Got a tricky question? Receive an answer from students like you! Try us!

Corporate Taxation - Essay Example

Only on StudentShare
High school
Essay
Finance & Accounting
Pages 5 (1255 words)

Summary

Name Instructor Course Date Corporate Taxation Introduction A corporation is defined as a legal entity that is distinct. This definition enables a corporation to do business, open and run bank accounts, and own property using its legally recognized name. The general affairs and weighty business decisions of a corporation are managed and sighted by a board of directors, which consists of individuals who are nominated or elected by the majority of shareholders of the company…

Extract of sample
Corporate Taxation

This fact protects a corporation’s shareholders from legal action or liability because of the identity of a corporation as a legal entity, for example, if a company defaults or slips into bankruptcy, the debtors will go after the company’s assets in order to recover their debt. If the company’s assets are not enough to cover the debt, legally the debtors cannot go after the directors, officers, or shareholders personal assets in order to recover their debts. This is the primary advantage of a corporation. C and S Corporations There are many types of corporations, but in terms of taxation, there are two types of corporations. The two types refer to the special types of tax categories or elections recognized by the internal revenue authority. The two types of corporations are C and S corporations, and they have different advantages and disadvantages, and formulation processes. The formulation process of both types of corporations is similar, and it starts with filing at the state level before proceeding to the IRS. ...
Download paper
Not exactly what you need?

Related Essays

Taxation
50,760.34 Salary - Tax - NIC Tax brackets Income 10% (starting rate for savings only) 0 - ?2,560 20% for basic rate 0 - ?35,000 40% for higher rate ?35,001 - ?150,000 50% for additional rate Over ?150,000 (HM revenue and Customs 480 (2011) The liability of income tax payable from the above computation is ?25,718.3. A deduction of personal allowance of 7,475 is made in the year 2011/2012 (Great Britain: Parliament: House of Commons: Treasury Committee, 2011,103). This figure was increased by ?1000 (Budget, 2011, pp.1).The National insurance Contributions (NICs) are calculated under the annual…
8 pages (2008 words)
Taxation
If anyone has an income below the income tax personal allowance, he is not supposed to pay any tax however if the earnings of an individual is above the tax allowance then he is supposed to pay according to his earnings above this level. There are different tax bands and every tax band has a different tax rate (Income Tax Rates and Allowances). Corporation tax Corporation tax refers to the tax on the profits made by the organizations in United Kingdom along with profits made by permanent establishments of companies owned by non-UK residents as well as associations trading in European Union.…
10 pages (2510 words)
Taxation Law Accounting Essay
The $5,000 received after the trading period qualify as income for the period ended 30 June 2010. This is in accordance with accruals accounting method; income is recognized when it is earned. All this is in accordance and requirements of section 6-5. The trading stock for Philip’s business has to be evaluated according to the general rule of accounting for stock-S70-35(1). The difference between the opening and closing stock is added to assessable income because the closing stock exceeds opening stock-S70-35(2). The allowable deductions (division 8) include the $2,000 which was an expense…
4 pages (1004 words)
Essay on Taxation and Economics
Direct taxes cannot be avoided. Anything that is earned will have to be given to the national exchequer. Indirect taxation can be avoided by reducing the spending. Indirect taxation leads to substitution effects. Since people know that their effort will earn less than the actual amount they were getting before the tax is levied, they will think that leisure has become cheaper for them now. For example, if a consumer was earning $10 and no tax was being levied on his salary, then any leisure hour was costing him $10. Now after a 10% tax is levied on his salary, each leisure hour is costing him…
8 pages (2008 words)
International Taxation Essay
Essentially, this means that a multinational company with hundreds of companies worldwide is not regarded as a single economic entity but rather as an amalgam of independent tax paying companies1. There has been intense debate on whether it would be wise for the international taxation to be changed to allow for the holding company to pay the group’s consolidated tax. The proponents of this argument state that it would be much more convenient and efficient for consolidated tax returns as applicable to multinational companies. Anti-avoidance legislation Tax avoidance can be defined as the…
8 pages (2008 words)
Taxation
Back in 2002, the government introduced new reforms on company cars. The company car tax reform encourages people to buy of choose cars with lower levels of carbon dioxide (CO2) emissions. Purposely, the reforms are aimed at tackling changes in climate and greenhouse gas emissions. Also, it also encourages manufacturers to introduce greener cars. As a result, businesses should evaluate their current fleet arrangements and especially those that emit carbon in order to minimize costs. The Government also aims at increasing its revenue (Melville 2012). It has already estimated additional…
5 pages (1255 words)
Taxation
These two systems worked independently in the past and the tax authorities maintained separate tax systems for income tax and national insurance contributions. Income tax was taxed annually in a progressive manner on individuals and corporate bodies whereby low income earners were taxed lower than high income earners (UK Government, 2012). The tax rates increased with increase in incomes of individuals. On the other hand, benefits are payments to individuals by the state. They are paid to individuals through the bank, credit union account or building societies. If one does not have any of…
8 pages (2008 words)