Mr. Chuang set up a company called Good Home Limited. The company holds several properties in Hong Kong and lease out to earn rental income. Mr. Chuang wonders whether the company should pay property tax or profits tax. He also concerns if double taxation of the same income derived from a property under property tax and profits tax will charge to Good Home Limited and how it can avoid this if so. Advise Mr. Chuang
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- Mr A has formed an Accounting Practice business partnership. Your area of expertise is in Income Tax matters in Australia. Jonathan is one of your clients and he has come to see you seeking advice on how to minimize his tax. MR A explains to Jonathan of the many ways in which to reduce his tax liability. Jonathan is most impressed by what MR A has told him and he pays a fee for his professional advice and then carries out Mr A's suggestions on tax minimisation. Unfortunately, MR A has misread the tax legislation and as a result Jonathan is audited by the Australian Taxation Office who then issues him with a tax liability of $600,000.00 plus interest. Discuss what the consequences are to MR A for giving Jonathan bad advice.Mr. Chan set up a company called Good Home Limited. The company holds several properties in Hong Kong and lease out to earn rental income. Mr. Chan wonders whether the company should pay property tax or profits tax. He also concerns if double taxation of the same income derived from a property under property tax and profits tax will charge to GoodHome Limited and how it can avoid this if so. Question: Advise Mr. Chan.I Have This Question. I need an answer relevant to US Tax Code. 5). Leno Hardware is owned and operated as a sole proprietorship by Larry Leno. The location is excellent, and he is approached by a buyer, Hard Bargains Inc., a national chain of hardware stores. What are the tax consequences in the following situations? Larry sells the store for cash. Larry sells the store for marketable stock in Hard Bargains. Larry incorporates the store and exchanges the stock for shares in Hard Bargains. Same as (c), but Larry incorporated his hardware store two years earlier. check_circle Expert Answer thumb_up thumb_down INTRODUCTION When the situation arises to sell your business where the buyers are around the corner, the seller may meet a proper tax bill. Careful computations and transactions are needed while winding up and selling off the business with responsible tax abiding taxes. The seller will be taxed on the gain or profit he/she make from selling the business.…
- Your group has formed an Accounting Practice business partnership. Your area of expertise is in Income Tax matters in Australia. Jonathan is one of your clients and he has come to see you seeking advice on how to minimize his tax. You explain to Jonathan of the many ways in which to reduce his tax liability. Jonathan is most impressed by what you have told him and he pays a fee for your professional advice and then carries out your suggestions on tax minimisation. Unfortunately, you have misread the tax legislation and as a result Jonathan is audited by the Australian Taxation Office who then issues him with a tax liability of $600,000.00 plus interest. Discuss what the consequences are to your group for giving Jonathan bad advice.ABC Corporation’s CEO owns a condominium in Bahamas where top executives and their spouses stay, from time to time, for personal leisure only. The CEO pays all upkeep and other incidental expenses of the condo. Do you think the benefit provided to the top executives would be taxable or not? It is important to note that the CEO does not use any of the corporate funds to maintain the condominium. The purpose of the benefit is to reward the employees.X owns a business in Manila. BIR imposed income tax on X’s net income while the City of Manila thru Mayor Isko, imposed another tax to X since he is operating within Manila. Choose the correct answer: a. There is direct double taxation b. Direct Double taxation is allowed in the Philippines c. The taxes collected are valid d. X can refuse to pay tax to City of Manila because he already paid the necessary tax to BIR e. None of the above
- Newton is a professor at the University of Texas. He is preparing a lecture on corporate income tax in the United States. He has planned to ask a few questions on corporate income tax at the end of the lecture. One of the questions is, "Which of the following is a criticism of the corporate income tax?" The following four options are given to the students, find out the correct option: It is regressive. It is duplicated because it is levied by both the state and federal governments. It is taxed a second time by the Individual Income tax. It is "forgiven" as an offset to the estate tax.Mr Rahman is a professional accountant who works in a big corporation. While filling his income tax, he deliberately hid the information that he received some income from his part-time consultancy service to a scall company. This action of Mr Rahman can be termed as _______ a. Tax planning b. Tax avoidance c. Tax hiding d. Tax evasionWhich of the following is most likely not a trade transaction for income tax purposes? A. In August 2020, Jackie imported fine diamond jewelleries from South Africa which she placed it in her diamond boutique in London for resale on higher profits. B. Aziza imported a consignment of tourist gifts made of genuine leather from overseas. She subsequently sold all the gifts through a few tourist agents on commission. C. Alexander sold his inherited properties during the tax year 2020/21. The properties were inherited from his wealthy father. A property agent helped him in doing that by advertising the properties in a local magazine in search of good prices. D. Speculating the fluctuation in the price of gold, James bought a large quantity of gold on 1 July 2020 and successfully resold on 15 September 2020.
- 5). Leno Hardware is owned and operated as a sole proprietorship by Larry Leno. The location is excellent, and he is approached by a buyer, Hard Bargains Inc., a national chain of hardware stores. What are the tax consequences in the following situations? Larry sells the store for cash. Larry sells the store for marketable stock in Hard Bargains. Larry incorporates the store and exchanges the stock for shares in Hard Bargains. Same as (c), but Larry incorporated his hardware store two years earlier.Which of the following is not considered a purpose of taxation? A. To regulate B. To make the poor poorer C. To minimize the adverse effects of certain activities D. To have an equitable distribution of wealth among inhabitants True or False: You are employed. The Income tax on your salary is required to be paid at the Mayor’s Office.Please ignore value added tax (VAT) for the purpose of this question. Lebohang Tsheng is 42 years old and a resident of South Africa. He owns asmall soap business and sells branded soaps to guesthouses and hotels.The Commissioner considers the process of manufacturing soap to besimilar to that of manufacturing for taxation purposes.To maintain high quality standard of his products Lebohang created aStandard Operating Procedure (SOP) document for his business. As part ofhis SOP he assess the efficiency of all his assets formally once every threeyears, and informally whenever the need arises.After concluding his assessments on several assets during the 2020 year ofassessment Lebohang disposed and acquired assets as follows: 1. A machine used to manufacture guest soap was sold for R180 000 on30 October 2019. The second hand machine was originally acquiredon 01 November 2016 for R350 000 and was brought into use in hisprocess of manufacture on the same date. The machine was replacedwith a…