Chapter 2 Literature Review. 2.1 Fact On Hong Kong Tax

The tax system was created as a way for the government to raise revenue and provide services on the behalf of those who pay those taxes. The burden of the level of taxes paid by the citizen seems to continue to increase, but the purpose of tax exemptions, according to the Louisiana Budget Project, is to encourage certain activities-such as economic development, the hiring and training of the unemployed, and the development of low-income housing. The

In order to acquire this, tax policies should revolve around the classical theory behind the six characteristics of tax economic growth – 1) accumulating capital, 2) keeping governmental small, 3) opening the economy to trade and foreign investment, 4) respecting property rights/rule of law, 5) avoiding unnecessary government regulation in the private sector, and 6) investing in human capital. Accumulating capital comes into place because if taxes on earnings continue to rise then those taxes placed on the individual’s use of capital would increase as well which would trigger economic growth. A small government will help towards economic growth because the purpose of a tax system is usually to help provide income to the government. Therefore, if the government were small it would not divert some of its resources to private sectors. Opening the economy to trade and foreign investment is another way that can stem economic growth because it can stimulate tariffs and certain restrictions on trade and investments. Fourth, respecting property rights/rule of law can trigger economic growth because if one is restricted from power over taxation on property it can lead to growth. Another way it can lead to growth is from avoiding unnecessary government regulation in the private sector. This includes behavioral tax which is a tax imposed to shape a consumers behavioral decision. For example, placing a higher tax on tobacco and cigarettes can lead to improve one’s health and lifestyle. As we know, certain merchandise currently have higher taxes, i.e. cigarettes. Creating a higher tax on cigarettes and other commodities can lead to an incentive for fewer individuals to buy the product. Smoking causes many health related problems, like heart conditions, cancer, and ultimately death. There are hundreds of cases daily with these effects and it is highly likely that the

The government relies on collecting taxes in order to create revenue and function successfully. A decrease in taxes affects business and the government differently. A decrease in taxes is good for business and bad for the government. Many entitites rely on government funds in order to operate and function

Many services offered to the public are funded by theses taxes, which could not be administered successfully under some other arrangement. Taxes are defined as an obligatory subsidy to state income. These subsidies are imposed by the local, state, and federal governments on workers wages and business’s financial gains or added to the cost of some

In order for these governments to function there was a need for revenue to meet the expenses incurred by these governments. This need for revenue was met by levying taxes on individuals and businesses. It has always been a question to the population being taxed as to whether or not the government was doing a good job in assessing and managing the money it collected from taxes.

With an increase in collection of taxes, there is only growth and stimulation in accelerating social and economic development. With an improved and functioning non-corrupt tax administration the increase of money into the government budget can help to utilize other concerns in Azerbaijan.

Seeing HK Express is the only LCC in Hong Kong, it is predicted to get its new market for Hong Kong, including points in Myanmar, Laos, and the Pacific Islands. Right now, HK Express does nearly two-thirds of its flying to Japan, once a lucrative market for Cathay.

Government requires fund to take care of its citizens and provide development measures within its jurisdiction. So one of the sources is levy of taxes in direct and indirect form. Irrespective of Tom, Dick and Harry , one cannot avoid the taxes. Before getting into know about how you directly pay taxes, lets look how indirect tax goes from your pocket.

Emma’s annual salary of $150,000 per annum is assessed based on s6-5(1) ITAA97, which states her AI includes income according to ordinary income (OI) concept. In Scott v Commissioner of Taxation (1935), the court’s definition of income is reflective of what majority of public would consider income, such as salaries. Emma’s annual salary does constitute for OI and is thereby AI.

The Learning Outcomes in this course also help you to achieve some of the overall

Taxation is a scheme where one or more individual or a company or a group of companies or similar legal entities paying certain amount of money from income, product or service to the government to progress the country?s infrastructure. The intention of imposition of tax to the residents, either individual or company, by the administration is to help government financially so that government can pursue development task for the country. However, the amount of tax will always depend on the financial stability of a country. To make the taxation scheme more effective, the taxation system and its law necessity to be more effective. Depending on country?s circumstances, taxation system is also very to one jurisdiction to another. However, in this essay, the discussion will focus on the two jurisdictions namely Australia and Bangladesh and the discussion will concern specifically to the function of the two authority to collect tax from two jurisdiction, different number using in two different jurisdiction to identify taxpayer, sources of income tax between this two jurisdiction, accounting system among them, the other sources (apart from income tax) of tax, the system to bring action against the tax authority among the two jurisdiction and

Taxation systems are usually modeled in such a way that they take into consideration the social welfare of the citizens. The government and other policy makers have the responsibility of ensuring that the system takes into account the needs of the citizens. The bottom line is that taxation should foster equal distribution of resources. The rate of taxation is usually arrived at after several considerations have been made. The rates are not fixed as they depend on the various economic changes. The issue of how taxation should be distributed among the different economic classes is yet to be addressed.

Over time tax buracreacy of government will shrink because of the abolision of various indirect taxes as a result the net tax realized by government will increase because of the reduction in revenue expenditure like salaries provident fund etc…..

As Hong Kong is a small economy that is highly open to trade, it is also highly susceptible to global economic shocks. This is most recently evidenced by the GDP slowdown to 1.7% driven by negative trade developments and the inevitable drop in exports due to the global economic crisis. However, despite the weak global economy, Hong Kong's growth has rebounded due to the resilience of domestic demand along with low unemployment, most notably in low-skilled sectors. Additionally, beneficial fiscal policies providing counter-cyclical support to the economy have bolstered Hong Kong's economic health. Through such actions as waiving rates for properties, reducing public housing rents, increasing capital spending, and tax relief, Hong Kong's

Basic period (GR) individual can only use calendar yr basis but company is allowed to have any financial year end Gross income – refer to all taxable /chargeable receipts before deducting any expenses and this are separated under each sources of income stated in section 4(a) to 4(f) Adjusted income – ITA provided deduction rule which is Expenses must be ‘’deductible’’/’’allowable’’ to get deduction S33 of act put down the ‘’condition’’ an expenses has to fulfilled to get deduction S34 are special deduction given to business S39 are expenses which are specifically disallowed for deduction 6  