Indirect tax

What advantages might indirect taxes have over direct taxes? Answer: Indirect taxes are mostly taxes on spending, which is usually in the supply chain transferred to the consumer as part of the price of a product. As a result, the consumer ends up paying the tax by paying more for the good or service. Examples of indirect taxes could be VAT and a number of excise duties on alcohol, tobacco and oil. On the other hand, direct taxes are taxes levied directly on the income of an organization or individual. It is completely different to indirect taxes as it is just paid to one entity. Income tax, capital gains tax, inheritance tax and corporation tax are also categorized as direct tax. It is argued that high level of indirect tax may create…

The government of UK Imposed a tax on sugary drinks in order to Discourage the companies to reduce the amount of sugar they use in the drinks, reduce sugar consumption in the form of sugary drinks and subsidize sports in schools so that the people, especially children could be protected to get obese. The consumption of sugary drinks in the UK is a negative externality of consumption, which is defined as the consumption of any good which creates a cost for the third parties. In this case,…

Cigarette indirect tax The article is about the Health officials would add $2 tax to packs of cigarettes in California in order to discourage people from smoking to save lives. One major aim to raise the tax is to reduce the consumption of cigarette because it is a de-merit good which would bring bad impacts on the economy. Second-hand smoking may cause serious illness to people around, so it is considered as negative externality, defined as an activity that imposes a negative effect on the…

First off, what is a nudge you may ask? The idea behind a nudge is to give people a set of options that are designed to push them into making a certain choice. Behavioral economists call this choice architecture. A successful nudge revolves around providing a chosen default option so that when consumers don’t choose actively, the default choice is made on their behalf. A common nudge is to reframe opt-in/out defaults for programs that involve enrollment choices. Organ-donation programs in A…

1). Politicians and tax researchers have come up with a plan to reduce the prevalence of obesity, by implementing an excise tax on items that contain added sugars. On average, added sugars add almost two-hundred kilocalories to a person’s diet, and added sugars provide no nutritional value (Brownell, et al. 1599). They have also been linked to type two diabetes and obesity, which is a reason sugary drinks are targeted. There is a debate on how the United States should handle the rise in obesity.…

Goods and Service Tax Bill – Victim of Politics or Technicalities? Tax Structure in India In the Indian tax system, the Central government levies excise duty on manufacturing and service tax on the supply of services. The State government levies sales tax or value added tax (VAT) on the sale of goods. In addition, the Central Government levies the Central Sales Tax (CST) on inter-state sale of goods which is collected and retained by the state exporting the goods. The states also levy tax on…

The many factors of this framework can all lead peoples and states to attempt indirect approaches to warfare as they test the new balances of power and the limits of national and trans-national influences, or begin to influence resources and activities on the global commons. The following case studies are a small sampling to illustrate the applicability of Hart’s and Corbett’s…

growth in multinational corporations but also in regards to acquisitions. Transfer pricing occurs when related parties exchange for goods. They are only useful for tax purposes so therefore should only be apparent on the parent’s financial statements. Throughout our research on intercorporate transfer pricing we were intrigued by the effects it has on taxes purposes and financial statements. Transfer pricing has a direct effect on the financial statements. For this reason they are a crucial…

Policy Proposal: Tax Reform Package in Japan Japan has remained in an extended period of stagnation for over a decade, since 1992, leading to a massive drop in per capita income. Consequently, the economy that stood to threaten the global markets in competition developed fragile pillars that affected the course of investments in the nation. As a member of the OECD area, Japan regained a steady growth trend after 2002 that saw a notable improvement in its GDP. Nonetheless, this upward course was…

estate they are subject to the estate tax. b. No, 2042(b) since D still has the ability to designate the beneficiary the gift is not complete and he is deemed to retain “incident of ownership” and the policy will be included in the estate. c. D should transfer the policy to another individual or an irrevocable trust. D must divest himself the incidents of ownership. D must give up the right the power to change the beneficiary, to surrender or cancel the policy, to assign the policy, to revoke…