Taxation portfolio Assignment Example | Topics and Well Written Essays - 5000 words

Taxation portfolio - Assignment Example It is due to this reason that students without business background often get intimidated whenever they embark of taxation as a course to study. Nonetheless, it is important to understand taxation concepts and how they impact on businesses as they prepare to enter professional practice. Globalization has forced governments to acknowledge the significance of small businesses in the present competitive markets. In this regard, governments have formulated regulations to implement numerous taxes with a view of maximizing revenue collection. Globally, small and medium enterprises are known for their contribution to economic growth, entrepreneurship and employment creation. Basically, small businesses are known universally as engines for economic growth. This paper focuses on the tax aspects of a small-scale wine business in Australia and also tax implications of individual employees. Taxation consequences This is because they stimulate economic growth and therefore, play a critical role in wealth creation. In Australia, small and medium enterprises account for 37% of economic production and employ roughly 3.7 million people. Nevertheless, similar to other small and medium enterprises across the globe, compliance with government regulations heavily impacts on their operations. This is because SME’s bear significant costs of compliance cost relative to their size. According to Hasseldine and Anold, government regulations, in particular, tax compliances are a major issue for SME’s (370). For instance, following intense political debate, the Australian government introduced good and services tax (GST) which was one of the significant tax reform policies. This was an outrage on the economic impact of GST to SME’s starting with start-up taxation costs. Compliance costs as defined by Kumar, are those costs incurred by businesses in meeting the requirements in order to comply with a given tax structure besides payment of tax itself (35). Such costs inclu de legal and other professional fees, acquisition costs among others. GST compliance costs popularly known as commencement costs are usually incurred by the business in preparation to comply with GST legislation. According to National Audit Office, SME’s forms the large component of the informal sector and are known to evade tax (44). Pope and Fernandez observed that complex tax registration, and high tax rates are the main contributing factors to problems experienced by SME’s in the Australian tax system (15). Value-Added Tax Act provides that Australian economy cannot compete effectively with other world economies when SMEs continues operating in an informal sector (9). In this vein, it is therefore, paramount to reduce the informal sector by putting in place a simplified tax system. Australian government acknowledges the significance of SMEs to the economy and has been providing support to entities falling under this group by way of reducing tax and tax compliance b urden. In addition, the government has also simplified reporting requirements and record keeping. For instance, in 2006 budget, the Australian government passed to reduce taxes on SMEs by AUS$ 435 million over the following four years. As such, SMEs continued to receive more assistance by aligning thresholds, streamlining definitions and reducing tax complexity and compliance costs. SMEs are required by law to maintain record of their sales, which includes income earned excluding GST. Tax compliance and administration

ETHICS MANAGEMENT Essay Example | Topics and Well Written Essays - 750 words

ETHICS MANAGEMENT - Essay Example The individual scenarios illustrate the importance of ethics in management in their day to day activities. The CFA Code of Ethics and Professional Conduct is used as a guideline in resolving each given problem. The Code and Standards  serves as the ethical yardstick of investment professionals all around the world, setting aside the aspects of job title or position, cultural differences, or local laws. The values of integrity, competence, diligence, respect, and in an ethical manner with the public, clients, prospective clients, employers, employees, colleagues in the investment profession, and other participants in the global capital markets are hereby applied in the sample problems in order to resolve the ethical issues presented in this paper. Keywords: ethics management, ethical dilemma, code of ethics, professional conduct, values, global investment ETHICAL MANAGEMENT This paper presents some of the common problems encountered in the professional environment by applying CFA In stitute Code of Ethics and Standards of Professional Conduct to as a guide in order to resolve the ethical dilemmas. The CFA Code of Ethics emphasizes the values of integrity, competence, respect and how to maintain professional competence by placing the interests of the clients above individual interest. On the other hand, the CFA Standards of Professional Conduct highlights the values of professionalism, duties to clients, employers, colleagues, the integrity of capital markets, investment analysis and recommendations and conflicts of interest. Both are used as point of reference in resolving ethical dilemmas and ethical conflicts by applying ethical theories. Problems A & B As a sales representative, I am faced with the ethical dilemma of whether I should close the deal with Fortune 500 company even if I know that the other 2,000 computers will be delayed in delivery and I will earn a sizeable profit by receiving a big commission from such sale and will definitely boost the compa ny’s stock option. As a mother of two children, my kids are entitled to receive support from me, the money that I will be earning will help our family to defray our daily expenses. On the other hand, I will be in violation of the Code of Ethics as I should â€Å"act with integrity, competence, diligence and respect to my clients. I am expected to put the interest of client above my own personal interests†(CFA Code of Ethics 2010). One of my duties to my clients is to be fair in all my dealings with them. In this case, if I pursue with the sale with personal knowledge that the other computer units will not be delivered on time, I am guilty of putting my personal interest above the interest of my client. The long term effect of this sale to Fortune 500 would mean that their company will incur losses because of the failure of delivery on the part of our company. Our company will stand to lose a valuable client if I choose to close the deal without informing them that we c annot deliver on time and blame the delay to the manufacturer of computers. The short term effect will be advantageous on my part as I will receive a lucrative commission and the company will also benefit from the sale by receiving a boost in the company’s stock price and help our executives who want to exercise stock options. In the end, my final decision will be to forego with the deal even if our company will stand to lose a reasonable amount of profit and also if I lose the chance to earn personal gain. The Standards of Professional Conduct requires that in cases of â€Å"conflict of interest, I should make full and fair disclosure of all matters that could reasonably be expected to impair my independence and objectivity or interfere with respective duties to my clie