TAXATION

Download
Share  Add to  Flag Embed
Views:
 
Category: Business & Fin..
     
 
License:   All Rights Reserved

Presentation Description

No description available.

Comments

Presentation Transcript

TAXATION: 

TAXATION Dec. 14 th , 2009 Presented by Group 9

Slide 2: 

Definition Functions of Tax Kinds of Tax 1. Excise tax 2. Property tax 3. Direct and Indirect Tax IV. How to Tax V. Progressive Tax and Regressive Tax VI. How to Avoid Taxation

Slide 3: 

I. Definition Tax: money that you have to pay to the government so that it can be used for public services. Taxation: the system of collecting money by taxes.

Slide 4: 

II. Functions of Taxation Raise revenue to finance government expenditure. Dissuade people from luxurious items Encourage re-investment of companies.

Slide 5: 

III. Kinds of tax 1. Excise tax : directly imposed by the law-making body of a government on merchandise, products, or certain types of transactions, including carrying on a profession or business, obtaining a license, or transferring property

Slide 6: 

It is a fixed and absolute charge that does not depend upon the taxpayer's financial status or the value that the taxed property has to the taxpayer.

Slide 7: 

a. Sales tax: placed on certain goods and services, what goods and services are taxed based on the individual state legislatures. a sales tax placed upon expensive items that are considered luxuries is known as a luxury tax.

Slide 8: 

b. Corporate tax: imposed upon the privilege of conducting business in the corporate capacity, which provides certain advantages to individuals, measured by the income of the corporation involved

Slide 9: 

c. Estate tax: placed on, and paid by, the estate of a decedent prior to the distribution of the property among the heirs in exchange for the privilege of transferring the property.

Slide 10: 

d. Gift tax: incurred by an individual who gives another a valuable gift e. Inheritance tax: Individuals who inherit property may be required to pay an inheritance tax on the value of the particular property received.

Slide 11: 

2. Property tax : A property tax takes the taxpayer's wealth into account, as represented by the taxpayer's income or the property he or she owns. Property taxes are imposed mainly on real property.

Slide 12: 

3. Direct and Indirect taxes a. Direct tax: assessed upon the property, business, or income of the individual who is to pay the tax

Slide 13: 

b. Indirect tax: levied upon commodities before they reach the consumer who ultimately pays the taxes as part of the market price of the commodity. Ex: value-added tax, which is paid on the value added to the product at each stage of production, distribution, and sales.

How to tax: 

How to tax 1. Companies pay tax based on profits

Slide 15: 

2. Individuals pay tax based on incomes

Slide 16: 

GNP= Gross National Product: the total value of all the goods and services produced by a country in one year including the total income from foreign countries.

Slide 18: 

GDP= Gross Domestic Product: the total value of all the goods and services produced by a country in one year

Progressive and Regressive Tax: 

Progressive and Regressive Tax In a progressive tax, the more you earn, the higher your tax rate. In a regressive tax, the less you earn, the higher your tax rate. All known functioning systems of taxation have a balance of progressive and regressive taxes

Slide 22: 

Ex: Poor Boy buys a $20,000 car pays $1000 or 5.0% of his income (20,000$) Rich Boy buys a $60,000 car pays $3000 or 1.0% of his income (300,000$)

How to avoid taxation: 

How to avoid taxation Individuals: Loopholes in tax laws Ex: life insurance policies, pension plans, other investments

Slide 25: 

2. Companies: - Making a tax loss - Head offices in low tax places. - Laundering money

Laundering money : 

Laundering money

Slide 27: 

References Business English, Textbook http://law.jrank.org/pages/10695/Taxation-Kinds-Taxes.html http://www.psnw.com/~bashford/taxation.html

Thank you for listening: 

Thank you for listening