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Taxation and Housing Issues - Essay Example
Author : justice85
Finance & Accounting
Pages 8 (2008 words)
Taxation and Housing Issues Introduction Taxation and housing are two crucial areas that reflect the economic performance of a country. Generally, countries with stronger economic background levy comparatively lower tax rates on sales, income, and other transactions…
Hence, in order to understand the economic feasibility of a particular country, a close analysis of the prevailing issues on taxation and housing is necessary. This paper will critically analyze various issues pertaining to taxation and housing in the United Kingdom, United States, and United Arab Emirates. Issues relating to taxation and housing in the UK The economic spectrum of the United Kingdom indicates that taxation issues have impeded the faster growth of the country. UK holding companies have been heavily suffering from tax issues in the recent years. Corporation tax deductions are available to a UK holding company on the interest payment to investors subject to anti-avoidance policies. More details on these features can be found at . The anti-avoidance provisions including transfer pricing are increasingly complex in nature and therefore the country’s holding companies are not benefited from tax reductions. In addition, a UK holding company does not get any tax deduction benefit while paying dividends to investors. Similarly, the tax deductions allowed to the UK’s small scale enterprises for boosting entrepreneurship actually result in a deadweight cost. This situation adversely affects the overall growth of the economy. ...