There have been few areas of economic policy making in which the returns to good decisions have been so high and the punishment of bad decision have been so cruel. Critically discuss the validity of this statement by discussing the Tanzanian income Tax law on taxation of minerals and petroleum
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There have been few areas of economic policy making in which the returns to good decisions have been so high and the punishment of bad decision have been so cruel. Critically discuss the validity of this statement by discussing the Tanzanian income Tax law on
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- What statement is false? a. A tax on consumption will effectively result in virtually all residents of the State paying the tax. b. A tax on consumption would support savings initiative. c. The consumption tax for purchases of goods or services from foreign sources shall be payable by the buyer. d. Business taxes are usually included in the price of goods and services of the seller but are remitted by the seller to the government. e. All of the statements is correct.Tax planning is the act of arranging one’s tax affairs in ways that postpone or avoid taxes. By employing effective tax planning variables, one can have more positive cash flows to save and invest or more money to spend.Required:Explain what constitutes the variables of tax planning. The Government of Ghana has been worried by the rising incidence of Transfer Pricing abuses by Multinational and Group Companies. For this reason, it introduced new transfer pricing rules and guidelines through the Transfer Pricing Regulations, 2012 (LI 2188).Required:a. Explain any four (4) objectives of the transfer pricing regulations of Ghanab. Explain the arm’s length principleBoseman is also considering making the entry into the international market by engaging in foreign direct investments in the nations. Which one of the following is not a true statement regarding foreign direct investment from the host country’s perspective? a.Significant financial inflows always result from engaging in foreign direct investment. b.Foreign direct investment can create new jobs and can generate tax revenues for governments c.A concern of the local governments in host countries is the lack of corporate social responsibility d.There is the potential for exploitation of human labor within certain countries e.These investments may take the form of plants, buildings, or inventories
- Discuss problems regarding tax evasion in a country? What should be the solution that can be done by the government?A firm can use transfer pricing to lower its income tax payments by reporting more income in high-tax-rate countries and less income in low-tax-rate countries. However, the tax regulations of different countries restrict the transfer prices that companies can use. True False: A firm can use transfer pricing to lower its income tax payments by reporting more income in low-tax-rate countries and less income in high-tax-rate countries. False: The tax regulations of different countries do not restrict the transfer prices that companies can use. both B and C none of the aboveBecause of political instability in North Africa, let’s not disclose specific countries. In addition, we restructured most of our French sales and some of our U.S. sales to occur through our offices in the Cayman Islands.This allows us to avoid paying higher taxes in those countries. The Cayman Islands has a 0% corporate incometax rate. We don’t want to highlight our ability to shift profits to avoid taxes.Required:Do you perceive an ethical dilemma? What would be the likely impact of following the controller’s suggestions?Who would benefit? Who would be injured?
- Discuss problems about “Income tax rate is too high” in a country? What solutions can be done to solve it?“On an international scale, tax authorities and international organisations increasingly scrutinize and penalizemultinational corporations for misusing transfer pricing.” In light of this statement, critically evaluate why MNCsstill engage in transfer pricing.=Explain the main differences between tax evasion and tax avoidance and list the main actions taken by governments to reduce/eliminate them?
- Give an opinion about the Legality of The Assault on Tax Avoidance Practices in the Philippines1-If a country imposes lower corporate income tax rates, does that provide an unfair advantage? 2-Why might different tax laws on corporate income across countries allow firms from some countries to have a competitive advantage in the international trade arena?Assume the government introduces a lump-sum tax on each firm within a perfectly competitive industry. Which of the following will be true after the introduction of this tax? a. Consumer prices will increase b. There will be no change in any firm’s level of profits c. A deadweight efficiency loss will occur d. There will be no change in the market quantity of output
