Chapter 1 E1-4. The Role and Environment of Managerial Finance 11 Agency Costs Answer: Agency costs are the costs borne by stockholders to maintain a governance structure that ensures against dishonest acts of management‚ and gives managers the financial incentive to maximize share price. One example of agency costs is stock options‚ which are used to provide an incentive for managers to work diligently for the benefit of the firm. Tips are similar to stock options in that they
Premium Taxation Progressive tax Income tax
P R E N T I C E H A L L’ S F E D E R A L TA X AT I O N 2013 Individuals EDITORS THOMAS R. POPE University of Kentucky KENNETH E. ANDERSON University of Tennessee CONTRIBUTING AUTHORS D. DALE BANDY University of Central Florida LEANN LUNA University of Tennessee N. ALLEN FORD University of Kansas TIMOTHY J. RUPERT Northeastern University ROBERT L. GARDNER Brigham Young University CHARLENE HENDERSON Mississippi State University RICHARD J. JOSEPH Hult International
Premium Taxation Tax Taxation in the United States
International Tax Lesson 1 – Taxation Principles – Residence and source Corporations Agenda • Residence and Source as principles of taxation • Special case 1: The Hong Kong case • Example of tax planning based on the principle of source • Special case 2: the USA case Agenda • Residence and Source as principles of taxation • Special case 1: The Hong Kong case • Example of tax planning based on the principle of source • Special case 2: the USA case Introduction • Taxation for
Premium Tax Income tax Taxation in the United States
Default Position(what the rules would be without Sub C)Under Code section 1001‚ when there is a transfer of property in exchange for other property‚ the transferor recognizes gain or loss in the difference between:The FAIR VALUE of the property received‚ AND His ADJUSTED BASIS (determined under Code section 1012) in the property transferred EXAMPLE OF DEFAULT POSITION X has land worth $400‚000 and in which he has basis of $150‚000. X transfers the land to Corp in exchange for 100 shares of Corp
Premium Taxation Taxation in the United States Tax
rate structure: 15% 25% 34% $0 - $50‚000 $50‚001 - $75‚000 $75‚001 - 100‚000 There is an added tax of 5% for income between $100‚000 and $335‚000. There is also an additional added tax of 3% on income between $15 million and $18 1/3 million ($18‚333‚333.33). 1-1. William B. Waugh Corporation—Corporate Income Tax Sales Cost of Goods Sold + Operating Expenses Operating Profits Dividend Income Less 70% Exclusion Interest Expense S-T Capital Gain Selling Price Cost L-T Capital Gain Selling Price
Premium Tax Depreciation Taxation
compulsory questions Q1 – Income Tax Q2 – Corporation Tax Q3 – Capital Gains Tax / Chargeable gains Q4 & Q5 – Any other area of the syllabus Minimum of 10 marks on VAT INCOME TAX COMPUTATION AND PROPERTY INCOME Income tax overview • Tax year 6 April – 5 April • 2010/11 • Calculate taxable income for tax year • Calculate income tax thereon Taxable income Income assessable Profits from a trade‚ profession or vocation (other income) Basis of assessment Tax adjusted profits of the accounts
Premium Taxation Income tax Tax
Capital gains are not taxable in Malaysia; consequently the gains do not create tax credits. ‘With the abolition of the imputation system‚ capital gains may now be distributed to shareholders without first ensuring the company has paid sufficient income tax’ (Koh‚ 2007). Essentially this means the company may distribute more dividends to their shareholders. Second advantage is it reduces the administrative costs for the tax authorities because there is no longer any need to oversee the Section 108
Premium Tax refund Taxation in the United States Tax
entity that is totally inseparable from its single owner. The law treats the business and the owner as the same. Because of this‚ all liabilities are taken for the owner. The owner does not pay income tax separately for the business‚ but reports the business income or losses on his/her individual income tax return. In order to start a sole proprietorship‚ one must be at least eighteen years old. To start with‚ the minimum requirements need to be fulfilled. The person must visit the DTI Business
Premium Taxation Taxation in the United States Tax
business tax. 3. False – advalorem tax. 4. False – if the business is VAT-registered or engaged in business tax-exempt transactions‚ it shall not be subject to 3% OPT. Also not all OPT rate is 3%. 5. False – Non-VAT business is not allowed to have Input VAT. 6. True 7. False – expressly exempted from business tax by law. (R.A. 8424) 8. False – the 3% is applicable only to transport by land. Transport by water and air is subject to 12% VAT. 9. True 10. False – 2% percentage tax. 11. True
Premium Tax Taxation Taxation in the United States
seeking development. In course of time it has adopted a wide variety of economic policies‚ many of which had long term effects (both positive and negative impacts) on the lives of its people. The crucial policies that the government of the country adopted over time are – Fiscal policy‚ Monetary policy‚ Income distribution strategy‚ Government policy‚ Tax policy‚ Trade policy‚ etc. The impacts of these policies have had widespread effects on various macroeconomic variables of the country. Various
Premium Tax Income tax Monetary policy