Avoiding Taxes Assignment example
Undergraduate
Assignment
Finance & Accounting
Pages 3 (753 words)
Download 1
Avoiding Taxes Individuals residing in the U.S. are obliged to pay their income taxes (Hoffman, Maloney, Raabe, & Young, 2013). The government uses the income tax to obtain funds for the building of public infrastructure and services. However, not all taxpayers are in favor of paying income taxes…

Introduction

Renouncing citizenship The determination of some citizens to avoid the payment of income taxes has led them to the idea renouncing their US citizenship. As per s 349(a) (5) of the Immigration and Nationality Act (INA) (8 U.S.C. 1481(a) (5)), a US citizen is given the right to voluntarily renounce US citizenship. Expatriated citizens are bound to adhere to the expatriation tax provisions depending on their net worth. Since the government has found a way to oblige US citizens to pay taxes even when they are overseas, giving up US citizenship has become the last resort for some, who view tax liabilities as burdensome and inequitable. The aim of renunciation is to be exempted from tax liabilities, not only when residing in the country, but also when considering going out of the country for whatever personal reasons. Once a U.S. citizenship is relinquished, the income tax duties of an individual diminish. 2. Establishing dual citizenship The US government is not in full of dual citizenship as it may bring confusion on the part of a dual-national U.S citizen. Nevertheless, individuals, who have the chance to acquire dual citizenship, make use of this opportunity to lessen their tax obligations. ...
Download paper
Not exactly what you need?

Related papers

Inheritance Taxes
Is it a tax on a deceased person’s estate willed to his/her heirs or a tax on the unavoidable but mostly undesirable act of dying? Is it an income tax or a wealth tax or both? The initial emotional reaction to the inheritance tax is usually distaste probably because, as the old joke says, it includes the two most inevitable and unpleasant events in life, death and taxes. However, framing it as a…
The rights-based approach and carbon taxes in Australia
Its adoption by the United Nations as the framework by which its pursues its interventions is significant, in that it heralds a shift from a needs-based approach, i.e., looking at what people need, to looking at what people have an absolute inalienable right to, by virtue of being human. (Alston, 2003: 7). A rights-based approach imposes a duty on the State to uphold this right as a function of…
Tax Avoidance OR International Accounting Standards
Thus, they maintain a liberal tax system for businesses and maintain a more stricter tax system for individuals. Due to this, most businesses have many options of manipulating tax law to their favour in order to pay less taxes. In principle, taxes are paid to promote social justice and assist the government and corporate sector to meet its objectives and needs. If an individual or business entity…
Financial Transaction Taxes
Research report by Economic & Financial Policies Directorate, Ministry for EU Affairs, Turkey (Economic & Financial Policies Directorate, July 2012. FinansalIslem Vergilerive Avrupa BirligiUygulamas?. Ankara, Turkey) Useful information about taxation. Statistical references to specific issues. Research report by Ernst & Young LLP (Tax Policy Services, April 2012. Financial Transaction Tax, Which…
Major Arguments for and against Cutting Taxes to Promote Economic Development
Conversely, do state and local public services undermine growth? A review of the available data strongly suggests that the answer to both of these questions is no. And while state and local tax cuts may in theory stimulate economic activity, in practice they are unlikely to do so.” (2) In this paper, therefore, we are going to the major arguments for and against tax cuts and incentives as far as…
International Taxation - Foreign Persons Trade/ Business and U.S. - Sourced Income
The rules and the tax implication to the foreign investors who invest in US companies will be reviewed with rational judgment throughout this research study. Research Objective The objective of this research is to identify the rules related to investment by foreign persons in the US companies and assess the tax implications for the foreign investors in investing in US companies. Literature Review…
Avoiding Taxes
The US tax returns process requires the US citizens to pay tax on the incomes they earn all over the world. The US citizens are required to pay income taxes on their world-wide income irrespective of the fact whether they visited the US land in recent times or in the recent decades. This led to the renouncing of US citizenship by the US people which has increased from 231 in 2008 to 1781 in 2011.…