Objectives of Lecture : At the end of this lecture‚ you should be able to: understand the ordinary concepts of income; | | THE ORDINARY CONCEPTS OF INCOME What is Income? The assessable income of an entity for a year of income includes the ordinary income of an entity and the statutory income of the entity for that year (Section 6-1 ITAA (1997)). Ordinary income is income according to ordinary concepts. The courts have had to determine what is income according to
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company‚ investors want to make sure the company is well managed. Because the differences between effective tax rates of companies of equal size that perform similar functions in the same geographical region are generally due to managerial decisions‚ a company with the lower effective tax rate could have the better administration and therefore be a better investment. The statutory corporate tax rate is the rate that is imposed on taxable income of corporations‚ which is equal to corporate receipts less
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1974‚ the tax year here at issue‚ RXL paid a dividend distribution to Xerox and paid the requisite ACT in the United Kingdom on the distribution. A portion of that ACT was set off in 1974 against RXL’s mainstream corporation tax in the United Kingdom. The foreign tax credit for that portion of the 1974 ACT is not in dispute. The portion of the ACT was not used to offset RXL’s mainstream tax was surrendered by RXL to its United Kingdom subsidiaries. The U.S IRS then withdrew the foreign tax credit for
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Corporate Tax Chapter 5: Complete Liquidations (Textbook: Corporate‚ Partnership‚ Estate and Gift Taxation (2013 Ed.) by Pratt‚ Kulsard) I. Introduction • Ch. 3 & 4: distributions of property and stock as well as those relating to redemptions and partial liquidations o Corp. continues to operate all or part of its business • Ch. 5: complete liquidation • Reasons: o Business’s profitability‚ or lack thereof‚ no longer justifies continuing the corp. o Shareholders simply seek the corp’s
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Progressive Tax vs. Flat Tax The United States economy‚ as known by all‚ is not in its best shape. One way in which the government gains money is by imposing taxes on people. There are many taxes that are placed on different things that everyone needs or already has. The United States uses a taxation system which is criticized by many. The system used in Progressive Tax; however‚ many people believe the system of Flat Tax‚ or Proportional Tax‚ should be the system that is used for taxing
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VALUE ADDED TAX FOR PCC AND IPCC 1. Value added tax in short VAT‚ was a tax introduced as early as 1919 by Dr.Wilhelm Von Siemens in Germany as a tax on improved turnover. Professor Thomas.S.Adams suggested this tax in USA as a sales tax with a credit or refund for taxes paid by the producer on goods bought for resale or for use in production of goods. However till 1953 no country introduced VAT. In the year 1954 France introduced it and since then many countries have adopted this progressive
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changed in our society since the 1700s. But at the same times things haven’t changed much. The tax laws possibly changed since the 1700s. Tax laws are the legal rules and procedures governing how federal‚ state and local governments calculate the tax you owe. The laws cover income‚ corporate‚ excise‚ luxury‚ estate and property taxes‚ to name just a few. During the french revolution the tax laws were unfair and cruel to the third estate “commoners”. The peasants paid disproportionately
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3 CHAPTER TAX DETERMINATION; PERSONAL AND DEPENDENCY EXEMPTIONS; AN OVERVIEW OF PROPERTY TRANSACTIONS Instructor: The test items in both the print Test Bank and ExamView test-creation software are numbered by question type within each chapter. Thus‚ users of ExamView can more easily preview their selections using the printed Test Bank in the same numbering system. Status: Present Topic TRUE OR FALSE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Level of current income
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To what extent does tax evasion affect the society? Word counts: 1510 words Introduction: The importance of the revenue to a country is well known in the world. The global financial system has more interconnections now than at any other time in history. (Simser.J‚ 2008‚ p.131). Tax evasion is one of most common crimes that damage the order of revenue. This is closely affecting the market economy and daily lives. Normally‚ most commentators consider tax evasion profoundly unethical
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* Flat tax in other countries In a distinct development‚ former communist counties are leading a global tax reform revolution. For instance‚ Estonia was the first country which adopts a flat tax. The tax rate was a 26 percent in 1994‚ started after the collapse of the Soviet Union. Latvia and Lithuania followed shortly after Estonia using flat tax system in the mid-1990s. Latvia picked a 25 percent rate and Lithuania chose a 33 percent rate. Russia’s government discovered the benefit about the flax
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