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is legally used to the tax payers advantage to reduce the amount of tax that is to be paid to the government but this is all done while staying within the boundaries of law, just the tax regime is manipulated in a manner so as to reduce the amount of tax.
The difference between evasion and avoidance as highlighted above is that evasion is something which is outside the boundaries of law and can be punished by law if the evidence for tax evasion is found out by the tax authorities of the country but tax avoidance is something which is done within the prescribed boundaries of the law and the tax regime and is not punishable by the law of the country, the difference can be slight but it could lead to severe consequences, for example in countries like the USA tax evasion is a serious matter and could lead to imprisonment if evidence is found of tax evasion against a company or a person.
The canons of taxation were developed by Adam Smith and are still widely regarded as the best parameter to judge the effectiveness of a tax regime in a country. It is a set of rules to judge whether the tax regime is a good one or not or if any changes need to be made to the tax regime, it also helps identify in which areas the changes have to be made.
2) The timing and the amount of the taxes that a payer has to make must be certain to him and they should be known well before the payment time so that gives him adequate time to calculate and make arrangements for the payments.
The canons of taxes have provided the guidelines for any government to follow and develop a fair and a convenient tax regime and tax collection and implement it with the point of view of being convenient to the tax
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After making loss of $40,000 in the fiscal year that ended on 31 March 2011, the business entity was able to record improvement profitability within the fiscal year ending 31 March 2012. From the projections and forecasts of sales and profitability, there is evidence that the firm is likely to pay more tax of either 40% or 50%.
This paper will discuss the statement "It is invariably the case that it is easier for a taxpayer to deduct expenses under the ITTOIA 2005 than under the ITEPA 2003" citing cases decided by court. Under ITEPA 2003, Schedule 12 to FA 2002 enhances the relief provided to companies in order to qualify revenue expenditure on research and development.
The paper attempts to understand how complex or simple it is to segregate between revenue and capital expenditures in the given business circumstances and whether applying annual capital allowance (AIA) to the various classes of assets under the head ‘plant and machinery’ needs a great deal of understanding of the various statutes, legislation and numerous cases that clarify the treatment of expenditure.
The amounts generated from taxations of various products or services are channeled to the national treasury then used to meet governmental or national expenses like paying the civil servants, establishing national projects, and procuring national defense facilities among others.
Higher spending champions have advocated for higher spending where position of promoting ear-marked taxes for specific, highly favoured services, as the outline budget plan of 2002 that was geared towards financing the cost of improvements in the highly valued NHS through increased National Insurance Contributions.
The primary objective of the group loss relief is to make a group of companies perform variety of activities so that it can achieve the tax treatment as if a single entity is performing all those activities.
Direct taxation occurs on charges of income from individuals or corporate, profits earned in business or other gains, these forms of taxation is deducted at the source or paid directly to the authorities.
Indirect taxes are charged on the goods
The dilemma of how to treat these two different persons in terms of taxation arises because in the small business sector some activities of self employed people may be economically similar to those of the
The businesses charge the normal standard rate for their goods and services, but they do remit whole of it to the HM Revenue and Customs. Instead, a business remits the revenue at a lower rate based on the type of business run and its sector. The
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