Definition of Tax ; The word ‘tax’ has been derived from the French word ‘taxe’ and the Latin word ‘taxare’ which means ‘to charge’. Tax is a contribution exacted by the state. It is a non-penal but compulsory and unrequited transfer of resources from the private to the public sector‚ levied on the basis of predetermined criteria. According to P. E. Taylor‚ “ Taxes are compulsory payment to government without expectation of direct return in benefit to the taxpayer. According to
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Tax Research Exercise 1 1) 147(c)(2)(C)(iii)Insolvent farmer.—For purposes of clause (i)‚ farmland which was previously owned by the individual and was disposed of while such individual was insolvent shall be disregarded if section 108 applied to indebtedness with respect to such farmland. 2) Federal Tax Regulations‚ Regulation‚ §1.351-1.‚ Internal Revenue Service‚ Transfer to corporation controlled by transferor Click to open document in a browser Reg. § 1.351-1 does not reflect P
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first at the corporate level when earned‚ then again at the shareholder level when distributed as dividends.” It means that the business will be costlier to start than other business entities. Section 351 governs whether transfers to a corporation are tax-free or taxable. “No gain or loss shall be recognized if property is transferred to a corporation by one or more persons solely in
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WHAT IS TAX PLANNING ? Tax planning is an essential part of your financial planning. Efficient tax planning enables you to reduce your tax liability to the minimum. This is done by legitimately taking advantage of all tax exemptions‚ deductions rebates and allowances while ensuring that your investments are in line with your long term goals. Tax-planning amounts to making investments or contributions in line with prescribed guidelines that lead to reduction in tax liability. Simply put‚ the tax liability
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Case 8 RE: Melvin Corporation and Vivian Company Nonmonetary Transaction Facts: Melvin Corporation and Vivian Company entered into an agreement on January 1‚ Year 1‚ to unconditionally exchange assets. Melvin agreed to transfer‚ on January 1 of Year 2‚ a building that cost $100‚000‚ but had an appraised value of $300‚000‚ while Vivian agreed to transfer a boat that had originally cost $250‚000. As of December 31‚ Year 2‚ Melvin had received title to the boat but had not transferred title to
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Growth This paper investigates the design of tax structures to promote economic growth. It suggests a “tax and growth” ranking of taxes‚ confirming results from earlier literature but providing a more detailed disaggregation of taxes. Corporate taxes are found to be most harmful for growth‚ followed by personal income taxes‚ and then consumption taxes. Recurrent taxes on immovable property appear to have the least impact. A revenue neutral growth-oriented tax reform would‚ therefore‚ be to shift part
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TRANSFER PRICING IN INDIA FOR DOMESTIC TRANSACTIONS Vishal Achanta‚ No.632 All references to the ‘statute’ must be construed to mean the Income Tax Act‚ 1961‚ as amended by the Finance Act‚ 2012. Transfer pricing is a relatively new concept in the Indian taxation regime‚ and transfer pricing with respect to domestic transactions is barely a year or two old. This article aims to explore the basics of transfer pricing and specified domestic transactions in India‚ and identify areas of improvement
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Service Tax Service Tax is a form of indirect tax imposed on specified services called "taxable services". Service tax cannot be levied on any service which is not included in the list of taxable services. Over the past few years‚ service tax been expanded to cover new services. The objective behind levying service tax is to reduce the degree of intensity of taxation on manufacturing and trade without forcing the government to compromise on the revenue needs. The intention of the government
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partnership interest by $5‚000; therefore‚ Susan recognizes a $5‚000 capital gain on disposition of the interest. 3. Beth and Tom are partners in Borts Security. Beth owns a 70% interest‚ and Tom owns the remaining 30%. Borts had the following transactions for the current year: Sales $345‚000 103500 241500 Dividends received 20‚000 6000 14000 Municipal bond interest 8‚000 2400 5600 Short-term capital gain 3‚000 900
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gross income Income in respect of a decedent; and Income from an interest in an estate or trust § 1.61-1(a) – Gross income includes income realized in any form‚ whether in money‚ property or services. Gross income includes the receipt of any financial benefit which is Not a mere return of capital‚ and Not accompanied by a contemporaneously acknowledged obligation to repay‚ and Not excluded by a specific statutory provision § 1.61-2(d) If services are paid for in property‚ the FMV of the
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