Answer the following questions in essay format. Each question must be at least 500 words.
Please, no Plagiarized work !!!
1. Tax avoidance by Multinational Corporations has been one of the most controversial issues in the debate about globalization. Recently the U.K. has instituted a new tax popularly referred to as the “Google Tax”. What is this tax about and how will it force MNCs to pay their fair share of taxes.
2. Tax systems are crucial to the economic performance of a country. A flawed tax system could lead to detrimental consequences, among them is economic catastrophe. Greece is definitely among the countries whose flawed tax system is pushing the economy to the brink of collapse. Explain how the Greek tax system was at the root of the current Greek crisis.
3. New Zealand has been praised for having the best system of Value Added taxation. The Goods & Services Tax (GST) has become New Zealand’s best export to the rest of the world as other countries have adopted it. Explain why the GST has been a success story.
4. Based on what you have learned in this course about the various taxes, their advantages and their drawbacks, devise a tax system for a poor sub-Saharan country with no natural resources (oil & gas). In other words, what combination of taxes would you use to raise enough revenue to provide essential public services and yet not stall the country’s economic development? You must back up your choices with explanations.
Part B: Corporate tax calculation
1. The Pullers Corporation specializes in consulting and reports the following results for the previous year:
Gross revenue from sales $930,000
Dividends received (less than 20% ownership) 30,000
Rent of business premise 70,000
Utilities (electricity & phone) 5,800
Salaries paid to employees 357,000
Payroll taxes paid 21500
Travel expenses 25,150
Interest expenses 18,600
Dividends paid to shareholder 77,400
Charitable contributions 5,500
What is Bakers’ taxable income for the previous year?
2. The Smith Corporation suffers a $32,000 net loss from operations for the previous year but receives $50,000 in dividend income from corporations in which it owns 50% of the stock. What are the dividends-received deduction and the corporation’s actual taxable income for the previous year?
3. The XYZ Corporation has the following entries on its books for the previous tax year:
Net income from operations $120,000
Dividends received (70% rules)
$14,000 Charitable contributions made in current year $13,000
Charitable contribution carryover from the previous year $1,900
What is XYZ’s taxable income for the current year?
4. General Tourism is a C Corporation, running a chain of hotels. The company reports the following results for the year 2018.
Total revenue from hotels $9,450,000
Food & drinks purchased $1,250,000
Other supplies 48,000
Hotel shuttles running expenses 60,000
Depreciation on hotel shuttles 8,000
Depreciation on other assets 162,000
Salaries paid to employees 2,300,000
Payroll taxes paid 164,130
Gain on sale of a land 79,080
Purchase of new swimming pool 84,000
Withholding tax deductions 525,000
Loss carried forward from tax year 2017 1,150,000
What is General Tourism taxable income for the year 2018?