...1 http://www.miteshk.webs.com TAXATION CHAPTER 1: INTRODUCTION The word tax is derived from a Latin word “Taxare “it means to estimate or value. The term tax to a common man means money paid to the Government out of compulsion without deriving any benefit directly by himself or his family members. As per taxation tax means statuary payment to be made b the public and imposed by the Government. Definition: As per Prof. Adams: ¾ From the Stand point of the state, a tax is source of derivate revenue ¾ From the point of the citizen, A tax is a coerced payment ¾ From the Administrative point of view, it is a demand for money by state in conformity to establish rules ¾ From the point view of a Theory, a tax is a contribution from the individual for common expenditure Characteristics of Tax: 1. Tax can be imposed by the Government only 2. Taxes are paid in the form cash only 3. the aim of levying tax is to promote the welfare of the people living in the country 4. the object of tax is to raise revenue to the Government 5. tax is a legal collection 6. payment of tax involves an element of sacrifice 7. it is levied by the Government by virtue of its power confirmed under the Constitution 8. Tax is not a payment for specific service rendered by the Government to tax payer 9. Tax is imposed on income or wealth or on a commodities i.e. either directly or indirectly, but tax is actuallypaid by the individuals. Objects of...
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...BA (Hons) Accounting (Full-time), Edinburgh Napier University City University of Hong Kong School of Continuing and Professional Education Taxation (Hong Kong) 2013/14 Trimester 1 COURSEWORK ASSIGNMENT DUE DATE: 18 November 2013 (Monday) (Answer the following questions within 1,500 words): (a) George Chan has been employed by Diamond Ltd (Diamond) in the UK as a manager since 1 January 2010. On 1 April 2011, George was posted to Hong Kong to work for two years for the Hong Kong branch of Diamond. His assignment involved working in the PRC and Hong Kong. Because of his new assignment, Diamond revised George’s employment contract such that he enjoyed longer annual leave and accommodation benefit in Hong Kong. His position in the Hong Kong branch was a manager. However, during the two-year assignment, George was still required to report his work to his senior in the UK. During the year ended 31 March 2012, George worked for 170 days in Hong Kong, 150 days in the PRC, and 46 days (including 26 days annual leave) in the UK. Required: Explain whether George Chan’s employment income was sourced in Hong Kong or not, and to what extent his employment income should be assessed to Hong Kong salaries tax for the year of assessment 2011/12. (12 marks) (b) The following additional information for the year ended 31 March 2012 is available in respect of George Chan (all amounts are denominated in Hong...
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...1) The advertising expense is absolutely to be claimed 100% for the amount incurred as it is a part of the business property investment. Repairs is categorized as to the extent which is to refresh the house as to its beginning state will be a deduction for example repair the leaking proof, repair the floor be tear out. However the repairs that is excessive relating to using the better material or replacing the stuff or equipment which are not supposed to be a part of the property such as electronic system, gas, water system and etc would be not entitled to be deductible. 2) Kelly would record the amount that is out of her pocket ($350-$295=$55) as the deduction for repair. 3) Nina and Ben can claim the depreciation for the investment property as 2.5% per year applied for kind of house or building, so they could claim $146,700 x 2.5% = $3668 for ITR 2013. The written down value of the property could be $146,700 - $3668 x 9 - $3688 x 313/365 = $110542 . 4) If the house is rented out fully and Luke does not living there at all, then it is treated as an investment property and all the expenses incurred likewise would be deductible. In the case Luke would like to rent it partly for example he rents out 2 out of 3 rooms of house and hold the remaining room for living when he is staying the holiday there, then he could no claim the occupation expense such as depreciation, mortgage or interest,… but the running expense such as advertising, cleaning, travel to the...
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...Chapter 8 Property Dispositions Questions and Problems for Discussion 1. a. Section 1231 asset. b. Capital asset. c. Section 1231 asset. d. Capital asset. e. Noncapital asset. f. Capital asset. g. Capital asset. h. Section 1231 asset. Application Problems 2. a. $50,000 cost – $37,200 acc. book depr. = $12,800 book basis $50,000 cost– $41,000 acc. book depr. = $9,000 tax basis b. $41,000 tax depr. – $37,200 book depr. = $3,800 excess tax depreciation $3,800 favorable difference × 35% = $1,330 deferred tax liability c. $14,750 amount realized – $12,800 book basis = $1,950 book gain $14,750 amount realized – $9,000 tax basis = $5,750 tax gain d. The $3,800 excess of tax gain over book gain is an unfavorable difference and a reversal of the favorable difference represented by the excess tax depreciation through date of sale. Therefore, this book tax difference results in a $1,330 reduction in the deferred tax liability computed in b. 7. a. Amount realized on sale: Cash $75,000 Purchaser’s note 675,000 $750,000 Adjusted basis (535,000) Gain realized on sale $215,000 b. $215,000 gain recognized. TPW’s tax basis in the note at the end of year equals the note’s $641,250 face value ($675,000 original face value – $33,750 August principal payment). c. $215,000 gain realized ÷ $750,000 contract price = 28.67% gross...
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...Personal Relief During the 2010 budget, was to announce that the release rate of individuals increased to RM9, 000 from RM8, 000 previously. However, during the presentation of 2011 budget, there is no change to the rate of release of the individual. The individual discharge rates must change in 2012 budget from RM9, 000 to RM 10, 000. This change is necessary because at present, all consumer goods prices rise but wages are not increased. This situation gives a burden for citizens as the living costs are increased. The increase in the rate of release of these individuals should be improved to protect the welfare of the citizens. Income Tax Nowadays a housewife spent at least RM20 to buy fresh food beverages for lunch and dinner. The food is just enough for five members of the family. If we ask the housewife about the price of the foods, most of them will complaint about the increasing of the price. If there is a shop selling goods that can get wet in the "price collapse" every day, they will raid. The expenses are increasing more than doubled nowadays. How about the middle class of people if the expenses are increased. With the movement and salary increases for the middle class did not rise dramatically as house prices and consumer goods, they have to manage their expenses wisely. Sometimes, their monthly salary is not enough. Three-quarters of the monthly salary are used to pay for the house installment or house rental and car loans. Only a quarter of the salary is left for...
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...INCOME TAXATION GBS 1 OBJECTIVE: The students at the end of the module should be able to distinguish the different kinds of taxes, the nature, scope, basis, theory, purpose, situs, limitations, subject of taxation and escape from taxation, the powers of the sovereign, characteristics of taxes, and the basic principles of a sound tax system, as well as the different taxable income and deductions. Definition of Terms TAXATION – is a power inherent in every sovereign state to impose a charge or burden upon persons, properties or rights to raise revenues for the use and support of the government and to enable it to discharge its appropriate functions. - It is a mode of raising revenue for public purposes. (Cooley) TAX – is a forced burden, charge, imposition or contribution assessed in accordance with some reasonable rule of apportionment by authority of the sovereign state upon person, property, or rights exercised, within its jurisdiction to provide public revenues for the support of the government, administration of the law or payment of public expenses. INCOME TAX SYSTEM OF THE PHILIPPINES • GROSS INCOME TAXATION-where a Final Tax is imposed on the gross amount of specified types of income. Example: Interest, royalty, prize, dividend, capital gain • NET INCOME TAXATION- certain deductions are allowed and subtracted from the aggregates of income not subject ot final tax; the tax is computed based on the resulting net income. THEORY AND BASIS OF TAXATION > necessity to defray the...
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...Taxation Finance Act 2009 Alan Melville S IT IN TH W EEN ON NO IFT ITI F ED ● ● 15th Annual Edition ● ● Class Tested Over 250 Worked Examples ● Over 250 Exercises and Questions On ACCA, CIPFA, AIA and IFA Reading Lists Taxation Supporting resources For instructors Visit www.pearsoned.co.uk/melville to find valuable online resources • Complete, downloadable Instructor’s Manual For more information please contact your local Pearson Education sales representative or visit www.pearsoned.co.uk/melville We work with leading authors to develop the strongest educational materials in accounting, bringing cutting-edge thinking and best learning practice to a global market. Under a range of well-known imprints, including Financial Times Prentice Hall, we craft high quality print and electronic publications which help readers to understand and apply their content, whether studying or at work. To find out more about the complete range of our publishing please visit us on the World Wide Web at: www.pearsoned.co.uk Taxation Finance Act 2009 Fifteenth edition Alan Melville FCA, BSc, Cert. Ed. Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsoned.co.uk First published 1995 Fifteenth edition published 2010 © Pearson Professional Limited 1995, 1996 © Financial Times Professional Limited 1997, 1998 © Pearson Education Limited 1999...
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...A Report on “Pre-Budget discussion And its reflection in National Budget 2015-16” SUBMITTED TO Taher Jamil Course Instructor Business Taxation Course no: F-203 Lecturer Department of Finance Faculty of Business Studies University of Dhaka SUBMITTED BY group # Date of Submission: 11th August, 2015 Group Members Name | ID No. | Bodrun Nesa Ali | 20-008 | Pronab Saha | 20-110 | Ratila Haque | 20-124 | Tamanna Jahan Toma | 20-128 | Aleya Hossain Lima | 20-219 | Letter of Transmittal August 11, 2015 Taher Jamil, Lecturer & Course Teacher, Department of Finance, Faculty of Business Studies, University of Dhaka. Dear Sir, It is a great pleasure for us to submit the report on “Pre-Budget discussion And its reflection in National Budget 2015-16” , which is prepared as a fulfillment of the requirement of the course named “Business Taxation” of BBA program under ‘Department of Finance’ of the Faculty of Business Studies, University of Dhaka. This study has given us the opportunity to learn the basics of tax and also given us the practical Knowledge through the discussion on budget. The analysis that we observed through this report will help us in our future, indeed. We would like to convey our special thanks and gratitude to you for patronizing our effort & for giving us proper guidance and valuable advice. You will be delighted to know that, we have tried our best to make this report more & more informative and factual. Sincerely Yours, Bodrun...
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...Taxation is said to be one of the key governance tools of any state including the upholding of Zambians sovereignty. INTRODUCTION The most fundamental function of taxation is raising revenue to pay for governmental expenses and programs. "Taxes are necessary to raise revenue for public goods and infrastructure, as well as to provide other sorts of public services conducive to general welfare and economic growth." Tax revenues pay for the necessary goods – like national defense or a legal system – that an unregulated market cannot provide by itself. More often overlooked is the role of taxation as a catalyst for the development of responsive and accountable government, and for the expansion of state capacity. Taxes, however, do more than simply raise revenue: "Any tax that produces revenue will in some way alter the social and economic order." Taxes that only raise revenue without effecting other changes do not exist in the real world. The concept of fiscal policy captures that link between revenue collection and government spending. More specifically, taxes can be used to increase or decrease inflation and purchasing power, stimulate investment, and prevent harmful concentrations of wealth. Taxation is an underrated tool in the effort to build more capable and responsive states. The role of taxation as a central force in the development of democracy resonates strongly in Anglo-American history. The duty of paying for government legitimizes demands for services...
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...TAXATION PAPERS WORKING PAPER N.33 - 2012 Serena Fatica Thomas Hemmelgarn Gaëtan Nicodème The Debt-Equity Tax Bias: consequences and solutions Taxation and customs union Taxation Papers are written by the staff of the European Commission's Directorate-General for Taxation and Customs Union, or by experts working in association with them. Taxation Papers are intended to increase awareness of the work being done by the staff and to seek comments and suggestions for further analyses. The views expressed in the Taxation Papers are solely those of the authors and do not necessarily reflect the views of the European Commission. Comments and inquiries should be addressed to: TAXUD TAXATION-PAPERS@ec.europa.eu Cover photo made by Milan Pein Despite all our efforts, we have not yet succeeded in identifying the authors and rights holders for some of the images. If you believe that you may be a rights holder, we invite you to contact the Central Audiovisual Library of the European Commission. This paper is available in English only. Europe Direct is a service to help you find answers to your questions about the European Union Freephone number: 00 800 6 7 8 9 10 11 A great deal of additional information on the European Union is available on the Internet. It can be accessed through EUROPA at: http://europa.eu. For information on EU tax policy visit the European Commission's website at: http://ec.europa.eu/taxation_customs/taxation/index_en.htm ...
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...BASICS OF TAXATION (Income Tax Ordinance, 1984) Updated till Finance Act. 2012 Of all the direct taxes, Income Tax ranks foremost. By nature and heritage, many of us tend to be just “free riders” in the society. We are little emotional and sometimes unreasonable in demanding more and more state services without the mentality to yield our due share to the cost of the exchequer. Tax laws and personnel connected therewith are many often thought to be inimical by the taxpayers. But it’s a reality that to safeguard our existence and interest in the society, every one of us must pay tax according to our abilities to keep the statecraft running. Taxation is not only a major means of public finance but also it plays a crucial role in ensuring a social and economic justice. The incidence of direct taxes Viz. Income-Tax, gift-tax cannot be shifted on others and it has to be borne by the person on whom it is levied. My efforts today will be to enlighten the participants of this course on the different aspects of the direct taxes. We shall confine ourselves to the contents only without going into the details of relevant sections of the laws which can be had from the IT. Ordinance, 1984 as amended from time to time through annual Finance Act. Income-Tax: Income Tax is a dynamic but mostly a practical subject. It is indeed a difficult task to acquire within this short time at least a working knowledge of income tax especially when the laws of it originate from more than one source, such...
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...I.GENERAL PRINCIPLES ( THE POWER OF TAXATION ( Definitions: 1. Taxation: Power by which the sovereign raises revenue to defray the necessary expenses of the government from among those who in some measure are privileged to enjoy its benefits and must bear its burden. 2. Taxes: Enforced proportional contribution from properties and persons levied by the State by virtue of its sovereignty for the support of government and for public needs. ( Characteristics of Taxes: 1. forced charge; 2. generally payable in money; 3. levied by the legislature; 4. assessed with some reasonable rule of apportionment; 5. imposed by the State within its jurisdiction; 6. levied for public purpose. ( Theories or bases of taxation: 1. Lifeblood Theory Taxes are the lifeblood of the nation. Without revenue raised from taxation, the government will not survive, resulting in detriment to society. Without taxes, the government would be paralyzed for lack of motive power to activate and operate it. (CIR vs Algue, Inc., et. al.) Illustrations of Lifeblood Theory: a. Collection of taxes may not be enjoined by injunction. b. Taxes could not be the subject of compensation and set-off. c. A valid tax may result in destruction of the taxpayer's property. 2. Necessity Theory Existence of a government is a necessity and cannot continue without any means to pay for expenses. a. Marshall Dictum “ Power to tax is the power to destroy” – describes the unlimitedness of the power...
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...The Proposed Salary Income Tax Slab Rates 2011-12 In Pakistan Federal Budget Bill are as follows: 1. Where the taxable income does not exceed Rs.350,000 0% 2. Where the taxable income exceeds Rs.350,000 but does not exceed Rs.400,000 1.50% 3. Where the taxable income exceeds Rs.400,000 but does not exceed Rs.450,000 2.50% 4. Where the taxable income exceeds Rs.450,000 but does not exceed Rs.550,000 3.50% 5. Where the taxable income exceeds Rs.550,000 but does not exceed Rs.650,000 4.50% 6. Where the taxable income exceeds Rs.650,000 but does not exceed Rs.750,000 6.00% 7. Where the taxable income exceeds Rs.750,000 but does not exceed Rs.900,000 7.50% 8. Where the taxable income exceeds Rs.900,000 but does not exceed Rs.1,050,000 9.00% 9. Where the taxable income exceeds Rs.1,050,000 but does not exceed Rs.1,200,000 10.00% 10. Where the taxable income exceeds Rs.1,200,000 but does not exceed Rs.1,450,000 11.00% 11. Where the taxable income exceeds Rs.1,450,000 but does not exceed Rs.1,700,000 12.50% 12. Where the taxable income exceeds Rs.1,700,000 but does not exceed Rs.1,950,000 14.00% 13. Where the taxable income exceeds Rs.1,950,000 but does not exceed Rs.2,250,000 15.00% 14. Where the taxable income exceeds Rs.2,250,000 but does not exceed Rs.2,850,000 16.00% 15. Where the taxable income exceeds Rs.2,850,000 but does not exceed Rs.3,550,000 17.50% 16. Where the taxable income exceeds Rs.3,550,000 but does not...
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...total number of shares of all other classes of stock of the corporation. The purpose of this provision is to not discourage the formation of corporations. Per our text, there has been no change in the taxpayers wherewithal to pay taxes so the stock represents a continuation of investment but in a different form. Source: Federal Taxation Comprehensive Topics Chapter 14: Page 5 and http://www.irs.gov/pub/irs-drop/rr-03-51.pdf 20: Corporation tax years C-corporations have greater flexibility in choosing a tax year. They may choose to use as their tax year the calendar year or any other12 month period. They can choose a tax year different from its shareholders which can result in income deferral in the first year. This differs from other business organizations as follows: • S-corps and personal service corporations: required to use a calendar year for tax purposes unless a business purpose can be established for using a fiscal year. • Partnerships: required to use tax year of partners with majority interest, or principal partners, or least aggregate deferral method. • Sole proprietors: required to use calendar year Source: Federal Taxation Comprehensive Topics Chapter 14: Page 25 22: Differences in treatment of capital gains and capital losses of corporations and individuals The calculation of gains and losses from the...
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...Assignment On Impact of Indirect Tax in the Economic Growth of Bangladesh Submitted to Shish Haider Chowdhury Course Instructor Auditing & Taxation Submitted By Sudipta Paul Class ID-1577 21st Batch Date of Submission 07.09.2014 Institute of Business Administration Jahangirnagar University Indirect tax: An indirect tax (such as sales tax, a specific tax, value added tax (VAT), or goods and services tax (GST)) is a tax collected by an intermediary (such as a retail store) from the person who bears the ultimate economic burden of the tax (such as the consumer). The intermediary later files a tax return and forwards the tax proceeds to government with the return. In this sense, the term indirect tax is contrasted with a direct tax which is collected directly by government from the persons (legal or natural) on which it is imposed. Some commentators have argued that "a direct tax is one that cannot be shifted by the taxpayer to someone else, whereas an indirect tax can be. An indirect tax may increase the price of a good so that consumers are actually paying the tax by paying more for the products.[2] Examples would be fuell, liquor, and cigarette taxes. An excise duty on motor cars is paid in the first instance by the manufacturer of the cars; ultimately the manufacturer transfers the burden of this duty to the buyer of the car in form of a higher price. Thus, an indirect tax is such which can be shifted or passed...
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