Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Personal Income Tax and Revenue Forecasting - Assignment Example

Comments (0) Cite this document
As the country established a monetary system, democratic processes, and a controlled fiscal system, the early problems of hyperinflation, unemployment, and declining standards of…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.4% of users find it useful
Personal Income Tax and Revenue Forecasting
Read TextPreview

Extract of sample "Personal Income Tax and Revenue Forecasting"

Download file to see previous pages The lower tax rates are expected to stimulate economic activity and to encourage business to move from the shadow to the official (taxpaying) economy, so some of the revenue loss will ultimately be recovered. The Ministry of Finance forecasts collections of 7,789,000 markka (MK) for 2001. Data on tax collections are reported on the following page.
Based on the information provided, the ministry definitely needs to revise its 2001 forecast. This is because the pace of tax revenue being collected is not coinciding with its revenue forecasting, which is 7.8 million markka. Basically, at its best point, the tax revenue averaged about 1.2 million markka, at the end of 1999 and 2000. However, the data in 2001 shows a significant drop compared with the past three previous years when tax revenues were compared. This means that it will probably take about 20 more years or so until tax revenue reaches 7.8 million markka, because if it took 3 years to get to 1.2 million in revenue—one multiples 3 by 7 and one gets the number of approximately 21 years to create that amount of revenue. Of course, revenue could increase exponentially in years to come, thus making the target goal of 21 years achieved in a faster time period.
However, the important point to remember is that there are several factors that go into how such data is arrived at in the first place. So, supposing that Vardar’s markka strengthens as time goes on and that more people are able to pay taxes due to the economy being stimulated and people being freed up to make more money—it is entirely possible that the economy will grow significantly before the 21-year window of economic growth is due. It depends on if people can get the jobs to provide for their families and support the economy.
What factors might influence the patterns seen in the data include a variety of things. In former Soviet ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Personal Income Tax and Revenue Forecasting Assignment - 1”, n.d.)
Personal Income Tax and Revenue Forecasting Assignment - 1. Retrieved from
(Personal Income Tax and Revenue Forecasting Assignment - 1)
Personal Income Tax and Revenue Forecasting Assignment - 1.
“Personal Income Tax and Revenue Forecasting Assignment - 1”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Personal Income Tax and Revenue Forecasting

Income Tax and Corporation Tax 42 billion, but still the fall in the tax revenue over the years is very significant, even though no significant changes in the tax rates were implied. Where as, on the other hand the income tax occupies the major portion of the UK tax system. For the year 2010/11 various changes were made in the Income tax schedule, the higher tax rate was increased to 50%, changes were made to the personal allowances allowed, and as personal allowance for income above ?100,000 has been reduced as well, leading to the generation of more taxable...
9 Pages(2250 words)Essay

Analysis of Income Tax

...Personal Allowance (6,475) - - Taxable Income 67,752 3,000 24,000 Applicable tax rate 40% 20% 10% Income tax 27,100 600 2,400 Capital Gains Tax Capital Gains tax is the tax that is paid on the profit that is made by selling of assets, the tax rate is set at 18%, however there are exemptions to the general concept of the...
8 Pages(2000 words)Assignment

Income Tax (IAS12)

...of IAS 12 and set out proposals. IAS 12 prohibits companies to give an account to deferred taxes by using the deferral method based on the income statement. It instead prefers the passive methodology based on the balance sheet. In addition to the above requirement, the standard requires corporations to acknowledge either a deferral tax liability. Thirdly, IAS 12 requires recognition of deferred tax assets when it is certain that a corporation possess revenues in future to realize deferred tax asset. For instance, given that a company has a history of losses it will recognize deferred tax assets to the extent that taxable...
6 Pages(1500 words)Essay

The Flat Income Tax

...The Flat Income Tax: A Policy Whose Time Has Come The income tax in the United s has evolved from a simple system designed to generate revenue to a complex process of economic engineering and politicized monetary management. In an effort to implement the complicated maze of US tax laws, the Internal Revenue Service (IRS) has grown to become one of the largest bureaucratic institutions in the world. To eliminate this burden from the individual taxpayer as well as businesses, tax reform advocates have suggested that we move to a flat income tax system. Under the proposed...
6 Pages(1500 words)Case Study

Income tax accounting

...The Earned Income Tax Credit (EITC) is a refundable federal income tax credit for low-income working individuals and families (Internal Revenue Service, n.d.). Families with qualifying children can receive much more EITC than single workers who do not have any children. For tax year 2005, the maximum amount of EITC a qualifying worker with one child can receive is $2,662. For two or more children under one's care, the maximum amount is $4,400. For workers with no children, the maximum amount of EITC is only $399 (Tax Credit Resources, n.d.). According to the Internal Revenue Service...
2 Pages(500 words)Essay

Personal financing , income tax

...PERSONAL FINANCE James Webster Problem Many businesses have failed and individuals become bankrupt for simply not making adequate provisions for their taxation obligations. Nearly all financial decisions made in either business or personal life are affected by taxation. When a person is planning their budget, they must consider their taxation commitments along with rent, electricity and all other daily or monthly financial liabilities. Failure to do this will result in a financial debt that sometimes can grow to unmanageable levels. Problem 2 Mohammed has a yearly income of $48000 and he must add to that his income of $1000 from his investment...
1 Pages(250 words)Assignment

Income Tax

...Finance and Accounting: Income Tax Word Count: 2,021 (8 pages) SCENARIO 
 Ronni, aged 35, owns and runs a small business from a shop in Southwark, selling new and second hand bicycles and a range of cycling accessories. Her customers include commuters, as well as local cycling enthusiasts and children. The business has prepared financial statements for the year ended 30 September 2011 and relevant information is given below. 

 The Income Statement showed the business made a net profit in excess of £30,000 after taking into account the following information: 

 1. Ronni received additional income from investments and property which was included in the...
8 Pages(2000 words)Coursework

Personal Income Tax and Revenue Forecasting

...09/ 06/ Personal Income Tax and Revenue Forecasting Vardar republic revenue collection has a fiscal budget cycle that runs from June of the current year to May of the next year. The budget cycle reveals that revenue collection for the state follows a certain pattern in terms of a rising or diminishing rate in the amount of revenue collection in each month from its previous month. The pattern as shown in the past three year’s revenue collection reveals that revenue amount rises each month from the previous month in a large portion of the fiscal year. Also, the...
5 Pages(1250 words)Research Paper

Module 2, Financial and Strategic Planning (CASE)

...Financial and Strategic Planning (CASE) al Affiliation) FRANKLIN HEALTHCARE Income ment Years ending 2010 and 2011 2010 2011 ($) ($) Revenue Patient revenue 375,000,000 312,500,000 Third-party revenue 750,000,000 625,000,000 Grants & investments 375,000,000 312,500,000 Total revenue 1,500,000,000 1,250,000,000 Less marketing cost (25 000) (25 000) Gross profit 1,499,975,000 1,249,975,000 Less operating expenses (500 000) (300 000) Operating income 1,499,475,000 1,249,675,000 Less dividends &...
2 Pages(500 words)Essay

Federal Income Tax deduction. Every personal expense is to be paid through tax and the business and trade gets an advantage of tax deduction. That’s how an income is generated. It should be kept in mind that the expense with the income to which it relates should be matched each year for example Baitannica v. Commissioner, 685 F.2d 212 (7th Cir. 1982). According to it the business expenses made, should be capitalized. The taxation can be reduced to half if one is having personal residence on business expense as well. Mr. Efran uses the residence to live and entertain clients, so the residence should be termed as office home. There might...
4 Pages(1000 words)Research Paper
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 Assignment on topic Personal Income Tax and Revenue Forecasting for FREE!

Contact Us