Why Do Some Individuals Consider Tax Deferred to Be Taxes Saved? Is Their Reasoning Logical?

In: Business and Management

Submitted By kingbob
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Aku its final exam question …….it’s like take home exam where we will get 24 hours to write this questions and submit it tomorrow morning at 9 a.m …… so please help me to write this questions which you find very easy or familiar….it would be very grateful if aku could write and post me today evening around 4 or 5 p.m because I have to frame it in my English standard as you will have very high standard….soo….plz make spare few hours for this and post me the answers na aku……..

These are the questions…….?

Question 1

Why do some individuals consider tax deferred to be taxes saved? Is their reasoning logical?

(4 marks)

Question 2

Mr. Karma is an employee of XYZ ltd. He draws salary @Nu.20,000 p.m during the year 2010-2011. He occupies residential house at Thimphu. Its rent is Nu.6000 p.m. He is offered three alternatives by the employer:

1) The company pays the rent direct to the landlord, the tenancy being between the company and the landlord.

2) The company pays house rent allowance to karma @Nu.5750 p.m and karma pays rent of Nu.6000 p.m to the landlord-the tenancy being between karma and the landlord.

3) The company neither offers karma the house accommodation, nor the rent allowance. Karma pays rent of Nu.6000 p.m for the accommodation occupied by him.

He requests you to advise him as to which option would minimize his tax liabilities and maximize the cash inflow after tax. (5 marks)

Question 3

Governments around the world are becoming increasingly sensitive to the loss of revenue resulting from multinational companies moving into other jurisdictions, most particularly tax havens, to lower their overall rates of tax. What are some of the measures that can be adopted to prevent such revenue losses? (5 marks)

Question 4

Maxisoft is a private company incorporated, managed and controlled in country A and…...

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