The Tax System In Usa And Egypt Finance Essay - Free Essay Example

Sample details Pages: 6 Words: 1868 Downloads: 3 Date added: 2017/06/26 Category Finance Essay Type Compare and contrast essay Did you like this example? The tax system of any country is born out of a tax policy. It plays a vital role in the fiscal policy of that country; be it Kuwait, Egypt or America. The tax system of different countries varies according to country and the government enforces certain additions, revision and review to the tax system of that country over a certain period of time. Don’t waste time! Our writers will create an original "The Tax System In Usa And Egypt Finance Essay" essay for you Create order Another characteristic of the tax system of a country is that it is flexible and continuously changes in order to adapt to the essentials of the socio-economic conditions. The tax system is also influenced by the designs of that tax system with regards to history, the political system and the economic system. In this report, we analyze the tax systems of two countries. One is America where the tax system is a complex and complicated system as there are different states which enjoys the freedom as specified by the federal system. The other country is Egypt, which has a Semi-presidential republic which implemented decreased corporate taxes resulting in a stated 100% increase in tax revenue. In the end, will be discussed on which one of the two systems are better and why. An overview of Tax System in United States and Egypt The codes of the tax are mainly pertained to the taxation of the ship owners, natural wines, vaccines and insurance companies. Upon a quick look, it is evident that the tax system will become more complex as the tax levied in states and cities are further complicated. On the other hand the Egyptian tax system comprises of two types of taxes. They are direct and indirect taxes. It was first introduced in 1939. From there, till now, the taxes have been imposed on business and labor gains and on agricultural land. Other tax laws were issued in the following years including an urban building tax in 1954; a customs regime in 1963; stamp duties in 1980; consumption taxes in 1981 which in was replaced by the General Sales Tax Law No. 11 of 1991; and a new income tax law in 1981 were introduced. This Income Tax Law was amended in 1993 by Law No. 187 of 1993. US tax system in America There is a principle of competition involved in the tax system of the USA. This means that there is a competition between the governments of the states and local which mainly relates to their rights to enforce personal and corporate income taxes. Thus it complicates the concept of tax law with that of the taxpayers and they will have to file returns of tax for all the three levels of the government as explained earlier. The tax burden in the USA is comparatively low for individuals, but for companies it is surprisingly high. Moreover, the fiscal system of USA allows the icon of what is known as competitive federalism. The dominion of tax is split among the federal, the state and the local governments. For example, the personal income tax is charged by all the three systems of governments i.e., by federal, the states, and even local communities. The burden of tax is therefore considerably different from region to region, both for individuals and for companies. To add more, the primary source of revenue to the federal government is the personal income tax. The personal income tax is generated hardly five times when compared to corporate income tax. By this, it is obtained by the states in the form of funding from both personal income tax and consumption taxes. On the other hand, the local governments impose the taxes on real and personal property. There is a enforcement of taxes by the local and state communities from 0-9.8%. This is calculated as a single-phase tax which is not in the case of federal government. The ability of a tax payer to pay the tax is governed by the ability to pay principle which is to put into practice in the shape of a progressive income tax scale which has various restrictions to itself. The highest rate of tax returns in the USA applies from USD 312,000 upwards. There is no differentiation made among different kinds of income, which is distant from capital gains, on which individuals pay tax at a special rate of 15%. Life in surance policies are taxed on their earnings. In the USA there was double taxation for the dividends until 2003. Accordingly, a company was responsible for corporate income tax the mainly based on its profits. Moreover, on the event of the distribution of this, it was compulsory for the shareholder to pay personal income tax without being able to claim a tax credit. Dividends like these are being taxable till now and are been paid at a rate of only 15% for the shareholder. Thus, the profits of companies that function in more than one state are taxed in the state of their origin. Another characteristic of the US Taxation is the debt regarding the corporate income tax. While calculating the corporate income tax the debt incurred by the company is compared with that of the alternative minimum tax (AMT). the AMT is charged at a rate of 20% on taxable income which has a special method of calculation and is payable if it is higher than the computed corporate income tax debt. However exemption are also established in the case of small companies who has an average gross revenue in the previous three tax years which has not crossed USD 7.5 m, and companies in the year they were set up. The income tax calculation of the United States is shown below: Table 1. 1999 U.S. Tax Receipts, by Source Source Amount (Millions $) Percent of All Taxes Federal Taxes Income Taxes 879,500 34.5% Social Insurance Taxes 611,800 24.0% Corporate Taxes 184,700 7.2% Excise Taxes 70,400 2.8% Estate Taxes 22,900 0.9% Total, Federal Taxes 1,769,300 69.4% State Taxes Sales Taxes 200,600 7.9% Property Taxes 240,100 9.4% Income Taxes 189,300 7.4% Corporate Taxes 33,900 1.3% Excise and Other Taxes 114,500 4.5% Total, State Taxes 778,400 30.6% Total, All Taxes 2,547,700 100.0% Tax System in Egypt The tax system in Egypt is different from that of the tax system in USA. In Egypt the corporate income and gains tax come under a new tax law which is law No. 91 which was introduced in 2005. According to this law, the corporations in Egypt are imposed corporate profits tax on their profits derived from their business in Egypt and abroad, if not in the case, the foreign activities are carried out through a stable establishment located abroad. Whereas the foreign companies have their head offices in Egypt are subject to tax only on their profits derived from Egypt. In the case of oil production companies, the tax levied is 40.55%. Whereas, there is a 40% tax to be paid by the Suez Canal Company, Egyptian General Petroleum Company (EGPC) and Central Bank of Egypt. The tax system of Egypt is divided into two groups. They are administration of a company and the dividends distributed. According to the administrative point of view, the companies must pay their annual income tax alo ng with their true financial statements and the supporting documents preceding the 1st of May every year or in the ending of four months from the financial year end. The tax payer should sign the tax return and he has the right to file a request if he needs extension from the due date of filing the tax if they can pay an estimated amount of tax. He must file the request 15 days before the due date. Moreover, the estimated tax due must also be paid before the due date. The government can grant extension up to 60 days, during which, the companies can file their tax return in 30 days. The dividends of a company are not liable to pay withholding tax as they are paid from the corporate incomes which can be taxed under the normal rules. However, there is an exemption of tax from the income derived from the overseas business of a company. They are also exemption of interest on bonds that are listed on the Egyptian stock exchange. Moreover, the corporate tax for the companies are comp uted according to the generally accepted accounting and commercial principles that are tailored for tax purposes by particular legal provisions which basically concerns depreciation, provisions, inventory valuation, inter-company transactions and expenses. In the case of a company which has its origin in Egypt and which exists outside Egypt, can have an exemption from foreign tax if they provide adequate documents. The losses that have been incurred outside Egypt will not be counted for the calculation of income tax. Moreover, the agreements that have been performed in other countries and in the Arab Republic of Egypt with guide the credit for taxes paid abroad on income subject to corporate income tax in Egypt. In the case of group of companies which are called corporate groups are taxed differently under the corporate income tax purposes. There is no provision for the Egyptian law for assessing the tax for corporate income tax under which group losses may be offset against prof its within a group of companies. Another characteristic of the tax system in Egypt is that it contains the facilitation of transfer pricing. These provisions are based on the principle called acirc;â‚ ¬Ã…“armacirc;â‚ ¬Ã¢â€ž ¢s lengthacirc;â‚ ¬Ãƒâ€šÃ‚ . According to this principle, the income of a company is adjusted by the tax authorities if its taxable income in Egypt is deducted as a result of the provisions of the contracts that are different from those that are agreed by unrelated parties. On the other hand, there is no withholding tax that is charged on the distributed dividends by resident companies irrespective of the residence status of the enterprise. There is a free market exchange system in Egypt. There are no interference from the central bank or the Ministry of Economy and the exchange rates are determined by the supply and demand. The income tax for an entity is levied on the worldwide income of the residents of Egypt. On the other hand, the non-resid ents tax is assumed on the tax on income that is either earned or realized in Egypt. Given below is the table which shows the tax recipients by income source. Table 2. Egypt Tax Receipts, by Source Income (EGP) Rate Up to 5,000 0% 5,001 to 20,000 10% 20,001 to 40,000 15% Over 40,000 20% Analysis According to the analysis, it can be said that the Egypt tax system is better than that found in the US system. This is because of the main fact that the tax system in US is diversified and the tax differs according to the state. On the other hand, the tax in Egypt is levied on the overall income universally in Egypt. Another reason is that the tax in the United States between the states has competition among them. An individual is subjected to tax for double taxation and there tax levied for everything whether the income derived inside or outside of the US. On the other hand, the tax system in Egypt; an individual is subject to tax only for the income derived inside Egypt. There is no withholding or transfer of tax. Whereas, in US there is withholding and transferrable tax and there is the intervention of the ministries in the levying of tax. On the contrary, in Egypt, there is no intervention by the bank or the ministries. This makes it better than the tax in United States.

The Tragedy Of Oedipus Rex And Shakespeare s Othello ...

The definition of a tragedy is a narrative poem or story that describes the downfall of a good man. Both Othello and King Oedipus Rex Fall into this class of literature, even though they were written by two totally different authors and in two utterly different time periods. These two works share several comparisons to every different, while having an honest quantity of variations similarly. Pride is characterized as one of the seven deadliest sins. Most pleased individuals will never see themselves as to be genuinely glad until they encounter the results of their pride. Sophocles and Shakespeare both location this situation in their plays Oedipus Rex and Othello. Through their honorability, their appalling imperfections, the fall these blemishes cause, and the misery and astuteness they get from these falls, Oedipus and Othello uncover the genuine character of the awful saint and demonstrate the staggering outcomes of pride. Othello and King Oedipus Rex, each featured main characters with distinguished power; Othello was a greatly revered general with an impeccable service record among the Venetian Army while King Oedipus was the newly appointed king of Thebes. Each of these characters was well revered and honored members of their community.King Oedipus and Othello had to overcome obstacles to realize their prestigious positions. Othello was an African member of his society at a time once the white race was viewed as superior to different races. While he was beloved as aShow MoreRelatedThe Origins Of Drama And Theatre2001 Words   |  9 Pagesaccredited to inventing theatre and drama. In Greece during that time, at the height of popularity, were the stories of the well known flawed heroes and their journeys. Ancient Greece Comedy was a popular type of play in Ancient Greece, only second to Tragedy. These types were described in many details in Poetics, by Aristotle. He expressed that a comedy is â€Å"an imitation of inferior people - not, however, with respect to every kind of defect: the laughable is a species of what is disgraceful. The laughableRead MoreEssay on Oedipus the King by Sophocles2040 Words   |  9 PagesThe play, Oedipus the King by Sophocles presents a grim hamartia caused from a terrible deed of long ago. Oedipus the protagonist is the powerful King of Thebes and held of high estate by the people of Thebes. As the terrible deed of Oedipus’s becomes apparent to both Oedipus and the City of Thebes his tragic flaw is slowly realized. The play will show â€Å"tragic power resides in human failing, hamartia, constantly underpinning any sense of the inevitable† (Walton). The play will show the author’s view

Emotions Essay Free Essays

How important are your emotions in your life? There are many factors involved in making decisions but the most important are the emotions. My whole life is full of decisions that I made using my emotions. Emotions are the best way to make decision because emotions give a different point of view of the reality, help to choose the right options, and they are the key to success. We will write a custom essay sample on Emotions Essay or any similar topic only for you Order Now Firstly; emotions always give me a different point of view of the reality. When I was eleven years old, I had a friend that was always in trouble. I decide to don’t talk to him anymore because he was a bad influence to me. But when I get home I feel bad for him. I decided to call him and invited him to my home. There I talked with him about his attitude. He told me that he acted like that because he did not have friends. For that reason he all the time was mad and sad. We spent the whole afternoon playing football. Then I realize the amazing person that the boy was. Since that day we have been friends and he made a lot of friends in school. That day my emotions let me see the right view of the reality. Secondly, emotions help me to choose the right options. When I was a kid my parents put me in a English course after school. No one of my friends liked that course; all of them decide to change it for a funnier course. I talked to my parents about that but they did not let me change the course. All of my friends told me to change the course without telling my parents. In that moment I have that decision in my hands. I realize that my parents put me in that course because they love me and I could not betray them. I felt the need to pay that love with responsibility. So, I decided to keep going to the English course. After many years, I can say that decision was one of the best decisions in my life. Thirdly, emotions are the key to success. I am senior in high school and I want to be a successful student at college. Looking for colleges is very stressful specially because some of them have really specific requirements. For me Rutgers was the university that I want to get accepted but their requirements were very high. I really want to get accepted but at the same time I was scary to get reject. But my emotions give me the confidence to see that I have a lot of qualities that make me an excellent student to get accepted in that university. Therefore, my emotions give me enough bravely to success. Therefore, the most important factors to make decisions are the emotions. I always make decisions using my emotions. And all of those decisions give me a lot of good moments. Emotions give us a different point of view of the reality, help us to choose the right options, and they are the key to success. So, it is your chose how your emotions will influence your life and your future. How to cite Emotions Essay, Essay examples

Emerging Application of Forensic Accounting for Detection of Frauds

Question: Discuss about the Emerging Application of Forensic Accounting for Detection of Frauds. Answer: Introduction (Research Topic): The emerging demand for forensic accounting is already acknowledged by many accounting practitioners in the field of accounting fraud detection (Williams 2014). In other words, it describes the engagement that results from actual or anticipated dispute or litigations (Ajao, Dada and Olaoye 2013). According to Nigrini (2012), forensic accounting helps to determine whether an individual or an organization has engaged in any illegal financial activities. Pedneault et al. (2012) assert that forensic accounting as a discipline encompasses knowledge regarding fraud, financial expertise and a sound knowledge and understanding of the business reality and the working of the legal system. Thus the role of the forensic accounting is gaining popularity worldwide by perceiving one of the more effective and efficient way to decrease and check accounting fraud. The purpose of the research is to explore the role of the forensic accounting in the area of detection of fraud in different types of organizations. Based on such research topic, the researcher will design the entire research process by containing research aim, objectives and research questions. Using different tools and techniques in the methodology section, the researcher will reach towards the research objectives and Research Problem: Nowadays, series of fraud have been committed both in private and public sector of the economy. Internal auditing is indeed not guaranteed to disclose all internal frauds of the organization because an internal auditor is the representative of government or organization. Then come the idea of external auditors, yet frauds are still being committed on regular intervals. The users of financial statements are often loss their confidence in the ability of the public accounting due to the occurrence of scandals, frauds, and failures and have increased the demand for forensic accountants (Awolowo 2016). The large organizations like Cadbury Aus Plc, West farmers have been found involved in fraud due to accessibility of high level management data in paper-based-system or a system of computer alike (Fiia 2013). Most of the frauds are human nature. This problem can be resolved by the way of knowing and informing about the application and role of forensic accounting in occurrences of the prevention of fraud. According to Huang et al. (2016) forensic accounting has played a significant role in the litigation and other legislative disputes fomented by these recent failures and frauds. Thus the fraud will be detected if the public is made to know the concept of forensic accounting. Research aim and objectives: Based on the problem of the research stated above, the research will address the significance of the detection of fraud by the application of forensic accounting. By aiming at this, the researcher will address the following objectives: To discuss the role of the forensic accounting on fraud detections To evaluate the differences between the roles of forensic accounting and that of the fundamental accounting in curbing financial crimes Questions of the Research: The research is expected to answer the following questions after the accomplishing the research work: What extent does forensic accounting influence on fraud detection? How does forensic accounting better than that of conventional accounting? How forensic accounting control falsified activities in a firm? Methodology of the research: According to O'Leary (2013), the methodology of the research gives the framework for conduct the research systematically. To make people informed about the application of forensic accounting and share the knowledge about its impact on fraud detection, the researcher will select the survey method for addressing the purpose of the study by gathering the adequate amount of primary research of data. The design of the research for this study is the exploratory research design because it relies on determining phenomena in their natural setting and deriving theories that fit the analysis of the data (Pickard 2012). To gain some insights of the research topic, the researcher wills select the sample for getting the responses from the concerned respondents. The information on numerous subjects of research will be gathered from audit and accounting practitioners who have previously applied or have a clear concepts about the forensic accounting. Research Process: The researcher will follow a progressive research approach by maintaining a typical process in the following manner: By presuming that the chosen research topic holds the relevance, the researcher selects forensic accounting as the research topic in the firm section. After investigating the problem statement, the researcher will formulate the aim, objectives and questions of the research in the following of the research. To address the research questions and identify the role of the forensic accounting on fraud detection, the researcher conducts methodologies in the next section. After collecting data from accounting practitioners considering those who hold detailed application knowledge about forensic accounting, the researcher will analyze the gathered data and information in the data analysis and analysis section of this research study. In this way, the researcher will get the research outcome addressing the research objectives in the last section of the research. Collection of data and analysis: This section will be displayed and presented the empirical results of the research (Palinkas et al. 2015). This study will attempt to analyze gathered data and information about the impacts of forensic accounting on fraud detection detailing the variables like falsification of accounts, forged cheques, cashiering frauds, theft of cash/suppression of lodgment and other miscellaneous frauds (Awolowo 2016). For getting responses from the survey process, the researcher will ask questionnaires about the effectiveness of forensic accounting in the area of fraud detection. The research will also ask responses about any current challenges that they faced during the practice of such accounting. Furthermore, the researcher will arrange face-to face interviews for getting more information related to this research topic. The researcher will collect data from people associated with international accounting bodies such as members of ICA of Australia. Expected Research outcome: By discussing the applications of forensic accounting services considering both private and public sector organizations of Australia, the study will identify the different types of fraudulent activities which could be resolved by an effective application of the forensic accounting. The ineffectiveness of the forensic accounting services by corporate organizations will get a strong signal about the significant role of the forensic accounting in maintaining the corporate governance. References: Ajao, O.S., Dada, S.O. and Olaoye, S.A., 2013. Application of forensic accounting technique in effective investigation and detection of embezzlement to combat corruption in Nigeria.Unique Journal of Business Management Research,1(4), pp.065-070. Awolowo, I.F., 2016. Financial Statement Frauds: The Need for a Paradigm Shift to Forensic Accounting.system,7(10), p.23. Fiia, F., 2013. Forensic accounting: A tool for fraud detection and prevention in the public sector.(A study of selected ministries in Kogi state).International Journal of Academic Research in Business and social sciences,3(3), p.1. Huang, S.Y., Lin, C.C., Chiu, A.A. and Yen, D.C., 2016. Fraud detection using fraud triangle risk factors.Information Systems Frontiers, pp.1-14. Nigrini, M., 2012.Benford's Law: Applications for forensic accounting, auditing, and fraud detection(Vol. 586). John Wiley Sons. O'Leary, Z., 2013. The essential guide to doing your research project. Sage. Palinkas, L.A., Horwitz, S.M., Green, C.A., Wisdom, J.P., Duan, N. and Hoagwood, K., 2015. Purposeful sampling for qualitative data collection and analysis in mixed method implementation research. Administration and Policy in Mental Health and Mental Health Services Research, 42(5), pp.533-544. Pedneault, S., Silverstone, H., Rudewicz, F. and Sheetz, M., 2012.Forensic accounting and fraud investigation for non-experts. John Wiley Sons. Pickard, A., 2012. Research methods in information. Facet publishing. Williams, J.W., 2014. The private eyes of corporate culture: The forensic accounting and corporate investigation industry and the production of corporate financial security. InCorporate Security in the 21st Century(pp. 56-77). Palgrave Macmillan UK.