The UK tax gap in 2021 was £35billion or 5.6% of total tax liability. • Required: Identify two factors that contribute to the gross UK tax gap and explain two tax policy/administrative approaches the UK government takes to mitigate the impact and to collect the tax not otherwise voluntarily paid.
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The UK tax gap in 2021 was £35billion or 5.6% of total tax liability.
• Required: Identify two factors that contribute to the gross UK tax gap and
explain two tax policy/administrative approaches the UK government takes to
mitigate the impact and to collect the tax not otherwise voluntarily paid.
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Solved in 2 steps
- "Tax evasion and tax avoidance costs in UK government £34 billion a year" a) In the light of the above statement, explain the terms tax evasion and tax avoidance? b) Discuss the measures that the UK government are taking to migrate tax avoidance and tax evasion?ENKANTADYA Corporation furnished you its financial data for 2018 as follows: Gross income, Philippines - P 800,500Expenses, Philippines - 450,000Gross income Singapore - 700,000Expenses, Singapore - 400,000Personal expenses - 150,000Interest from time deposits, BPI, Philippines - 20,000 Interest on money market placement, net of tax - 22,000How much is the amount of final withholding tax on passive income ?Oracle Corp, a U.S. corporation, earns $25 million of taxable income from U.S. sources and $10 million of taxable income from foreign sources. What amount of taxable income does Oracle report on its U.S. tax return? a. $25 million. b. $35 million. c. $25 million less any tax paid on the foreign income. d. $35 million less any tax paid on U.S. income.
- Starting 1 January 2020, the government began imposing a digital services tax (DST) of six per cent on foreign digital service providers (FSPs) in Malaysia.based on the above required to explain and discuss clearly on administration of digital tax of threshold . What was the threshold and explain on it ?Using the same data in the previous question, what is the income tax due if Sandbox is a resident foreign corporation? P50,000 P40,000 P87,500 P70,000Flint Steel Corporation has a precredit U.S. tax of $188,000 on $518,000 of taxable income in 2016. Flint has $218,000 of foreign source taxable income and paid $98,000 of income taxes to the German government on this income. All of the foreign source income is treated as general category income for foreign tax credit purposes. Flint's foreign tax credit on its 2016 tax return will be: A. $98,000 B. $37,560 C. $79,120 D. $120,000
- a) Explain, in three sentences or less, ‘cross-credit’ in relation to the foreign tax credit. Make sure to identify the problem, and how cross-crediting solves the problem. b) Treadwell, Inc. had $2,500,000 taxable income, $250,000 of which was generated by business activities in foreign jurisdictions. If Treadwell paid $55,500 foreign tax to Utopia. Compute the following: US tax paid______________________ Worldwide tax paid_______________The U.S. currently has seven federal income tax brackets, with rates of 10%, 12%, 22%, 24%, 32%, 35% and 37%. If you fall into the 37% bracket, that doesn’t mean that the entirety of your taxable income will be subject to a 37% tax. Instead, 37% is your top marginal tax rate. FEDERAL TAX BRACKETS 2018 – 2019Tax rate (%) $0 – $9,52510 $9,526 – $38,70012 $38,701 – $82,50022 $82,501 – $157,50024 $157,501 – $200,00032 $200,001 – $500,00035 $500,001+37 Create a Mathematical Model that represents the aforementioned information to calculate the annual income tax.How much annual income tax you will have to pay if your monthly taxable income is $ 40,000DIGITAL TAX IN MALAYSIA Starting 1 January 2020, the government began imposing a digital services tax (DST) of six per cent on foreign digital service providers (FSPs) in Malaysia. Based on the given required to produce the write up on Digital Service Tax (DST) in Malaysia. Below is the content of your write up. 1 Administration of Digital Tax - Scope of Digital Tax- Chargeable person- Taxable period- Threshold- Submission of return- Offence and penalties
- K Ltd. paid an employee a tax-free travel allowance of $5,300 based on 9,000 kilometres of out-of-town driving in 2022. What amount can K deduct for tax purposes?D6) If the corporate tax rate in a foreign country is 20%and the tax rate in the home country is 30%, when calculating NPV a.you must account for paying the additional 10% in corporate taxes. b.you do NOT adjust NPV for taxes c.you should account for paying an additional 30% in corporate taxes. d.you should increase the NPV of the project by 10%.Congress would like to increase tax revenues by 18 percent. Assume that the average taxpayer in the United States earns $53,000 and pays an average tax rate of 25 percent. a. If the income effect is in effect for all taxpayers, what average tax rate will result in a 18 percent increase in tax revenues?