Dear Ali, I am Marina, working as tax adviser. I am writing to you regardless your situation that you should be registered as self-employed for income tax and may be for VAT. In this letter I will describe the appropriate criteria which will help me to make a decision that you are trading or not. As well, I will give you an overview of the principles and accounting for VAT and explain the administration of the VAT. The HM Revenue & Customs (HMRC) use several test known as the Badges of Trade which helps to decide if person is trading or not. The main criteria’s are following: • Subject matter of the transaction Ali is buys a car with a view to selling it later in order to make a profit – this indicate that he is trading. In the case, …show more content…
In the case, Cape Brandy Syndicate v CIR 1921, where members of winery purchased Cape brandy and blend it with French brandy. They distilled too much and sold the surplus. They have been indicated as trading, even thought they were arguing that the transaction was a capital nature from the sale of an investment. • Reason for sale The acquisition seems to be planned with the definitive sale in mind - this indicates trading. In some cases, the presence of one badge is enough to indicate trading as it was in the case Rutledge v CIR mentioned above. • Motive Ali is intentionally buying cars at a cheap price to sell on at a good profit. He buys at auction only cars that need to be restored, and after car is in good condition he sells it again at auction – this indicates trading. In the case, Wisdom v Chamberlain 1969, a taxpayer purchased silver bullion to gain on the devaluation of the pound. Because the purchase was done in order to gain a profit therefore were was nature of trading. Conclusion. All six badges of trade point towards trading, The HMRC will assess the above as trading and Ali’s income from this activity is Trading Income. I would advise Ali to register as self-employed. Please read below an overview about VAT in order to find out if this applies to you. The principles of VAT A Taxable person is a person who has made taxable supplies and is registered for VAT. Should charge VAT on output and may reclaim
The moment Amir heard Baba explaining to Rahim Khan that Hassan stands up for himself and Amir, which leads him to conclude, “…there is something missing in that boy.” , Amir instantly behaves aggressively towards Hassan. This subconscious jealously causes Amir to betray Hassan in a variety of circumstances: the right of correct education, the act of allowing Hassan suffer, and the act of keeping quiet when Amir innated Hassan being a ‘thief’. Inevitably, Amir felt always challenged with his lack of confidence caused by Hassan being admired by Baba and being adroit, which lead to terrible decisions to a loop of
Issue: Should the Court rule as time-barred the Plaintiff’s claims which he makes under the Massachusetts ‘Blue Sky’ securities fraud statute and as lacking as a matter of law the Plaintiff’s claim on the Defendants’ unfair trade practices?
Even avoiding Hassan cannot erase the memory Amir is trying so hardly to forget. He is constantly followed by the guilt which immediately followed his actions. It is suffocating him, stealing the air from his body. Seeing Hassan magnifies the inescapable feeling that builds in his chest, and seeing him when he is not present angers Amir. Hassan is well aware of Amir’s betrayal, but he continues to be a faithful friend and an obedient servant and this frustrates and confuses Amir. He cannot understand why Hassan treats him well when he deserves the exact opposite. This irrational anger towards Hassan drives Amir to sabotage Hassan and his father’s place in Baba’s household. Amir hides money under Hassan’s bed in his hut for Baba to find later. Though Baba immediately forgives Hassan’s supposed crime of theft, he and his father, Ali, make the decision to leave the property and live on their
Amir, still feeling jealous of Hassan, had betrayed him and Ali by framing them for theft, forcing them to leave . Hassan had been ready to help Amir
All necessary factors need to be considered, also all the necessary facts need to be considered from cases need to be undertaken. So that a legal legitimate advice is provided to the client of the provisions of the Income Tax Assessment Act. As in this case the correct advice need to be provided to AUSGeo.
* People want fashionable, trendy, latest car design (Cluster 2) – Hi earners (who wants to buy car probably as a mode to show off they don’t care much about price)
One problem evident in their friendship is the fact that Hassan follows Amir without hesitation. In controlling relationships, one person normally leads while the other trails along (Zahiduzzamn). This is exactly what Amir has done with Hassan. By taking advantage of Hassan’s lower social standing, Amir is able to use his friend whenever it is convenient. He knows that Hassan will follow him without a second thought into any plans they have. When Ali reprimanded them after catching them shooting walnuts at the neighbor’s dog, Hassan mumbled and looked down at his feet, but never said that it was actually Amir’s plan (Hosseini 4). Hassan was willing to
The businesses among the process of production, collect the taxes from the products they sold and it is then given to the government. Therefore, it is a general consumption tax because the tax ultimately falls on the final consumer. VAT is also referred as an indirect tax because it is collected by the government from the seller (the businesses) and not the final consumer who pays the tax. This process of adding a tax in each stage of production differentiates itself from a sales tax (Anastakis, N.D.). Dimitry Anastakis, demonstrated this difference where he gives the following example, “if a sales tax of 10 percent is applied to a desk worth $1,000, then the end customer buying the desk from a desk retailer would pay $100 in sales tax and $1,000 to the desk retailer” (N.D.). Therefore, all others involved in each step of production of the desk would pay no tax only the consumer. Further, Anastakis states, “If a VAT of 10 percent is applied to the same desk, the end customer will pay $100 in VAT. If the desk builder has purchased wood and supplies for the desk totaling $400, he/she is thus assessing $600 of value that he/she has added in creating the desk. The desk builder would pay the 10 percent VAT of $40 on the supplies. When he/she remits payment of the VAT to the government, he/ she will remit the total VAT assessed on the end value of the desk ($100) minus what he/she has already paid ($40), to total $60 based on the added value” (N.D.).
1. 2. 3 Commonwealth v State of Tasmania (1983) 46 ALR 625 Federal and State powers Lee v Knapp [1967] 2 QB 442 “Stop after accident” – golden rule Smith v Hughes [1960] 2 All ER 859 “in the street” – mischief rule 4. Carlill v Carbolic Smoke Ball Co. [1893] 1 QB 256 Several contract law principles 5. Harvey v Facey [1893] AC 552 Supply of information is not an offer 6. Pharmaceutical Society of
HMRC – will require payment of corporation tax, Value added tax, income tax, and national insurance through the PAYE system.
I understand you are looking for some advice as to whether you are classed as running your own business and whether you should be registered for self-employed income tax and VAT. When it comes to working out whether a person is classed as trading or not the courts and HMRC will look a six main badges of trade. These badges are the subject matter, the period of ownership, the frequency or number of transactions, improvement or supplementary work, circumstances and motive.
When analysing this case, we need to come to the first point on whether the advertisement of the car was an offer or invitation to treat. Coming to a conclusion, it indicates that the advertisement was an offer because Jamal is willing to be open to get anyone to agree with the contract or it could also mean that he wants to receive postal acceptance when looking back at the actual case study, which clarifies, “The advertiser was Jamal giving a contract address.” This case is similar to when relating it back to Fisher V Bell
It was this mergence that saw Lord Mansfield becoming known as ‘the founder of commercial law within this country [United Kingdom]’, due to his ability to harmonise ‘commercial custom and the common law ...with an almost complete understanding of the commercial community, and the fundamental principles of the old law and that that marriage of idea proved acceptable to both merchants and lawyers.’ At this stage, the principle of caveat emptor was utilised as a guiding principle for the courts, devised namely in response to the manner in which business at this time was undertaken. This was in response to the manner in which business was conducted, namely in small fairs with small quantities of goods being bought and sold, buyers were afforded the opportunity to inspect the goods and use their own knowledge and skill to determine whether or not to purchase them. As such, it was the buyer’s responsibility to ensure that due diligence was observed at the time of purchase. Failing to inspect the goods resulted in the cost would be lost if the goods purchased were not what was wanted. In this context protection for buyers was to a certain extent non-existent. The only way in which a seller could be held liable was in circumstances where a written warranty was issued or if the case was considered to be one of false affirmation.
Franklin Roosevelt Indicated that "Expenses are the levy which we pay for the benefits of enrolment in a sorted out society". Since the last two decades hypothetical writing on tariff has prospered, yet charge hypothesis keeps on suffering from critical restrictions. Maybe the most genuine inadequacy is a dichotomy in suppositions on what propels open and private choices. (Walter Hettich And Stanley L. Winer, p. 701). Open chiefs are expected in a significant part of the assessment writing to pick and execute strategies as per general social criteria, for example, productivity and value. The clashing treatment of private and open decisions confines the capacity of financial specialists to comprehend the operation of real duty frameworks and to clarify why they have the qualities and structure that we usually watch. (Walter Hettich And Stanley L. Winer, p. 701).
At the end of his career, the tax author remembered: “In 1952-1953 I had the occasion to conceive a reform regarding the turnover taxation, that I named VAT. Proposed in the Parliament by the Finance Minister, it was rejected. Despite the fact that I wasn’t the adept of the production taxation, because it stifled finally the investments, I defended until the end my idea, and, when Edgar Faure became Finance Minister, he proposed my tax be introduced in the Finance Law for 1954. After many political negotiations, VAT passed through the Parliament and was voted, but not without adventures !”