Essays on Corporate Tax

Summary

The principal intention of the article is to find out the effect of state corporate income tax rate cuts on job creation. The author's conducted an experiment trying to establish whether decreasing the amounts of corporate tax helped to spur economic growth which in turn resulted in the creation of employment. The authors of the article analyzed jobs created in economies where the corporate tax was reduced and economies where the taxes remained the same. The main conclusion was that reducing the amount of corporate tax paid enabled firms to hire more workers, which in turn resulted in more ...

Galaxy International operates in a niche market; this is because skiing is only possible in very specific areas, and only a limited number of the population skis regularly anyway. Despite this, the company has performed outstandingly well to be achieving the level of sales with a small staff. This being said, Galaxy International needs to raise capital quickly and in an efficient way to successfully continue expanding to fully capture its full market size. By offering a unique product that is flexible yet tough, Jeremy is likely to continue to increase the volume of his sales and therefore the ...

Federal Taxation Paper Analysis

Section one – Summary of Article one: Taxation has been an important topic for researchers and policy makers as well and has been an important source of revenue for the government. In multiple courtiers, it has been a source of economic growth (Palomba, 2004). The aim of this assignment is to determine the two tax related articles and present the summary of those articles. This section presents the summary of the article “Effects of Income Tax Changes on Economic Growth” written by William H. Gale and Andrew A. Samwick in 2014. The paper analyzes the ways in which the imposition ...

Government budget provides the projections of revenues to be received and expenses to be incurred by the government in a given financial year. The main sources of government revenue are levies, taxes, returns of government projects and fines. In many cases, the government budget is at a deficit because the amount of expenditure to be incurred is more that revenue projected revenue. Thus, the government has an option of financing the deficit through borrowing or applying austerity measures to cut down its projected spending. The government can also apply austerity measures when debt level reaches unmanageable high level. Everyone ...

INVESTMENTS

Economic overview The economy of Jamaica greatly relies on services that accounts for over 70 percent of its GDP. The Nation continues to earn most of the foreign exchange from remittances, tourism and alumina/bauxite. Both tourism and remittances accounts for 30 percent each, whereas alumina/bauxite exports contribute roughly 5 percent of the GDP. The alumina/bauxite sector was the greatly affected by global downturn whereas the remittance flow and tourism industry remained resilient. The economy encounters several challenges to its growth including soaring corruption and crimes, huge-scale underemployment and unemployment as well as a debt-to-the-GDP ratio that is about 130 ...

This report analyses the most recent financial reports of two companies; Sino Gas and Energy of Australia (2014), and Solar World of Germany (2015). Sino Gas and Energy reported total provisions of $97,166 that constituted 0.09% of the total assets. Solar World reported total provisions of k€ 49,466 that constituted 5.69% of the total assets. The provisions for the two companies are listed below in descending order based on their book values:

Sino Gas and Energy $

Other provisions 60,837 Employee entitlements 36,329 Total 97,166 Solar world k€ Warranties 24,653 Pensions 10,704 Litigation risks 9,190 Other ...

Abstract

This paper gives an insightful preview of the Panama's economy. It analyzes key data from the current major economic indicators to comprehend the state or nature of Panam. The analyzes espouse data and statistics drawn from the Panamanian Bureau of Statistics and Economic portfolios. It analyzes both the endogenous, exogenous economic factors, as well as their impact on the Panamanian economy. One of the most conspicuous endogenous factors is the Panama’s unsustainable development growth models. Its economic growth mostly focuses on the economic indicators while ignoring critical and pressing aspects such as social as well as environmental problems. ...

In the recent job report there is some encouraging news. The unemployment rate is at all-time low in last 5 years. The economy created more than 165000 jobs and 26 states showed positive job increase compared to only 7 which showed negative trend. This is the biggest economic recession since the great depression and even after 5 years the economy is still in the path to recovery and there is little hope of the condition of the economy being anywhere near to the pre-recession level before 2015.

There are several reasons why the economy is not bouncing back ...

Over the last several decades, members of the investment community at large have shifted attentions to the emerging markets of the east. As centers of growth blossomed in Asia, major businesses with traditional centers in London and New York began to gravitate eastward, establishing monetary as well as physical presences in the Asia. This development has led to the emergence of Singapore as a business center from which Asian and Western operators have begun to center their business interests.

The status of Singapore as a hub of Asian and international business is not surprising. Singapore was long a British Crown Colony ...

Introduction

British Telecom and Vodafone are two giants in the telecom industry. After the financial burst of 2008 in the US Economy and the financial troubles in Europe, the telecom sector got badly impacted. In fact the whole sector instead of growing has slid into a negative growth which has affected almost all the telecom companies. British Telecom and Vodafone are trying to diversify their portfolios by making efforts to come up with innovative product packages to fuel growth. So far the initiatives have not shown much improvement in the results. In such conditions it is becoming very difficult for those ...

Tax ramifications refer to the tax consequences of an action. It is the impact of tax on undertaking certain transactions or in a business situation. Business nexus refers to the amount and degree of operations a business carries out before the state imposes a tax on the amount of income it receives. Once the criterion has been established, the owner of the business is responsible for collecting and remitting the amount of tax to the relevant tax authority in the relevant country. Therefore, business nexus tax ramification is the tax consequences of the actions or activities undertaken by business and the extent ...

STARBUCKS REPUTATION

In the pursuit of their objectives organizations become so uncompromising that they only realize the importance of goodwill once it is lost. The same is the case with Starbucks. First, it took advantage of the loopholes in the accounting standards and taxation laws to minimize corporate tax liability and when caught doing so they actually admitted it by announcing that they would pay more corporation tax in 2013-2014, regardless of whether the company is profitable or not. (Armistead, 2012)

The company has not been successful in managing its reputation after the tax avoidance scandal. In fact, it is among ...

Introduction

The economic activities of companies operating domestically cannot but prove beneficial to the home county. Manipulating large working capital, often having the high rate of liquidity, and generating significant revenue, large ventures naturally are great producers. As such, they contribute to the gross domestic product of a country increasing the overall output picture, as may be seen in the case of Canada and the USA home to large and successful multinational and domestic companies. Besides the GDP, a litmus paper of economic growth, the coefficient of value of large companies is measurable through different economic development indicators. Large companies do pay ...

Budgeting is a crucial aspect of any institution or government’s operations with an aim of enhancing goals and objectives’ achievement in line with specific environment and needs. Thus, budgeting is greatly guided by policies that define the suitable actions in line with set goals and objectives either in response to changing environment or as a way of fostering opportunities’ utilization. In that respect, governments have budgeting planning that is specific to their constituents’ needs and that defines the objective of this analysis which seeks to demonstrate the budgeting process for a State in view of its status and environment. To achieve ...

Introduction The United States is facing an increase in economic competition, in the new global economy. It is in the State of Michigan that fluctuations are intensely felt and thus affecting the living standards of the residents. The residents are experiencing an unprecedented period of job loss and economic upheaval, with the end nowhere in sight. As manufacturing industries decline and manufacturing jobs disappear, it is becoming increasingly clear that, for the estate and the country to thrive, individuals in Michigan must cultivate the knowledge-driven, entrepreneurial sectors of their economy, particularly so-called "high technology." Michigan’s has developed ...

The article’s central ethical issue revolves around debates on whether or not company inversions can be termed unethical. Inversion depicts the act of one company carrying out business dealings with other countries in a bid to take advantage of possible low tax rates. Through inversion, a company merges itself with business already existing in low tax rate countries and records high profits as the government takes a small percentage of the same. The arguments on the taxation of multinational companies emerge in the form of how companies decide on the amount of tax for each country. First, countries impose corporate ...

This is an important source of federal revenue all over the world and a major consideration in planning business activities. The USA imposes one of the highest federal corporate income taxes in the globe. This aspect is through enticement of corporations to outsource where there are more favorable tax rates (Abraham, Howard, Richard, 5). The article focuses on the economic incentives created by taxation of the corporate and further review available evidence of their behavioral impact.

History of Corporate Taxation

The 1894 Revenue Act established the principles of taxing available corporations in a way that is separate from their owners. The Federal tax on the ...

Executive Summary

COSO, the Committee of Sponsoring Organizations, has a mission to offer thought leadership and guidance by developing comprehensive guidance and frameworks on risk management for risks, fraud deterrence and internal control. This program is primarily designed to enhance organizational governance and performance as well as reducing the level of fraudulent actions and claims in organizations. This program has an aim and vision to be a renowned thought leader all over the world in all marketplaces. COSO, by design, is a voluntary organization in the private sector that is dedicated to the improvement of quality in financial reporting. It attains this through effective ...

Executive Summary

Evaluating investments risks’ and potential return is crucial for investors’ as a way of establishing the expected return for their portfolios. In that respect, the analysis has used the Darden Case on American Greetings and the analysis on the Company as an investment has been done with use of DCF model that uses the present value of the expected future cash-flows. In addition, the analysis has been done using the future cash-flows for the years 2012 to 2015. The company’s WACC has been established to be 0.11% given the risk-free rate of 0.05% and the Market rate of ...

(Student’s Full Name)

Abstract

This paper intends to show the tax avoidance strategies which can be used by a tax lawyer or an accountant to reduce a multinational technology company’s taxes. Furthermore, this paper intends to show the difference between tax evasion and tax avoidance, as defined by specific scholarly articles. The strategies which will be mentioned include: the “Double Irish,” the “Dutch Sandwich,” and the “Check-the Box Rule”. Each strategy will be defined and examples of companies which have used such strategies will be given. This paper, which is essentially a tax plan which will instruct a multinational technology corporation (MNC) ...

Question 1: Is it the right time to think about expansion? Why?

The Jabwood International Company should think about expanding its functions into other foreign countries now due to the present circumstances that have been experienced of late. The company relies mostly on the sale of TANITA wood products of which it has exclusive rights to distribute the products to the Middle East companies. The exclusivity however is about to be jeopardized with the low returns that has been experienced. The trading company in Russia wishes to remove the exclusive rights of Jabwood International and allow other trading companies from different countries the chance to distribute the products. The Jabwood International ...

Introduction

The present taxation system in Brazil was established by the 1988 Brazilian constitution that gave power to the State, Municipal, and Federal Governments to collect the taxes. Because of the numerous regulations that each of the three governments enacted, the taxation system in Brazil is very complex, and this leads to an environment where the authorities require the taxpayers to comply with various obligations comprising tax collection as well as reporting. The tax regulations and laws in Brazil are among the most confusing and hard to comply with throughout the world. The many rules that the three levels of ...

Globalization has led to firms becoming multinationals since additional international markets are opening up and, therefore, economies are becoming integrated. With the increase in trade, migration and finance there are expected to be a rise in the level of global domestic Product. The Organization for Economic Co-operation and Development (OECD) was established to stimulate trade between countries and also ensure that there is economic progress. OECD has thirty-four member states currently including the U.S, France, and U.K among others (OECD, 2005). These are some of the best economies in the world hence OECD hence this business plays a major role in ...

Capital structure

Capital structure is the mix of long term borrowing, short term borrowing, common equity and preferred equity that a company uses to finance its operations and its growth. This means that a company’s capitals structure is the combination of common equity, preferred equity and borrowing that has been employed to finance the assets, growth and operations of the company.

The weighted average cost of capital is calculated using the following formulae

WACC = E/V*Re + D/V*Rd*(1-Tc) Where: Re is the cost of equity, Rd is the cost of debt, E = market value of the firm's equity, D = market value of the firm's debt, V = E + D, E/V = percentage of financing ...

BUSINESS ECONOMICS: THE UK ECONOMY

- Introduction3 - Reasons for Economic Downturn in 2008/094 a). Financial Crisis4 b). Business Cycle4 c). Government Policy before Crisis5 - Analysis of the Effects of the Downturn6 a). Microeconomic Effects6 1). Effects of Households6 2). Effects on Businesses6 b). Macroeconomic Effects7 1). Effect on Unemployment7 2). Effect on GDP and Inflation7 3). Effect on Share Prices and Company Profits8 - Government Policies Aimed at Recovery8 a). Fiscal Policy8 b). Monetary Policy9 c). Austerity9 - Actions/Steps Taken by the Government9 - Expectations of the Government Actions10 ...

Question 1

What are the three major categories of revenues for the federal government? The different kinds of taxes imposed by the federal government allow it to raise trillions of dollars in tax revenues (Tax Policy Center, 2013). The trillion in dollar revenues raised by the federal government come from three major sources; individual income taxes, payroll taxes and corporate income taxes. Major sources of revenue accounts for 46 percent from individual income taxes, 34 percent from payroll taxes and 11 percent corporate income taxes (National Priorities, 2013a).

The three categories of revenues for the federal government are as follows;

- Individual Taxes Individual taxes are the most prominent category of ...

Substance Manufacturers,

Sub: Business Environment in Mexico I have researched thoroughly about the Mexican economy and its business environment; all the findings are mentioned in the document including the total SWOT analysis. I have also highlighted current FDI norms, labour and tax reforms of the economy. Crime is one of the concern in the economy, other than that Mexico provides good investment opportunity.

Please go through the report to have complete view about the business environment of the Mexican economy.

Regards, Introduction Proximity to US and strong commercial growth prospects has made Mexico as one of the most highlighted business destination compared to the other countries. This has made many companies to invest in the country. ...

Tax policies and rate play a fundamental role in determining the economic and business activities of a country. The policies and rate adopted by the countries determine the investment decision. Various countries have adopted different policies and rate. The following table shows different countries and their tax policies and their rate. The table above shows corporate tax and VAT tax adopted by different countries. For any business profitability, the tax policy and rates adopted by a country serves as a key factor. The corporation tax rate, which is subjected to business or corporate income, is used to evaluate the corporation performance. This ...

The current economic problems facing United States requires formation of policies that are meant to improve the economic situations in this region. Each proposed tax reform should be analyzed accordingly to ensure that it affects the economy of United States positively. Each tax reform should be such that it supports the aims of taxation. It should be such that it facilitates fair distribution of resources and allocates resources accordingly. One of the areas where tax reforms have been proposed is in corporate tax reforms. The proposal is that the corporate tax should be lowered from 35 percent to 25 ...

Analysis of US Corporate Income Tax Reform

A tax system should meet its objective of raising revenue for a government in a manner that meets the principles of equity, efficiency as well as complexity. Consequently, the essence of these principles is to ensure that any tax policy promotes economic growth as well as seeking to improve individuals’ social welfare. However, US corporate tax rate has been one of the highest even in comparison with the other OECD countries hence a need to reform it to meet the above principles as well as serve its key purpose of raising revenue. In this respect, this analysis seeks to analyze and present ...

The need for increased competitiveness of Canadian firms is more imperative now as the federal and local governments report surpluses. There is need to ensure that the products of Canadian firms are competitive in the future against those from other regions which are undertaking aggressive implementation of policies to improve their manufacturing capabilities and technological advancement, of note being the United States. This need for competitiveness in Canada is mainly hindered by two factors, poor tax policies of in both federal and local government jurisdictions and the poor organization of transport logistics in the country. These two factors, if ...

The Obama Economic Platforms

The incumbent US president is aiming for his second term as president in this year's United States presidential elections. One of the hot topics during debates are about economic plans that would promise a better economic future for the American people. Obama's economic plan focuses on generating 1.1 million jobs by 2013 to be followed by another wave of 280,000 job opportunities in 2014 (Khimm). Because of the fragile economy and the torpid job market, the re-elections are facing threats in his chances for a second term. Therefore, as a back up plan, Obama will extend another year of tax cuts ...

New Tax Havens for US Multinationals

The US tax code encourages multinational corporations to move their productive operations out of the country. Findings from the video indicate that the reason to shift operations to international destinations is in part due to the need to find favorable tax rates and as well, due to the desire to satisfy the aspirations of shareholders. Despite the attempts by the Obama Administration to clamp down international tax evasion, many a multinational corporation is unwilling to submit taxes earned on foreign profits. The international tax rates are competitive enough to lure US multinationals to shift their operational activities to low-tax countries. ...

Question 5

International Tax Systems: Approaches to Transfer Pricing Globalization is the new trend as companies are increasingly expanding beyond their domestic borders. Globalization is motivated by the need to seek new markets, diversify operations internationally, take advantage of differing tax laws among a myriad of other reasons. In order to take advantage of differing tax laws, multinational companies use transfer pricing. This paper discusses transfer pricing and the various approaches to transfer pricing. This paper will also discuss the recent developments in transfer pricing. Transfer pricing refers to the determination of prices for transfer of goods between subsidiaries both ...

Abstract

Economics is an academic discipline that deals with scarce resource planning. Macroeconomic and microeconomics are two fields of economics, dealing with decision making at aggregate level in the former and individual level in the latter. Microeconomics discusses individual preferences and macroeconomics considers aggregate scenarios. An analysis of self-decisions reveals that, in spite of the difference, these two fields are closely linked and interconnected. The microeconomic decisions taken by individuals impact macroeconomic variables, and macroeconomic phenomena impact individual decisions significantly.

Keywords: Macroeconomics, microeconomics, economics, consumer preference, corporate tax reduction

Introduction

Adam Smith stated that economics deals with the nature and causes ...

Introduction

The bank of Queensland was instituted in 1874 as the first permanent building society in Queensland, Australia. Initially, it was being operated as Brisbane Permanent Benefit Building and Investment Society. This society was later incorporated in 1887 and then got amalgamated with the City and Suburban Building Society in 1921. Later on in 1931, it was again amalgamated with Queensland Deposit Bank. It received a license to operate as a trading bank in 1942. The bank computerized its operations in 1970 and then underwent a series of transformations that included changing its name to bank of Queensland. The bank was first listed ...