Concept Of Vat On Imported Services

The appellants view the “substance” of the transaction is over the “form”. Generally, taxpayers are bound by the form of their transaction and may not argue the substance triggers different tax consequences. The Tax Court found the form and substance of the transaction was a loan from the bank to VAFLA and not to the appellants. The proceeds were to be used in the operation of the business and petitioners were not free to dispose the loan. Nor were the payments reported as constructive dividends.

Background: Taxpayers brought action against government for a refund of penalties and interest totaling $89,736 imposed for late filing and payment of taxes. Government moved for summary judgment. Holdings: The District Court, Saylor, J., held that:

After reviewing John and Jane Smith’s points of view, it will be your turn as a tax professional to decide on the best course of action from a tax

Provided Case 09-3, we, Group 7 have dutifully researched the topic, using resources at our disposal to formulate a consistent, clear and legal response. The following submission outlines the case, our conclusions with supporting evidence and the accounting issues present in the subject.

the taxing authority, management believes that if it were to negotiate a settlement with the taxing

Taxation surrounds us in the world. Individuals fear tax, and a majority of the items we use and need are taxed. Even on topics such as Celebrities and the Olympics, taxation manages to find its way to still come up.

The matter was presented to the Administrative Appeals Tribunal (AAT) and AAT has different views on this matter and AAT considered the historical Cases and

(b) R v Secretary of State for Transport, ex p Factortame Ltd (No.1) [1990] AC 85 and (No.2) [1991] 1 AC 603

Depriving someone of their human rights shows the darkness of humanity. In the story Night by Elie Wiesel, prisoners are told to run through horrible conditions. In the text, it states “The SS made us increase our pace”. “Faster, you swine, you filthy sons of bitches!

The total of goods & services purchased which are subject to use tax in my state of

From this statement, we may conclude that instead of analysing the case by interpreting the term ‘subject to tax’, the Advocate General is actually interpreted that the term ‘exempt’ mentioned by the Directive should be interpreted as including a corporate tax at a ‘zero rate tax’ in the definition of the term.

One of the most evident and thought provoking aspects that we see as consumers on a daily basis is the effect of sales tax. The effect of sales tax vary from the examination of how much this tax can increase our purchases. To why there are higher and lower tax percentages based on different purchases. Knowing that this tax is in place determines the actions of both sellers and consumers. With sales tax continuing to evolve and change certain bills such as the Remote Transaction Parity Act of 2015 have been put into place and action.

The businesses among the process of production, collect the taxes from the products they sold and it is then given to the government. Therefore, it is a general consumption tax because the tax ultimately falls on the final consumer. VAT is also referred as an indirect tax because it is collected by the government from the seller (the businesses) and not the final consumer who pays the tax. This process of adding a tax in each stage of production differentiates itself from a sales tax (Anastakis, N.D.). Dimitry Anastakis, demonstrated this difference where he gives the following example, “if a sales tax of 10 percent is applied to a desk worth $1,000, then the end customer buying the desk from a desk retailer would pay $100 in sales tax and $1,000 to the desk retailer” (N.D.). Therefore, all others involved in each step of production of the desk would pay no tax only the consumer. Further, Anastakis states, “If a VAT of 10 percent is applied to the same desk, the end customer will pay $100 in VAT. If the desk builder has purchased wood and supplies for the desk totaling $400, he/she is thus assessing $600 of value that he/she has added in creating the desk. The desk builder would pay the 10 percent VAT of $40 on the supplies. When he/she remits payment of the VAT to the government, he/ she will remit the total VAT assessed on the end value of the desk ($100) minus what he/she has already paid ($40), to total $60 based on the added value” (N.D.).

The leading cases, CIR v Mitsubishi Motors Ltd [1995] and Commissioner of Taxation v James Flood Pty Ltd [1953] that reflect a taxpayer

M/s Gujarat Bottling Company Ltd. & Others v/s The Coca Cola Co. & Others, Supreme Court of India