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 presented in
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taxed differently from new ones. * Because of multi-tiered tax structure‚ smokers tend to prefer cheaper cigarette brands. According to the statistics provided by the Bureau of Internal Revenue (BIR)‚ consumers downshifted from medium-priced cigarettes to low-priced cigarettes. In the case of alcohol‚ consumption of low-priced beers ballooned from less than 40% in 1994 to more than 70% in 2010. * As tax is affected by inflation‚ tax burden decreases due to lack of price indexation. * The
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paper signatures‚ but which makes use of a technology known as public-key cryptography. Additional security properties are required of signatures in the electronic world. This is because the probability of disputes rises dramatically for electronic transactions without face-to-face meetings‚ and in the presence of potentially undetectable modifications to electronic documents. Digital signatures address both of these concerns‚ and offer far more security than paper signatures. Compared to all other forms
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the AVI-YONAHFINAL.DOC FEBRUARY 26‚ 2002 2/26/02 5:38 PM Book Review Why Tax the Rich? Efficiency‚ Equity‚ and Progressive Taxation Reuven S. Avi-Yonah† Does Atlas Shrug? The Economic Consequences of Taxing the Rich. Edited by Joel B. Slemrod.∗ Cambridge: Harvard University Press‚ 2000. Pp. 524. $57.95. In Greek mythology‚ Atlas was a giant who carried the world on his shoulders. In Ayn Rand’s 1957 novel Atlas Shrugged‚ Atlas represents the “ prime movers” —the talented few who bear
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Business Tax: Reading Week Notes The Robin Hood Tax * The idea behind the RHT is to generate hundreds of billions of dollars * That money could be used to kick-start the US economy and get America back on its feet * The RHT = 0.5% tax on Wall Street transactions * Benefits: * It won’t affect the vast majority of Americans * It’s easy to enforce * It’s tough to evade * It taxes those who are to blame for the global financial crisis‚ rather than
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of real estate tax Mortgage interest expense Home equity loan Deduction of interest on home equity loans When “points” are deductible Deduction of interest on debt between related parties Contribution to an individual and church Value received for contribution Charitable contribution: benefit received Contribution of services Timing of contribution Timing of contribution Charitable contribution: various Medical expense deduction and reimbursement Medical expenses: deduction and tax benefit rule 10-1
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practical experience of mechanism of collection of gift tax by National Board of Revenue (NBR). To complete the report successfully‚ we tried to gather information from News Paper‚ web sites. But the NBR does not provide information in the web site directly and even it does not publish total process to collect taxes from different sector. For this reason we had to visit NBR several times and thus we were successful to collect information about gift tax in Bangladesh. To complete this report‚ we have
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Portfolio Project ACT400 Corporate Tax-ACT400 September 1st‚ 2012 Portfolio Project ACT400 I. Problem 1-Osprey Corporation a. Facts Dan and Patrick Zimbrick‚ sole shareholders of Osprey Corporation have been required to repay compensation to Osprey Corporation that was found by the IRS to be excessive. In order to determine how these repayments are to be treated for tax purposes‚ it is important to note that in 2006 the board of directors made up of Dan‚ Patrick
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Tax Planning to Avoid Paying the Alternative Minimum Tax I worked for Ernst and Young in New York City for my busy season internship. I was placed in the Financial Services Office‚ and more specifically‚ I did tax returns for high-net-worth individuals working for financial institutions. Because all of our clients were millionaires‚ we had to fill out IRS Form 6251 to see if a client would be subject to the Alternative Minimum Tax. During the year‚ my department spends a significant amount of
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one of the most important clients at B&C is stressing to the firm that he wants the firm’s expertise to help reduce taxes on his accounts. Peter‚ a tax partner who is a more inclined risk taker has taken on the project‚ but his methods are proving to be illegitimate. He is claiming that top clients do not need third party verification on their tax information when other clients are required to have this verification. Jessica has looked at the past files and found major discrepancies that would only
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