In this paper of mine I will try to analyse the Vodafone case in terms of capital gains. On comparing Sanofi with the Vodafone case, the question arises why Sanofi was not liable to tax as compared to Vodafone. The answer to this is quite simple as while accounting any corporation liable for the tax one needs to consider both taxability and intention of the transaction.
The main issue before the Court in Vodafone case was regarding the taxability over capital gains between two foreign companies on an overseas transaction. Supreme Court in this particular case deals with the absurdity of the demand for tax on the part of government. There is no similarity between the sale of assets and sale of shares in a company. So, when a corporation have an ownership in the shares of a company, it does n’t mean that the same corporation would also have an ownership in the assets of that company. Under Section 9 (1) (i) of the Income Tax Act, 1961 it is clearly stated that liability to pay tax will arise only in case of a transfer of a capital asset in India. Suppose a Hyundai company operating i...
The IRS usually do not need to validate ordinary business transactions since both the involved parties behave on their own self-interests. However, the IRS is skeptic of any transactions when it comes to evasion of estate taxes and international subsidiaries. When two unrelated companies enter in a transaction, they are involved in arm’s length transaction. However, such is not the case for related companies as they may try to distort the price of the transaction to avoid tax burden. As the boundary of tax evasion and tax avoidance is very thin, especially when it comes to estate tax and international subsidiaries, people often tend to topple over to the evasion side. The case of Estate of H.A. True, Jr. v Commissioner of Internal Revenue in 2005 illustrates the difficulty of obtaining the objective of tax avoidance and how expensive the failed effort of tax avoidance can be (Journal of Financial Service Professionals). Numerous cases of tax avoidance and evasion such as XILINX Inc. and H.A. True illustrate the confusion surrounding the arm’s length standards (ALS) and its application to cost sharing agreements (CSAs). In case of XILINX, the court altered its decisions few times considering the uncertainties of the arm’s length standards. Meanwhile the company believed to have satisfied the standards. Due to the complexity of the arm’s length standards, these cases were compared to other similar transactions. However, it is rare to find two identical cases which meet all the criteria. In both of these cases, the court couldn’t pin point what the actual standards of the arm’s length standards were, giving rise to opportunities of tax evasion. To put the arm’s length standards to a simplest form, the standard requires the two related parties to structure their transactions in such a manner as they would if they were two unrelated parties in similar
The Wisson company policy stated “Personal payments, bribes or kickbacks to customers or suppliers or the receipt of kickbacks, bribes or personal payments by employees are absolutely prohibited”. (p.564) Dealing with employee ethics company policy this is where I would clearly start first. I have found during the course of this case study several facts that Valerie Young was faced with. While going to make photocopies she discovered her bosses personal companies document revealing commissioning and fees totaling $35,000 per month. Valerie also struggled with revealing her discovery with corporate headquarters, while justifying her own values to protect herself and fellow colleagues. Lionel Waters’ personal greed leads to wrongful business
Group behavior in AT&T is of higher regard than some other companies.Verizon and AT&T are two of the largest land line and cellular phone companies in the world. Both have survived major changes and evolution in the communication industry, as well as endured fierce competition from other carriers, particularly in the wireless communication industry. AT&T corporate business has many different guidelines to follow. Not only the code of ethics (as seen below) but they also have a honest and ethical conduct policy, conflicts of interest, disclosure, compliance, recording and accountability, opportunities, confidentiality. fair dealing, and protection of the company and its assets. AT&T Inc. (stylized as at&t) is an American multinational telecommunications corporation, headquartered at Whitacre Tower in downtown Dallas, Texas. AT&T is the second largest provider of mobile telephony and the largest provider of fixed telephony in the United States, and also provides broadband subscription television services. AT&T is the third-largest company in Texas (the largest non-oil company, behind only ExxonMobil and ConocoPhillips, and also the largest Dallas company). As of May 2013, AT&T is the 21st largest company in the world by market value, and the 13th largest non-oil company. As of 2014, it is also the 20th largest mobile telecom operator in the world, with over 250 million mobile customers. Communication is a big a key in organizational behavior. AT&T’s website is easier to navigate, and offers essentially the same information as Verizons. Both companies have active foundations for charities. The way the employees are treated seems to be a major difference between both organizations, with interviews with an employee of both companies ...
In this chapter there were presented three basic discounted cash flow methods for firm valuation that are often used in practice and which explicitly or implicitly include the value of the tax shield of debt. It should be mentioned, as Bertoneche and Federici (2006) and Fernandez (2007a) prove, that the different valuation methods give the same result for total value of the firm as well as for the value of the tax shield of debt, as long as the valuation methods rely on the same hypotheses and do not implicitly include any additional assumptions. Indeed, Fernandez (2007a) notes: “This result is logical, as all the methods analyze the same reality under the same hypotheses; they differ only in the cash flows taken as a starting point for the valuation.”
Depending on the legal parameters, countries may be required to adhere to strict laws and regulations which can leave small room for interpretation and improvising. For tax purposes, US companies are allowed to use faster depreciation and straight line depreciation for financial statements; Starbucks chooses to use the straight line depreciation. When paying taxes, adj...
The following report will analyse Vodafone and their current position in the international market. This report will cover the competitive strategy of Vodafone and their influence of products and services in relation to the demand of the market.
Microsoft and Nokia were long standing partners, but they acted as separate companies. Even though the two collaborated frequently, they each had to go through different development processes; both companies had their own resources, tools, culture and trade secrets, which created a lot of inefficiencies. The CEO of Microsoft announce “one Microsoft” initiative to restructure the company aiming to realign product development line , a month after the announcement CEO had announce the retirement which have send a wrong message to the investors.
However, owing to the complexity and non-accessibility of the law, very few derivative actions succeeded. Among the reasons as experienced in many jurisdictions would tell us that the costs of the litigations, proceedings and attorneys’ fees relative to this claim can be an alarming obstacle for shareholders suing on behalf of the company. These factors, together with the difficulty of establishing liability and seeking permission to proceed with the c...
What is a monopoly? According to Webster's dictionary, a monopoly is "the exclusive control of a commodity or service in a given market.” Such power in the hands of a few is harmful to the public and individuals because it minimizes, if not eliminates normal competition in a given market and creates undesirable price controls. This, in turn, undermines individual enterprise and causes markets to crumble. In this paper, we will present several aspects of monopolies, including unfair competition, price control, and horizontal, vertical, and conglomerate mergers.
In company law, registered companies are complicated with the concepts of separate legal personality as the courts do not have a definite rule on when to lift the corporate veil. The concept of ‘Separate legal personality’ is created under the Companies Act 1862 and the significance of this concept is being recognized in the Companies Act 2006 nowadays. In order to avoid personal liability, it assures that individuals are sanctioned to incorporate companies to separate their business and personal affairs. The ‘separate legal personality’ principle was further reaffirmed in the courts through the decision of Salomon v Salomon & Co Ltd. , and it sets the rock in which our company law rests which stated that the legal entity distinct from its
Making an analysis of the profitability of the shareholder can be seen that although both companies have similar returns, the source of this return is different.
Between 2014 and 2015 Nokia has made some improvements but not much. They may not be as popular in North America as they use to be, but they are definitely still present in Europe and Asia-Pacific areas.
A registered company, as an artificial person is separate from its members and exists only by virtue of the Companies Act under which it is incorporated. When a business is incorporated, it becomes a separate legal entity and, therefore, can be sued and sue without affecting the shareholders personal assets. This was established in “Salomon v A Salomon Co.Ltd”. Separate legal personality is known as the veil of Incorporation. This protects the shareholder and places the responsibility of the company onto the directors. These duties are outlined in the Companies act 2014.
The nature of research instruments, the sampling plan and the type of data the research design constitutes the blueprint for the collection, the measurement and analysis of data. It aids the researcher in the allocation of his limited resources by posing crucial choices.
Mauritius Telecom (MT) Ltd is the leading telecommunications operator and service provider in Mauritius. Incorporated in 1988 as Mauritius Telecommunication Services, it acquired the assets of Overseas Telecommunications Services in 1992 and was renamed Mauritius Telecom. It has since enjoyed a phenomenal rate of development and it is now one of the top companies in the country.