Michigan sales tax: Sales of cars Facts A Michigan automobile finance company finance consumer purchases of automobiles from its affiliated dealers. Their contract stated: If a customer purchased a car from one of the dealerships, and needed financing to pay for the car, the dealer would refer the customer to the finance company. If the company did finance the purchase, a retail installment contract was entered into between the consumer and the finance company. The finance company would then pay the car dealer the full purchase price of the car, including sales tax. Under Michigan General Sales Tax Law, the car dealer would then pay over the sales tax to the State of Michigan for the purchase. There were some instances when the customer defaulted and the finance company assumed full risk of the collecting the purchase price and sales tax from the consumer. If the finance company was unable to collect, they looked to the State of Michigan Sales Tax department for a refund for the sales tax paid to the dealers. Under the Michigan General Sales Tax Law, does the State of Michigan owe the finance company a refund? Legal Issues The case of Andrie Inc. v. State of Michigan involves the State of Michigan’s assessment of use tax for years in issue November 1, 1999 and ending December 31, 2004, and for the tax period January 1, 2004 and ending July 31, 2006. Andrie’s major customers include large oil companies which Andrie purchased fuel, supplies and fixed assets from retailers. The State of Michigan conducted an audit for the years in issue. Based on Andrie’s records, the State of Michigan assessed use tax on Andrie’s purchases where an invoice did not list sales tax as a separate line item. Andrie objected on the basis... ... middle of paper ... ...rieved from http://www.ehtc.com/Portals/49708/docs/Sales-UseTaxRules-10-09.pdf Miller, R. L., and Cross, F. B. (2013). The legal environment today: Business in its ethical, regulatory, e-commerce, and global setting. (7 ed.). Mason, OH: South-Western Cengage Learning. Miller, R. L., and Hollowell, W. E. (2006). 2007 Business law and legal environment texts. Mason, OH: West Legal Studies in Business. Nolo®. (2014). Michigan internet sales tax. Retrieved from http://www.nolo.com/legal-encyclopedia/michigan-internet-sales-tax.html State of Michigan. (2008). Sales tax, use tax, income tax withholding and Michigan business tax estimates. Retrieved from http://www.michigan.gov/documents/taxes/78_255401_7.pdf State of Michigan. (2014). Sales and use tax FAQs. Retrieved from http://www.michigan.gov/taxes/0,1607,7-238-43529-154427--,00.html
We started our research by reading through the discussions posted within the Topic of Research. From there we read the recommended pages of the text, 20-2, 20-3, and 20-4 regarding the liquidation process. Using the CCH Tax Research Network, we used a selected content search, Federal Tax--Federal Tax Editorial Content--Standard Federal Tax Reporter (2014), to research the following laws: Section 331(a), 336(a), and 6901(a). We also used the Citator in CCH to review the facts and decisions shown in the liquidation cases of Kennemer and Al Zuni of Arizona.
By reviewing the state sales tax, and the income tax charged by thee three states, I can identify the type of tax that each one of them uses to acquire their revenue. Texas uses a regressive tax type, because it lacks of income tax revenue that divides each individual by brackets according to their incomes, while the sales tax charges everyone the same rate, regardless of their income, making this type of taxation a big problem for the poor. Utah also has a regressive tax because it charges a flat 5 percent from income Tax to e...
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For years, the United States government has been trying to find a way to lower the obesity in the country. However, the approach it is using, i.e. taxing unhealthy food, is not the most effective one. People are going to purchase whatever products they wish, whether the price is increased a few cents or not. Junk food options are already set at a more reasonable price than healthy foods, enticing people to buy these less expensive goods. Even though putting a tax on other products, such as tobacco, has served the intended purpose, food is a necessity humans must have for survival. Society is used to consuming foods they want, and will continue to do so. Putting a tax on unhealthy food will not necessarily lower the obesity rate because there are other factors that contribute to this problem. Moreover, taxing measures are usually intended for the collective benefit of society rather than the individual. They are usually perceived as another way the government uses to take money out of the citizens’ pockets. Ultimately, thinking that higher taxes on unhealthy foods will help curb down the obesity rate in the country would be similar to say that cost is the sole contributing factor to this public health problem. Imposing taxes will not help lower the consumption level because these foods will still have lower prices than healthier choices. Taxes do not impact the nutritional value of foods, and their only predictable effect is to help in generating additional revenue for the government.
Twomey, D. P., Jennings, M., & Anderson, R. A. (2011) Anderson’s business law and the legal
For each generation that grows up in America, there is always one thing that they all share, taxes. Individuals pay taxes on almost everything these days. Taxes are charged on purchases of food, goods, and even services. Taxes are also taken out of payroll checks each pay period and deposited into government accounts for use later. And lastly, at the beginning of the year when income tax is due, if an individual has done what is necessary, they will end up with a refund. If not, they can end up with a high tax repayment bill that leaves them wondering what went wrong. What if, however, there was a way to change the Nation’s taxation system? Would it be worth it to an individual to pay more for items instead of paying taxes at the end of the
Mallor, J. P., Barnes, A., Bowers, T., & Langvardt, A. W. (2010). Business Law: The Ethical, Global, and E-Commerce Environment (14th ed.). New York, NY: McGraw-Hill/Irwin.
William O. Douglas said, "Common sense often makes good law." Well that is what laws essentially are, rules and regulations that make sure common sense is followed. One could even say that laws are enforced ethics. Laws serve several roles and functions in business and society, and this paper will discuss those roles and functions.