Principles of Taxation Law Essay

Employee’s remuneration must be reported on the annual return for each employee who worked in Nunavut even if their remuneration was not subject to the payroll

3) What is the maximum amount that Home Alarm could spend on customer and salesperson incentives to convert a residential customer to auto-pay?

For cash compensation package, tax consideration also decreases the value. Cash bonus is taxed at ordinary tax rate, so Ms. Jameson receive $5000 x (1-0.28) = $3,600 today, and $4,450.82[5] at the next five years. However, there is a risk that Ms. Jameson’s marginal tax rate is changed. For the worst case, tax rate might reach as high as 31%, and this results in the value of $4,265.37[6] at the end of the fifth year.

Georgia Braxton has a take-home pay of $600 a week. With disability insurance coverage that replaced 70 percent of her earnings, what amount would she receive per week after the waiting period?

* However, if these payments are unreasonable, then distribution is considered a ‘constructive dividend’ and is no longer deductible

must pay a fee to the employment agency of 22% of his first four weeks’ pay. How

HMRC, EIM01140 : Employment income: Flexible Benefit Plans.[internet]. Available at: http://www.hmrc.gov.uk/manuals/eimanual/EIM01140.htm [last accessed 23rd November 2010]

Joshua borrowed $500 for one year and paid $25 in interest. The bank charged him an $8 service charge. What is the

Parent Corporation owns 85% of the common stock and 100% of the preferred stock of Subsidiary Corporation. The common stock and preferred stock have adjusted bases of $500,000 and $200,000, respectively, to Parent. Subsidiary adopts a plan of liquidation on July 3 of the current year, when its assets have a $1 million FMV. Liabilities on that date amount to $850,000. On November 9, Subsidiary pays off its creditors and distributes $150,000 to Parent with respect to its preferred stock. No cash remain to be aid to Parent with respect to the remaining $50,000 of its liquidation preference for the preferred stock, or with respect to any common stock. In each of Subsidiary’s tax years, less than %10 of its gross

If your company cell phone bill is either $40 when you use up to 300 minutes per month or $80 when you use between 300 to 400 minutes per month, the marginal cost of the 301st minute is

4. Now consider a second alternative for accumulating funds to buy the new billing system. In lieu of a lump sum investment, assume that five annual payments of $32,000 are made at the end of each year.

e. On August 1, 2011, the company is paid $3,840 cash in advance to provide monthly service for an apartment complex for one year. The company began providing the services in August. When the cash was received, the full amount was credited to the Extermination Services Revenue account.

The reading course material required for this class, and the information reviewed throughout the course are the foundation for the content of this Guide. Each of the five key compensation processes will be reviewed in the context of:

Calculate the after tax cost of debt using the following information (hint: see page 285 in text).