Nobody downloaded yet

Taxation - Essay Example

Comments (0) Cite this document
Summary
The accounting theories enhance effective calculation and initiation of tax payable amount by a company. The theories ensure company’s responsibility and tax compliance without avoidance. Taxation affects financial position of…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.1% of users find it useful
Taxation
Read TextPreview

Extract of sample "Taxation"

Download file to see previous pages The conceptual framework of accounting holds accounting theories related to taxation together. The framework establishes goal and objectives of financial reporting by businesses. Financial accounting information provides useful information for making business and economic decision such as taxation (Riahi-Belkaoui, 2005, p. 121). The theory that financial reporting should avail significant information for taxation recognizes that reporting does not exist out of the legal, economic, political, and social environment. The conceptual framework of accounting ensures that accounting information in relation to taxation is relevant, comparable, reliable, and consistent (Bebbington, Gray & Laughlin, 2001, p. 97). Comparability and consistency of taxation benefit from having Generally Accepted Accounting Principles (GAAP). Adhering to financial statements to GAAP in relation to taxation means, they are consistent from year to year and the tax difference between various companies can be compared. Therefore, the accounting theories help in practical analysis of taxation in a business.
The accounting theories of taxation function on four assumptions. The economic entity assumption illustrates that the practices of a business are distinct from the actions of the owner. It means that tax is computed separately for the company’s profit generation. In addition, the income tax of an employee is distinctively calculated in relation to the amount of salary gained. The going concern assumption states that when financial statements are prepared, the accountant assumes that the company will move without threat of dissolution or bankruptcy (Riahi-Belkaoui, 2005, p. 97). Therefore, it means that the likely taxable amount is already catered for in the financial statements hence in the event of taxation, the business does not feel any ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Taxation Essay Example | Topics and Well Written Essays - 2750 words - 2”, n.d.)
Retrieved from https://studentshare.org/finance-accounting/1695431-taxation
(Taxation Essay Example | Topics and Well Written Essays - 2750 Words - 2)
https://studentshare.org/finance-accounting/1695431-taxation.
“Taxation Essay Example | Topics and Well Written Essays - 2750 Words - 2”, n.d. https://studentshare.org/finance-accounting/1695431-taxation.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Taxation

Taxation

...………………………………………………………………………….xxxxxx …………………………………………………………………….xxxxxx …………………………………………………………………………xxxxx ………………………………………………………………………..xxxxx @2012 Taxation Q 1.1 General changes proposed for taxation of the company cars, for the company and for employees, for the next few tax years. According to Deloitte, there are several of changes that the government has proposed that will influence the cars belonging to the company as well as the private fuel used by both employees and employers. These changes aim at increasing further the tax charge on cars with high emissions of CO2. Back in 2002, the government introduced new reforms on company cars. The company car tax reform encourages people to buy of choose cars...
5 Pages(1250 words)Essay

Taxation

...Political philosophies and Taxation There are various political philosophies in the world, and each of them possesses a considerably different view on the role of government in ensuring equality through taxation and other initiatives. This work intends to identify how liberalism and conservatism deal with the concept of taxation. In simple terms, Rawlsian liberalism claims that a just society has three qualities; a fair system of cooperation, a well-ordered society, and all citizens are free and equal (Rawls 87). In such a society, every member has the capacity to identify what is good, and has the right to discuss the concept with others and make necessary changes based on what is...
6 Pages(1500 words)Essay

Taxation

...Running head: TAXATION Taxation This paper describes UK tax environment; its types and income. Role and responsibility of a tax advisor has been discussed. After that different method of data collection is presented. Finally, a real life example is taken under consideration and the person’s income, amount of income tax payable and net capital gains are determined. Introduction Taxes are a collection of revenue from individuals who are citizens of a country or are residing in the country for purposes of leisure or work. Taxes are imposed to provide revenue for the government and allow the government to improve the civil needs of the country. A good example is the when the tax revenue collected is allocated...
6 Pages(1500 words)Essay

Taxation

...Introduction Tax is a word taken from the Latin language and has existed for thousands of years all around the world in different forms. The word ‘tax’ reffers to a charge/levy imposed by the authority on tax payers. The inability of paying this taxation can lead to punishment. Taxes are imposed by both national and subnational authorities. The payments in old times could be made through different commodities such as wheat, rice, gold or even labor hours. In contemporary taxation laws, taxes are usually paid only in the specific currency of that region. The level of taxation is always a source of debate in a country. Taxation in essence is a system created in order to...
3 Pages(750 words)Essay

Taxation

.... Chattels are personal possessions that are ‘tangible’ assets. They may include furnishings, paintings etc for households. For the taxation of chattels, the rules of the Capital Gains tax are the same as for other assets i.e. the profits earned from the exchange of the chattels are not taxed if they are lesser than or equal to £ 6,000. Exemptions Some of the assets earned by the individuals and companies are exempted from the Capital Gains Tax. These assets are the ones that one is not charged for even after they have been sold for a higher price than what they were initially brought for. According to Lee (2009), the government does not consider the gains from the sale from the ‘exemptions’ as something that has to be...
8 Pages(2000 words)Essay

Taxation

...Taxation Taxation Section Partnership refers to business comprising of two or more owners who pool their talents and resources towards a common business goal. Partnership interest refers the share of profits and losses in the limited partnership. It encompasses the interests in partnership, inclusive of all the transferable interest, management and the other rights. A partnership interest depicts the partnership percentage owned by the partners, and it represents the right to make decisions regarding partnership, the profits and the liabilities involved in partnership (Glover & Wasserman, 2003). Rights conferred to a partner by a partnership interest are as follows: Assignment of partnership interest is...
3 Pages(750 words)Essay

Taxation

...A NEUTRAL TAX SYSTEM Introduction Taxation of savings has an important role when you consider hoe economists evaluate tax systems. These savings are taxed for five reasons; first, it directly affects the tax base thus the term comprehensive income tax. Secondly, it is an important determinant of the extent to which tax system recognizes interpersonal differences in lifetime income, as opposed to annual income. Furthermore, it equalizes the tax burden. The third reason is that taxation of savings is the boundary between the taxation of personal income and taxation of company profits. Fourth, savings taxation can affect both the total amount of savings in...
8 Pages(2000 words)Essay

Taxation

...Taxation Introduction Governments are able to run their day to day activities by use of money collected from households and firms. This money is collected via taxation. Taxation is mechanism by which the government finances its expenditure by imposing charges on citizens and companies (Salanie 2003). The main use of money collected through taxation by the government is to provide goods and services to the public. Taxes also pay for education, highway and public transportation and also retirement benefits. By use of taxation the government can either encourage or discourage certain economic decisions. When the government decreases its levy on goods, there...
8 Pages(2000 words)Assignment

Taxation

...TAXATION By of the of the School The late 17th century saw an introductionof a land tax that was uniform to everybody. It practically formed the main source of revenue for the government particularly throughout the remaining part of the 17th century, the whole of 18th century and for the early part of the 19th century (James, 2009, pg. 24). In December 1798, William Pitt the Younger in his budget, announced income tax in Britain for the first time and it was introduced fully by 1799. This tax was to enable them pay for the equipment and weapons which was to enable them prepare for the Napoleonic Wars. This new progressive income tax introduced by Pitt saw the people remitting a levy of 2 old pence for every pound on...
8 Pages(2000 words)Essay

Taxation

...Should the UK government restore the 50% additional rate of income tax?” Introduction UK is being regarded as one of the few nations in the world which has higher income tax rates, which can be illustrated by the following graph. (Source HRMC 2012:30). Due to higher income tax rates, it is alleged that UK’s competitiveness has lost and hence, it is having a direct impact on its economic growth. Britain should learn from the OECD nations which have reduced their income tax rates to stimulate their economic growth. However, by increasing the income tax rates to 50%, UK has lost its competitive position as being a low-tax regime.When Margaret Thatcher came to power in 1979, she reduced the income tax rates from whooping 83% to 60... the UK...
6 Pages(1500 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Taxation for FREE!

Contact Us