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Corporate Tax Planning V2

Assignment A

1. Differenciate between exemption and rebate?

2. Discuss the conditions that should be met to claim deductions against profits
and gains of business or profession under section 37(1)?
3. Explain the provisions regarding set-off and carry forward capital losses?
4. Differenciate between long term and short term capital gains?
5. Describe the provisions of law regarding advance payment of taxes in case of
company assessee?
6. Explain, how tax is calculated/computed on domestic as well as other than
domestic company?
7. What do you mean by Maximimum marginal tax, explain with examples?
8. Describe in detail the Capital gains ccount Scheme?

Assignment A
Case Detail :
Chasing Taxes
Indonesia and India have embarked on big, bold and historic hunts for hidden
assets. The moves come amid a global shift in attitude toward tax avoidance and
offshore holdings but the emerging economies have singular reasons for seeking
undeclared riches. Each wants fresh cash for much-needed infrastructure projects
and a chance for a fairer distribution of wealth.
In the last days of September, in the dark of 3 a.m., people began queuing outside
a single government building in central Jakarta. They were clutching financial
papers that in some cases exposed offshore accounts worth billions of rupiah. Two
months earlier, President Joko Widodo had launched a massive tax amnesty campaign
to repatriate hidden assets to Indonesia. As the first reporting deadline loomed,
crowds swelled into the office that handles the tax affairs of the countrys
wealthiest individuals and companies.
More than 10,000 people a day answered the presidents pitch in September: declare
assets now and take advantage of a discounted tax rate as little as 2% compared
to 25% and, in turn, be part of Indonesias future. Revenue from the nine-month
amnesty, continuing through March, is promised to build railway networks, ports and
airports in a country whose prospects, politically and economically, have been on
the ascent.
Widodo, who was elected in 2014, has cast the program as good for business and
pivotal to the next generation. Twice before Indonesia tried amnesties to lure
money back home but those efforts in 1964-65 and in 1984 failed, in part, due to
poor incentives. Now Indonesia has calculated that political stability and a
dramatic drop in the tax rate could help to bring in an estimated 11,400 trillion
rupiah ($851 billion) parked overseas.
We have a large amount of money outside, Widodo told a group of businessmen in
Jakarta this summer. What is most important now is to bring this money back to our
country. We need your participation right now to build the nation.
Indonesias call for revenue echoes across many countries in Asia where private
wealth has risen steeply in the past decade. New wealth accounts for about 60% of
the total wealth growth in the Asia-Pacific region excluding Japan and, by 2019,
the region is expected to account for 26% of all global financial wealth, according
to a recent Boston Consulting Group report. It is those potential taxpayers that
emerging economies want to rein in as partners in their next phase of development.
People streamed to banks in New Delhi to try to withdraw or deposit old currency
notes banned on Nov. 8. India has taken more radical steps this year, starting with
amnesty and then launching a wholesale assault on its shadow economy by banning
high-denomination bank notes. Life in the cash-starved society has morphed into a
kind of collective suffering. But both India and Indonesia see their experiments as
helping to secure economic ballast at a critical time to attract domestic and
global investment. Transparent accounting at home will help each country to prepare
for tougher global standards for financial information that will go into effect
next year.

Indonesias hunt for revenue is spurred by ambition for this country of 20 million
taxpayers. It has enjoyed 5% annual growth for the past few years. In order to keep
this growth momentum, the country needs to build and improve its infrastructure
such as airports and power grids. The government has estimated 5,500 trillion
rupiah is needed through 2019 for infrastructure; the state budget can likely cover
a quarter of that.
Amnesty became appealing first to trade associations, law firms and major
developers that liked the lower tax rate and possibly saw future government
contracts for big construction. Wealth managers said tax rates were locked in
depending on how early declarations were made. That sparked the September rush.
Just with 2% or 4%, you can bring the dark money under the sun, said a private
banker in Singapore. Once you declare amnesty, the money is no longer dark.'
1. Provide a brief summary of the case?
2. What common initiative both countries have taken?
3. What success you predict for the Indonasias call for revenues ?

Assignment A

1. A method of financing a business where money is received by the issuance of

shares in the enterprise.
Equity Capital
Demerger
Merger
Debt
2. Sales revenue less cost of sales, operating expenses, and interest, before taxes
have been paid.
EBT
EAT
PAT
EBIT
3. Persons who have left their country and live abroad.
Expatriate
NRI
Foreigners
Natives
4. Financial transaction whereby an enterprise sells its debt claims to a third
party in order to obtain cash
Factoring
Forfaiting
Accounting
Cash Management
5 lease is where the lessor is considered only as a financier.
Finance
Left
Right
Time
6. Any 12month period which is set for accounting purpose of an enterprise.
Accounting Year
Fiscal Year
Calender Year
Assessment Year
7. Part of economic policy which relates to taxation and public expenditure.
Monetary Policy
Fiscal Policy
Cash Policy
Exim Policy

8.. Property is also called as real property, immovable property comprises

land, houses and buildings.
Movabale
Fixed
Immovable
Liquid
9. Capital receipts are shown in the Balance Sheet on the .. side.
Above
Below
Asset
Liability
10. Winnings from lotteries, races etc. are taxable under the head Income from
other sources.
TRUE
FALSE
Sometimes
Cant Say
11. Wealth tax is to be rounded off to nearest multiple of.
1
10
100
1000
12. Tax is to be rounded off to nearest multiple of
Ten
Hundred
Rupee
Thousand
13. Year in which income is earned is known as. Year.
Annual
Taxable
Assessment
Previous
14. Aggregate amount of deduction under section 80C, 80CCC and 80CCD cannot exceed:
150,000
100,000
200,000
250,000
15. LLC stands for limited liability ..
Corporation
Company
Console
Centre
16. Tax and/or accounting convention under which the value of assets/liabilities is
adjusted to reflect fair market value of a specific date.
conventional tax rate
Sovereign Rate
Mark to market
Managerial
17. is an increase in the price of something, especially from the price a
trader pays for something to the price he sells it for.
Column-down
Column-up
Mark-down
Mark-up
18. Tax on mortgages usually in the form of a stamp duty levied on the mortgage
document.
Mortage tax
Document Tax
Implied tax
Annual Tax
19. A lack of due care or failure to do what a reasonable and ordinarily prudent
person would do under the given circumstances.
Accounting Fraud
Negligence
Accounting Mistake
Fraud
20. Obligation to persuade a court or other entity of the validity of a factual
assertion.
Branch Tax
Statutiory Tax
Burden of Proof
Compliance Tax
21. A tax imposed on an act, occupation, privilege, manufacture, sale, or
consumption.
Sales
Excise
Income Tax
IPR tax
22. Income-tax is an annual tax on ..
Royality
Income
charity
Commission
23. Generally, an income amount that relates to a future period and therefore can
be set aside and included in income for that period.
Asset
Liability
Surplus
Reserves
24. A deduction used to reduce net income for tax purposes.
Taxation
Liability
Write Off
Reserves Creation
25. Term generally used to describe a number of operations involving the
reorganization of companies.
Trial Balance
Merger
Acquisition
Take Over
26. Department of government generally responsible for formulating monetary policy,
implementing the tax laws, collecting revenue, etc.
Ministry of Accounting
Monistry of Commerce
Ministry of Finance
Ministry of Taxation
27. Is the gross income less deductible income related expenses.
Net
Pure
Total
Casual
28. Association of two or more person (individuals or companies) formed for the
purpose of making a profit.
Sole Propreitorship
JSCs
Strategic Alliance
Partnership
29. An intangible asset that represents the superior earning power of a business.
Asset
Liability
Goodwill
Pure Asset
30. A written application addressed to a court or judge, and stating facts and
circumstances relied upon as a cause for judicial action.
Filing
Petition
Application
Writ
31. Any 12-month period which is set for accounting purpose of an enterprise is
year.
Fiscal
Previous
Assessment
Monetary
32. A risk-management strategy to balance positions of different business units or
with unrelated third parties is called hedging.
Liberal
Expatriate
Foreign
Global
33. The period following the due date of taxes during which legal action for
recovery of delinquent taxes will not be instituted and interest will not commence
to run is . Period.
Flexible
Grace
Advanced
Extended
34. Reserves which are not disclosed on the balance sheet of an enterprise, either
by overvaluing debts or undervaluing assets are called reserves.
Fixed
Hidden
Flexible
Statutory
35. A tax applied at the same rate to all levels of income is . Tax.
Straight Line
Flat Tax
Forward
Fixed Tax
36. Amount of money received by persons or entities as compensation for damages or
for losses incurred.
Deflamation
Indemnification
Income Shifting
Income Spliting
37. Real property or personal property that is received by heirs.
Solely
Benefited
Gifted
Inheritance
38. A transaction among parties, each of whom acts in his or her own best interest
is called .. Transaction.
Arms Length
Attributable
Auxilary
Pending
39. Environment tax is commonly called as tax.
Green
Eco
Forest
White
40. Rule under which one is precluded and forbidden by law to speak against his own
act or deed.
Pestel
Escort
Estoppel
onograph

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