e. If taxable, should the Company calculate its GET liability on a gross or net basis?
Hawaii Revised Statute §237-3(a) defines “gross income” as:
(1) the gross receipts derived from business or sales;
(2) the value proceeding or accruing from the sale of property and/or service; and
(3) all receipts by reason of the investment of the capital, including interest, discount, rentals, royalties, fees, or other emoluments however designated. Gross income is calculated without any deductions for the cost of property sold, the cost of materials used, labor cost, taxes, royalties, interest, or discount paid or any other expenses whatsoever.
Revenue derived by temporary contracting companies working in Hawaii should be reported to the state on a gross
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96-1, Question #10:
Q: If an item is sold by a wholesaler to a retailer which in turn sells that same item to a customer, and if both the wholesaler and the retailer pay general excise tax when they sell that item, isn 't that double taxation since the sale of that item is taxed twice?
A: No, double taxation occurs only when the same transaction/sale is taxed twice. The general excise tax is a tax which is imposed on each business transaction occurring in Hawaii. In this situation, there are two sales transactions, and each is separately taxed. The wholesaler in the first transaction is taxed at 0.5% of the gross proceeds of the sale. The retailer in the second transaction is taxed at 4% of the gross proceeds of sale. Because there is general excise tax due on every transaction, with intermediate transactions usually being taxed at a lower rate, the tax is often said to "pyramid".
f. If taxable, what is the correct category and rate that the Company should use in calculation its GET liability?
i. Wholesaling/Intermediary Tax Category -
Blaise M. Sonnier, J.D., DBA. (2012). Circular 230: Its Day-to-Day Impact on Tax Practices. Retrieved October 12, 2016, from http://www.thetaxadviser.com/issues/2012/feb/tpr-feb12.html
Income is paid to shareholders as wages then that is also taxed on the shareholder 's personal income tax return.
ASC 606 is a new revenue recognition principle that provide standards for recognizing revenue from contracts that provide goods and or services to a consumer. EY identifies the following five steps to apply the new principle: "Identify the contract(s) with a customer, identify the performance obligations in the contract, determine the transaction price, Allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the entity satisfies a performance obligation.("Technical")" Section 451 of the IRC generally requires taxable income to be reported by completing the all-events test and the amount is reasonably determinable ("26"). This can create a variation from the financial statements and the taxable income amount. To further study
What amount of compensation expense should Murray recognize in the years ended December 31, 2008, 2009, and 2010?
Laux, R. C. (2013). The Association between Deferred Tax Assets and Liabilities and Future Tax Payments. Accounting Review, 88(4), 1357-1383. Doi: 10.2308/accr-50417
the company’s part is determined by an estimate of how much money will be lost.
Tesco will be affected by direct and indirect taxation which in turn has impacts on business costs, on aggregate demand, and therefore on business revenues.
We did quite a great job at making the profit because as you can see the number above. We only invest $55.00, but we the revenue that we received from customers were up to $138.00. Next is the GST from sales are $138.00, our GST is $18.00, GST of expenses is $13.73 while GST for IRD is $4.26 we have only been reselling our products, so that why the GST statement is easily set up, the total for our net profit is actually $40.00, but because we have mines 7.20 therefore we only have got $32.80 in our net profit. In the balance sheet statement as you can also see there are only a few number “once again it’s because we invest in a small amount of money” so the amount of number that I have put in the columns just a few. For current assets we have got $78.80 but current liabilities, non- current assets and non- current liabilities are none which is because we did not sell a lot of products. In the owner equality I have got capital $55.00 whereas we have got $32.80 on our net profit which is cool. In the net profit margin (net profit before tax ÷ net sales, in this edition I will only show the perseratus so the results is in the percent which 23.7% whereas return on owner’s equality diving by total owner equality which is 37.3%
It was the year 1987 when the Gartner Group popularized the form of full cost accounting named Total Cost of Ownership (TCO)(author, Gartner Total Cost of Ownership). Originally TCO was mainly used in the IT business sector. This changed in the 1980’s when it became clear to many organizations that there is a distinct difference between purchase price and full costs of a products ownership. This brings us towards the main strength of conducting a TCO analysis, besides taking the purchase costs into account, which consist of the amount a money an organization pays for the required service, product or capital outlay. It also considers 1. Acquisition costs; these can consist of sourcing, administration, freight, and taxes. 2. Usage costs, which consists of the costs associated with converting the given product or service into a finished product. And finally 3. End of life cycle costs; the costs or profits incurred when disposing of a product. TCO can be seen as a form of full cost accounting; it systematically collects and presents all the data for each proposed alternative.
Sollars, G. C. 2001. An appraisal of shareholder proportional liability. Journal of Business Ethics, 32(4), 329-345.
Net income is reported on the income statement. The income statement shows the results of a company’s operation for a period of time. The income statement summarizes the revenue generated and the cost incurred to generate those revenues. Income statements seek to differentiate revenue and expenses which is net income. Let us examine the various aspects of the income statement and their effect on the income statement. (Albrecht, 2002)
One theory that is used in accounting is that of Conservatism. This notion states that all liabilities should be accounted for even if there is a possibility that they will never take place. This same principle applies to liabilities but not to revenues. The only revenues that can be accounted for are the ones that have already taken place. Any liability that might happen should be recorded and at the higher possible amount. For instance, if a company is sued for any reason and the legal department determines that the possible liability to pay claims will be somew...
When looking at a company's finances, there are essentially four items to consider: the income statement, the price earnings ratio, the balance sheet, and the statement of cash flows, (Block, 2005). The income statement is a tool used to measure profitability over a given period of time, i.e. quarterly, annual. The income statement evaluates the cost of producing goods or services and the money that was made as a result of selling those goods/services. Gross profit and net earnings are two key features to look at.
The basis of accounting consists of two main parts. First is the cash or modified accrual basis and the other is the accrual basis. Both the cash and accrual basis of accounting are widely accepted principles within the accounting field that assist with keeping accurate notation of the income and expenses when dealing with a business. The main difference between the cash and accrual basis is the time at which revenues and expenses are reported on the income statement. (1) A specific criterion has to be followed in order to choose which accounting method should be executed. (1)
There are various other direct taxes & their share is negligible. For eg :- Interest tax, wealth tax, estateduty, expenditure tax etc.