Taxation Assignment Help
Taxation is a means by which governments finance their expenditure by imposing charges on citizens and corporate entities. Governments use taxation to involve or devolve citizens into specific economic decisions. For example, reduction in taxable personal (or household) income by the amount paid as interest on home mortgage loans results in greater construction activity, and generates more jobs.
Taxation as A Subject:
There is an in-depth science behind taxation and many students who would like to work in the field need to learn a lot of things before they are ready to practice.
Taxation as a subject is very complicated and attempting taxation assignments could be more difficult. Therefore, students tend to take assignment help services.
Types of Taxes:
Every organization has to pay a variety of taxes based on the company’s physical location, ownership structure and nature of the business. Business taxes can have paramount impact on the profitability of businesses and the amount of business investment. Taxation is a very important factor in the financial investment decision-making process because a lower tax burden allows the company to lower prices or generate higher revenue, which can then be paid out in wages, salaries and/or dividends.
Business May Be Required to Remit the Following Types of Taxes:
• Federal Income Tax
A tax imposed on the annual income by national government.
• State and/or Local Income Tax
A tax imposed by state or local government on annual income. Though, not all governments have implemented state level income taxes.
• Payroll Tax
It is a tax that is paid by the employer on behalf of its employees on the basis of the salary of the employee. In countries like the United States both state and federal authorities collect some form of payroll tax. In the United States, Medicare and Social Security, also called FICA, make up the payroll tax.
• Unemployment Tax
A federal tax that is allocated to state unemployment agencies to fund unemployment assistance for laid-off workers.
• Sales Tax
Sales taxes are the taxes that are imposed by the government on the goods purchased and are collected by the retailer and are then passed to the state. Sales tax is based on a percentage of the selling prices of the goods and services and is set by the state. Technically, consumers pay sales taxes, but effectively, business pay them since the tax increases consumers costs and causes them to buy less.
• Value-Added Tax
A national sales tax collected at each stage of production or consumption of a good. Depending on the political climate, the taxing authority often exempts certain necessary living items, such as food and medicine from the tax.
• Corporate Tax
The corporate taxes in Australia are imposed at 30% flat rate. Employees as well as companies need to pay tax to the federal government in Australia for profits earned. Prior to the distribution of profits (as dividends) amongst the shareholders, the corporate tax is paid to the government. Franking credit, is the tax credit in Australia, is made available to the shareholders so that they can see the corporate tax, which has already been paid. The above mentioned procedure is known as dividend imputation.
• Inheritance Tax
Among all the other taxes that are imposed in Australia, Inheritance Tax is also included. They don’t have inheritance tax in general but in events when there is estate acquired assets, the assets are subjected to the Capital Gains Tax or the CGT. The Australian government envisages that, if individual inherited assets from a deceased person who breathed his last after September 20th, 1985, special records are required to be maintained. If the asset acquired was prior to 20th September, 1985, the asset value at the time of death is too evaluated.
• Income Tax
Different types of taxes in Australia also include income tax. Income taxes form the main sources of revenue for funding the different activities of the government, especially the federal government. Income tax is levied on individuals who fall under the taxable group of people. The idea of income tax took birth in Tasmania in 1880. During that period tax was imposed to collect money from the people of Tasmania, as the government in Australia was not in a good state. Thereafter, income tax was levied on the income of the people residing in Southern regions of Australia. By 1907, income tax was levied on the income of almost all individuals residing in all the states of Australia. Low Income Tax Offset, Family tax benefit as well as capital gains tax are the different categories of income tax levied on income of individuals along with personal income taxes.
Importance of Taxation
Taxation can be a troublesome subject or difficult to understand but it is an intricate discipline of our government and therefore needs to be focused on.
Principles of Taxation
• Broad Basing
• Restricted exemptions:
Topics covered under Taxation:
• General Law
• Taxation on Salary
• Taxation on Business activities
• Capital Gains Tax
• Taxation on Interest and Dividends
• Taxation on overall Wealth
• Assessment Procedures
• New Legislations
• Social Security