Income Tax Act 1961 Assessment Year: The period of twelve months starting from April 1 of every year and ending on March 31 of the next year. Previous Year: Income earned in a year (Previous year) is taxable in the next year (Assessment Year). Income earned during the previous year (PY) 2011-12 is taxable in the Assessment year (AY) 2012-13. From the AY 1989-90 onwards‚ all assesses are required to follow the financial year April 1 to March 31 as previous year for all sources of income
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BUSINESS MATH A TAX DILEMMA ASSIGNMENT 11.1 CASE STUDY 20.2 – PAGES 736 – 737 Rita just finished completing her educational requirements to become a dental hygienist. She has been offered jobs in two different cities and is trying to determine which one she should accept. Both employers offer similar benefits and working conditions‚ but the jobs are in two different states. Rita will move to the state in which she accepts a position. The first position is in Pennsylvania. Rita would earn $50‚000
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TAX ATION San Beda College of LAW – ALABANG GENERAL PRINCIPLES I. Concepts‚ Nature and Characteristics of Taxation and Taxes. Taxation Defined: As a process‚ it is a means by which the sovereign‚ through its law-making body‚ raises revenue to defray the necessary expenses of the government. It is merely a way of apportioning the costs of government among those who in some measures are privileged to enjoy its benefits and must bear its burdens. As a power‚ taxation refers to the inherent power of
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In the “Fat Tax” by David Leonhardt‚ he believes that obesity is a major cause of health problems for the American people. Leonhardt discusses with Dr. Delos M. Cosgrove‚ the chief executive at Cleveland Clinic‚ who started an initiative to stop hiring smokers. Cosgrove also stated “if there weren’t legal issues‚ he would not only stop hiring smokers. He would also stop hiring obese people” (636). Cosgrove believes that a person should be held accountable for their actions and choices when it comes
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the amount of income and expenses reported for GAAP and income tax purposes. The objective for GAAP reporting is to report the economic activities of the entity. The objective for income tax purposes is for the government to raise revenue. There are two terms that identify the types of income subject to tax under each reporting system. Firstly‚ pretax financial income is determined using GAAP. It is the amount of income on which income tax is computed for financial statement purposed. It is formally
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Glossary‚ “taxable income” is defined as “the excess of taxable revenues over tax deductible expenses and exemptions for the year as defined by the governmental taxing authority”. Therefore‚ the principles and the scope of ASC 740 are only applicable to “taxes based on income.” However‚ ASC 740 provides no further guidance on this matter and there is no authoritative literature under U.S. GAAP to clearly define the term “tax based on income”. Although there is no legal definition to differentiate
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NBER WORKING PAPER SERIES DO TAX HAVENS FLOURISH? James R. Hines Jr. Working Paper 10936 http://www.nber.org/papers/w10936 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge‚ MA 02138 November 2004 I am indebted to Claudia Martinez for excellent research assistance‚ to her and to Rosanne Altshuler‚ Reuven Avi-Yonah‚ Daniel Mitchell‚ Joel Slemrod‚ and particularly James Poterba‚ for helpful comments on previous drafts of this paper.The views expressed herein are those of
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The Buffett Rule and Tax Reform As the tax cuts enacted by George W Bush during his presidency come to a close‚ the importance of reconciling spending and taxation has produced a spirited debate as to the best manner in which to solve the debt crisis. One voice in the debate is that of Warren Buffett‚ Chairman and CEO of the holding company Berkshire Hathaway and one of the richest men in the world. He has come out against the status quo tax policies‚ stating “My friends and I have been coddled
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and Democrats unanimously agree that our current tax system is corrupt. The countless years of adding and removing policies have made our tax codes more confusing than they need to be. That is why the United States should introduce an easier and more “down to earth” form of taxation‚ a flat tax. The flat tax is a policy where everyone pays the same percentage of their income annually. Although some people prefer the current tax structure‚ a flat tax system would eliminate other taxes‚ allow more people
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Abstract In Tschetschot v. Commissioner‚ 93 TCM 914 (2007)‚ the tax court ruled that taxpayer’s losses from participating in tournament poker were limited to the amount of her winnings. The court held that tournament poker is‚ despite its differences from other types of poker‚ essentially a wagering activity and therefore should not be treated differently from other forms of gambling for tax purposes. The court also rejected the taxpayer’s equal protection argument to treat tournament poker as sports
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