Tax assignment Essay example
Masters
Essay
Finance & Accounting
Pages 10 (2510 words)
Download 0
Introduction Historically, taxation in Britain was collected from serfs who paid rent to their landlords in return for protection (James, 2011). However, in the 1600s, a unified land law was passed which vested control and power to the Crown. Land and property taxes were collected from each landowner to support the government…

Introduction

They include Income Tax, Corporation Tax, Duties on goods and services, National Insurance Contribution, Value Added Tax and Fuel Duty. All these taxes have different laws and guiding principles. This paper examines the main rules that govern Income Tax and Corporation Tax. It outlines the main components of these taxes and the obligations of the taxpayer in fulfilling his obligations to HMRC. Question 1 The Scope & Core Rules of Income Tax and Corporation Tax Corporation Tax This tax is levied on the profits of businesses. Corporation tax is calculated on the annual income of a business. It was first introduced in the Finance Act 1965. Corporation tax in the UK is currently regulated by the Income & Corporation Tax (1988) and its subsequent amendments. According to Sections 6 and 11 of the Income & Corporation Tax Act (ICTA), corporation tax must be paid by three main groups of entities (McLaughlin, 2011): 1. UK resident companies. This include companies that are incorporated in the UK. Or a company that has its management based in the UK or has its board and directorship services rendered in the UK. 2. Non-resident companies in the UK carrying out trade through a permanent establishment and 3. Unincorporated bodies which are not partnerships that fall within the scope of the tax like societies and voluntary associations. ...
Download paper
Not exactly what you need?

Related papers

Tax Advice Assignment
Retaining GBP 30,000 per year in business Moving on to the first aspect, what are the major tax codes implied by the UK government. As with usual government practices across the globe, here too there is a (1) Corporation tax, (2) VAT, (3) PAYE (Pay As You Earn), (4) Self Assessment Tax, (5) Business rates tax, (6) Capital Gains Tax, (7) Stamp and Excise duties and (8) Industry specific tax. Before…
Assignment 3: Tax Credits
Tax credits are neutral and enable the Congress in making certain that specific taxpayers get tax credit as concerns marginal tax rates (Cordes, Ebel, & Gravelle, 2005). This purpose is still relevant for today’s taxpayer because the economy of the country has continued to deteriorate over the years. As such, individual and businesses still need protection from harsh economic times. Fairness of…
Assignment 3: Tax Reform
Reducing the Tax Bite The tax impact on dividends as well as interest sustained in many ways like owning stocks in an account that is tax free, or by holding stocks that increase in value with time and pay no dividends. Tax Issues it is being argued that the tax structure enforces an extremely high percentage which makes it extremely difficult for corporation in the United States of America to…
Assignment 4: Estate Tax
Looking at the figure of 2010 fiscal, the estate tax returns amounted to 0.02% of the total tax return with huge losses in tax revenue. Currently, IRS has modernized tax collection methods and has three computerized tax collection centers apart from ten other tax collection centers. The centers receive returns over mail and compile the returns at their end. The current level of interest and audit…
Multijurisdictional tax (Inbound taxation and Outbound taxation assignment)
IBM Corporation pays a regular quarterly dividend on the stock. Your previous research concluded that Joe T. is a nonresident alien of the US. 1. Is the income received US source income or foreign source income? What statute did you rely on for your conclusion(s)? Facts Joe T. is a non resident alien of the United States who has invested in 1,000 shares of common stock in IBM Corporation. IBM is…
Assignment 3: International Taxation and Foreign Tax Credits
This will in effect be a form of double taxation (Hines & Rice, 1994). A strategy for a US-Based taxpayer to repatriate earnings from the foreign markets and avoid or mitigate the U.S. tax impact on repatriation Lots of profits that most taxpayers in the U.S attribute to mitigate or avoid taxes should be taxed up to about 35% when they are repatriated. In this context, the client can repatriate…
assignment 1 (Mineral Resource Rent Tax (MRRT).
Introduction of RSPT would lead to reduction in the income tax but it was expected that such would not lead to the reduction in revenue, since the decrease in tax would encourage companies to undertake more projects which would lead to rise in the revenue. This increase in revenue would be utilized by the government of Australia for bringing about infrastructure development in the country. The…