 10 to 20% in the period 2008-2009, particularly in the last two quarters of 2008 and first quarters of 2009. However, in the short term, companies might not consider outsourcing as a solution in a financial crisis due to upfront investment and lack of managerial capabilities. In the first place, companies’ primary goal is to survive. They won’t start new projects. Thus, in times of crisis, company prefer cost reduction and investment delays rather than BPO and Offshoring. Nevertheless, in the long term, the economic crisis would result in an increase in demand for BPO services once the economy starts recovering. Furthermore, delay of other projects in times of crisis and recession also contributes to the expansion in the BPO industry. Companies will want to...
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...Ketlie K. Daniels Professor: Christopher Zapalski Federal Taxation – ACC 307 006016 November 21, 2010 Discuss the different types of interests and the IRS rule related to the deductibility of each type for tax purposes. Interest is defined as compensation for the use or forbearance of money. The general rule permits a deduction for interest paid or accrued within the taxable year on indebtedness. There are several types of allowable interest. If you paid or accrued interest on a loan and used the loan proceeds for more than one purpose, you may have to allocate the interest. This is necessary because different rules apply to investment interest, personal interest, trade or business interest, and home mortgage interest. Interest on Qualified Student Loans - The deduction is allowable only to the extent that the proceeds of the loan are used to pay qualified education expenses. Interest paid on student loans are treated differently than other interest expenses. Unlike other interest, student loan interest is not itemized on your tax return, which means it can be deducted regardless of whether you itemize or use the standard deduction. Investment Interest - is interest paid on money borrowed to purchase or hold investment property. Investment interest is deductible as an itemized deduction to the extent of net investment income. Qualified Residence Interest - interest on a home mortgage, which may be deductible as an itemized deduction. Includes interest on acquisition...
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...Chapter 25 Canadian Taxation © CSI GLOBAL EDUCATION INC. (2013) 25•1 25 Canadian Taxation CHAPTER OUTLINE How does the Canadian 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...
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...failed to produce literate students as they do not meet the stipulated standards with many of them drop out of school. The schools are in a crisis and need urgent help to solve the problem. Nevertheless, private schools are associated with good performance and high academic standards and produce qualified and literate students. The private schools are a model that needs to be emulated by public schools to improve their performance. Public schools need to make use of use private schools as an example to be followed. However research indicates that the underlying issue that is affecting the performance in public school in limited funding which affects the daily activities in the educational institutions. A lot need to be done, in terms of additional funding, to bridge the gap in terms of performance between public and private schools. Education is the foundation of democracy as well as freedom and a key to financial prosperity. Education has never been vital like in the modern world as it determines the future of a nation and the young people. Public schools have to strive to offer equality in their institutions unlike any era in a country’s history. The demand for quality education and improved performance in public school is vital with a rising need to educate all students and assist them meet demanding academic standards ( Hochschild and Nathan Scovronick 456). The system need to be efficient and assist them to face the future, as well as an increasingly dedicated workforce...
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...decisions are capital budgeting, capital structure, and working capital management. Capital budgeting is the process of planning and managing a firms long-term investments and an example of this would be an education. Capital structure is the mixture of debt and equity maintained by a firm and an example would be partnering with a venture capitalist, by selling a percentage of the company to receive funding for these long term investments. Working capital management is a firms short-term assets and liabilities or how the firm funds its everyday to day activities, and an example would be a firm paying the wages of the employees. 2. The primary disadvantages are that sole proprietorships and partnerships can have unlimited liability for business debts, the business has a limited lifetime, there is a lot of difficulty when attempting to transfer ownership of the business, and the business will have difficulty growing due to the inability to raise cash for these investments. Sole proprietorships and partnerships have an advantage over corporations because they are very simple to form, and these businesses are not considered legal people so, the profits of the business are only taxed once. 3. Corporations have a disadvantage as they are vulnerable to double taxation because the corporation is a legal person, allowing the government the tax their corporate profits twice. Two advantages of a corporation would be that the ownership is easily transferred through shares of the...
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...Withdrawal from RRSP, RRIF or DPSF must be included in computing income under 56(1) (h), (i) and (t). 2. Old age security and employment insurance: Old age security payments are paid to individual who are at least 65 years of age and has been resident in Canada for minimum of 10 years. This benefit includes: 1. old age pension 2. supplement for lower income person Both must be included in income, but paragraph 110(1)(f) provide for a deduction for any supplement included in income. OAS claw back: If the taxpayer’s div B income is more than $66,733 for the taxation year, a portion or entire amount of the Old Age Security Benefit must be repaid. The amount of the repayment is compute ad follows: The lesser of: a. OAS Benefits xx b. Income under division B xx Less: 66,733 Excess, if any xxx 15% of excess (repayment) xxx Example: Mr. A’s Div B income for the current taxation year is $80,095. After the tax return was prepared, it came to your desk for review. You found out the Old age security benefits of $6,270 has not been included in the computation. Non refundable credit base is 47,600 and tax installment for the years...
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