Munaf Usmani Academia Research April 04, 2011 The Foreign Account Tax Compliance Act Executive Summary The Foreign Account Tax Compliance Act is an austerity measure to regenerate employment within the US economy. However, these additional disclosures and subsequent penalties can become very cumbersome for the taxpayers with foreign investments etc…
It is applicable to individual persons as well as corporate entities. The disclosure procedure includes the attachment of an additional document alongside the individual’s income tax return form. Failure to disclose the proper amount or the exclusion of any particular asset from the reporting can result in stringent fines. The minimum penalty that is applicable is $10,000. After the initial penalty is charged, there is a grace period of 90 days before incremental charges start to accrue. These charges apply at a rate of $10,000 for every 30 days gone by without the proper rectification. This however is applicable after the 90 days grace period is over. Additional penalties have been declared for gross negligence amounting to 40% of the amount misrepresented or omitted without criminal intent. This is a spike of 100%, moving from 20% of the gross to 40% of the gross. A key note which is beneficial for the IRS and not so beneficial for the tax payer is that the statute of limitations on performing audits of taxpayers has been extended two fold to 6 years. Previously, the IRS authorities only had the right to investigate the revenue generation of people and companies up to a maximum period of 3 years prior. ...
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The paper further notes that currency unification should not be seen as the only component of the much wider integration efforts. Additionally, the region has to do away with distortions that bar inter-regional trade and investments for a successful economic integration to occur.
The price momentums are studied from the years 1976 to 2010 and the results calculated using econometric methods. The rest of the paper is as follows. First, it provides a summary of the article by Menkhoff et al. Next section is an appraisal and critique of this article followed by a conclusion.
This new development of the single currency follow in five steps: (1) a stronger role for the European Council; (2) a common acceptance within the monetary Community of the goals of each national monetary policy; (3) a coordinated intervention by the European Central Banks to defend a country under pressure by speculative capital movements, either by loans or by sharing the burden of interest rates; (4) more stringent common decisions on the distribution of safety clauses for the member states; (5) a common standing by the EC in its international negotiations, particularly with the United States and Japan.
government debt (Zeng, Nielsen 2007). Less dramatic, but also worrisome, are declines against the currencies in major industrialized nations such as Australia, China, and Japan. The world currently undermines the importance of the dollar depreciation over the other currencies.
John Sloman (1999)
Individuals participate in the foreign exchange market for a number of reasons. On the demand side, one principle desire for foreign currency is to purchase goods and services from another country or to send a gift or investment income payments abroad.
The ratification of the Maastricht treaty in November of 1993 was responsible for the creation of the European Monetary Union or EMU and adopted the Euro as their common currency (European commission, n.d.).
This literature review would examine the theoretical and conceptual constructs of currency hedging strategies and their relevance or irrelevance to all firms in a highly competitive and risk prone money market.
In the first instance currency hedging practices have their relative individual significance vis--vis non-currency investment opportunities and net returns on such investment vehicles (Zarin, & Zimmerman, 2006).
Separate accounting records are kept for each separate company, but not for the consolidated entity (Copeland, 2008). To determine the consolidated amounts, the amounts for the individual affiliated companies are added together. Elimination entries are made to remove the effects of inter-company transactions.
The importance of flexibility in the exchange rate for easier correction of imbalances current account has long been at the heart of international debate. Before the financial crisis World, these debates were focused on global imbalances and the role of exchange rate policies several major Asian and oil-exporting countries with external surpluses.
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