College of Banking and Financial Taxations Accounting & Rollover Relief HW see the attached file it is answer of my friend in same class .
I want you to make for it paraphrasing.
The similarity should be less than 5% .
Send the turnitin report needed Running head: TAXATION
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Taxations accounting
Student
Insutition
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Section A
a
To claim for rollover relief, John must be eligible with the following condition
He should have bought the new Factory after three years of selling the new one which he only did
after just three months
Since he acquired the new assets, the old ones were not used in the new business; thus, this makes
him not eligible. To compound his act of selling the old Factory, when he bought the new one, the
old one was not working; thus cannot claim the Rollover relief.
b
Gift relief is claimed when a person gives way some part of his/her business or a fraction of shares.
Gift relief can be claimed when the owners sell the assets for a value that is less on the amount to
be sold on the assets. The advantages of the giving way the shares are that John will not be paying
capital gains tax and the persons who receive them will pay the capital gains on conditions that
he/she resells. For the above case, John can claim the gift relief since it is not specified in the share
are listed on the stock exchange, nor the company is in any securities exchange. John will process
hi gift relief through filling the relief gifts form. He has to claim the gift jointly with his daughter.
The company from which John is giving shares should also be only involved in activities that are
confined to only trading, such as provisions of goods and services.
c. John can claim a gift relief since by gifting his daughter the assets since we are not told whether
he gave her for a price that is less than the market values. John is eligible for the business gift relief
as he is the sole owner of the business and can be assumed to have ownership of more than 5% of
the shares in the business. Since the company is not listed in any stock exchange, he can claim a
gift relief on the business assets. However, he can get partial Relief if he decides to use the assets
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he is giving away partly in another business. He will have some advantage as he will not have to
pay a capital gains tax of the assets he is giving away. But if John decides to make a gain by giving
his assets to her daughter, then he will have to pay capital gains tax.
2. The threshold criteria123000 − 85000 = 38000 the positive result from the calculations
shows that Don Ltd has met the threshold criteria. The Don Ltd company will have to apply for
the VAT when the company turnover exceeds $85000 in a period of twelve months.
Nevertheless, even when on the grounds the Don Company does not have to register, they will
have to apply for the VAT because it is a requirement on professional grounds. Provided that the
company makes taxable supplies, it will be required to register for the VAT voluntarily at any
given time. VAT that is generated in the first six months on the input tax before when the
effective date for the first VAT provided that the business is still running some trading activities.
A scenario that the goods bought, the company has to go back on the condition that the goods
have not been used. In this scenario, the goods to be used include the materials in the stock
inventories and additional capital purchases the company might have made on the way, such as
vans for transportation.
Compulsory registration of the VAT can occur when Don Ltd. Has a high probability of having
more than $85000 in one month. Additionally, it can occur when the company has had a turnover
of over $85000 in one year. Registration can also be done following the kind of goods that a
business deals with. The company will have to register by the end of the moth, which realizes it
can meet the threshold for VAT. Then the effective date will be as at the time the company did
realize it can meet the threshold and not the date when at some particular time, the turnover went
above the threshold.
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Explain the meaning of a Taxable Person under the Inheritance Tax.
When someone inherits property after the immediate family members die, the person is subjected
to inheritance tax. The person who inherits this property is referred to as the taxable person. The
inheritance tax must be paid by the taxable person. In like the federal estate tax where the “estate”
pays the money in inheritance tax, it is the beneficiary. It is given property that is responsible for
paying the taxes. The inheritance tax is taxed using some given percentage on a particular level
of inheritance net worth. However, a taxable person may fail to pay the inheritance if a property
was received through a will.
Discuss the withholding tax consequences for the payment made to Overseas
The introduction of the withholding tax in the year 2017, Nakamoto, & Ikeda, (2018), made the
inclusion of interest in various categories of subjects of taxation when doing international
financing. The withholding tax has made the tax gross-up provisions to be included in the
documentation when applying for loans and capital market transactions. Such practices primarily
avail that. For instance, where the withholding operation law is a must, both the borrower and the
lender of loans or other securities are subject to withholding tax, such by the end of the process,
each party receives only net amount t after being subjected to deductions. Another implication of
the withholding tax is that when a person or some entity borrows from foreign financial markets
without having a solid establishment, the cost of borrowing increases.
5.
Inadequate debt relief gives room to any particular business to claim the supplies that they did
pay for VAT, but they have not been offered any form of payment. They can file for a claim by
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referring to the outstanding amount that has not been paid. The following are conditions to claim
Relief for bad debts.
If the sales invoice held by a particular party is overdue for payment for more than six months
Six months have gone by since supply was made to the given business
If the outstanding amount, partially/entirely has been written off during an accounting process as
a bad debt. This is recorded in the bad debt’s account of the accounting records.
6.Explanation and calculation for the residence nil rate
In the calculation of the gross chargeable state, we have to find the sum of all assets using their
market values in the estate and then subtract liabilities from the total summation as at 15
sep/2019
Particulars
amount
Main Residence
2,50,000
Warehouse
6,00,000
Motor Car
20,000
Proceeds from Lic Policy
150,000
VAN
50,000
Cash
20,000
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Shares of the unquoted company
Mortgage Loan for Main Residence
Credit Card expense
6
60,000
-40,000)
-5,000)
Income Tax
-3,000
Funeral Expenses
-4,000
Administration Expenses
-20,000
Exempt Legacies
-2,00,000
Total
878000
From the table, the figures that are indicated with a negative sign are deductions. A noteworthy
exception is that the endowment mortgage is left out in the deductions since it is paid back
during the occurrence of death
The gross chargeable amount of the estate from the table is 878000. Thus to calculate the
inheritance tax from the gross amount. We look at the threshold percentage of the given amount
that is to be charged the tax, which is 325,000—the 878000 − 325000 = 55300. The
amount55300 then subjected to 40%, then we obtain 221200, which is the inheritance tax.
8.
The company was entitled to residence tax, where even if they cooperate or not to cooperate, but
the organization can be managed and controlled. This means that the organization was taxed
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every taxable period every year. At the same time, the vital judgemental decisions are taken by
the Board members of the UK. For instance, the following were considered below:
i)
Since Exe company Ltd. was in an entitles to tax residence region, the
organization should pay their taxes to the UK every 31st in January at the end of every
tax year.
ii)
However, Wye company Ltd. was a non-tax residence organization that
was not responsible for tax payment in the UK. Thus, the organization was a nontaxable company in the country.
iii)
The third company Ezd Ltd. was not involved in the Board meetings, but
every decision and the administration meetings were held in the UK, which was the
directors of the operational meetings chaired in the UK.
Therefore, the company was entitled to tax residence, and they should be expected to pay tax to
the responsible Board in the UK. The tax dated 31st January is expected to be paid at the end of
the same year.
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References
Nakamoto, T., & Ikeda, Y. (2018). Identification of Conduit Countries and Community
Structures in the Withholding Tax Networks. arXiv preprint arXiv:1806.00799.
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