Saturday, February 15, 2020

Topic to be selected from a list Essay Example | Topics and Well Written Essays - 5000 words

Topic to be selected from a list - Essay Example The government of United Kingdom introduced a scheme known as Sure Start in 1989 to ensure that children receive the best possible start in life (Thompson, 2010). This initiative was led by Gordon Brown, who was the chancellor of Exchequer during that time (Thompson, 2010). The goal of this program was to provide a good start to the children, so that they can build upon it in the future. The support is provided in terms of ensuring good education beginning from the early years; providing facilities for childcare; ensuring good health care and ensuring family support for children’s well-being (Roberts, 2000). Additionally, the project also has the larger goal of community development so that children can have a head start to in their adult life as a result of spending their childhood with a robust and healthy community (Roberts, 2000). This study takes a closer look at the contribution of Sure Start to the lives of children and families in the UK. It also attempts to assess the impact, the challenges and the future outlook related to this program. The study starts by documenting the origins and functioning of this scheme and then moves on the various contributions that it has made to the lives of children and families. Then, it also takes a look at both the local and national assessment of the scheme, the view of researchers and its future outlook. The performance of Sure Start has been under the scrutiny in recent times and scholars as well as the media have been debating on the effectiveness of this program. Hence, it is necessary to understand the ways in which this program may have had an impact on both The research is undertaken through a literature survey and review of available research and literature on the topic of project Sure Start. As such, numerous journal articles, books, newspaper articles, and authentic websites were perused and

Sunday, February 2, 2020

International Taxation - Transfer Pricing Research Paper

International Taxation - Transfer Pricing - Research Paper Example For the purpose of the subject under consideration, it is also assumed that the subsidiary company in the aforementioned group structure is a foreign company and the Parent is a local company. When the companies in the group structures are involved in transactions with each other, they put a price on the transaction. This price is termed as the ‘transfer price’. This can further be illustrated with the help of the following example: Company A, the parent company, is situated in USA and its subsidiary company, Company B is situated in UK. Suppose that Company A has outsourced its financial activities to its subsidiary company, which means that Company A does not have any staff which are performing finance related activities (such as preparing financial statement, filing tax return, involved in budgeting etc.) instead the finance department of Company B is performing these activities for Company A and in return is charging a fee. Although the owners of both Company A and C ompany B are the same, but still one company is charging a fee for performing a particular service to another company in the capital structure. Transfer pricing is not a legal activity in its substance, but its misuse can label it as abusive. Transfer mispricing is quite common in manufacturing concern all across the globe where the transfer of services are involved rather than the transfer of services. A safe estimate made by the economists and financial analyst presents the fact that around 60% of the international trade that place globally, is between the countries under the same corporate structure. In addition to this figure, the economists also put forward the fact that due to transfer mispricing, billions of dollars is lost for tax revenue. The tax authorities argue the fact that transaction between associated companies within a group should take place on arms length basis. The arms length price is the price at which two unrelated parties in the market would agree to proceed with the transaction. The arms length pricing is a result of genuine negotiation in the market. But usually what happens in the global market is that companies usually distort the transfer prices at which the transaction is recorded. This usually assists the companies in avoiding tax and report higher profit for the financial year. Illustrative Example No. 1 (all figures in USD)    Subsidiary Company (fully owned and controlled by the parent company)    Parent Company (Head Office of the Multinational)             Host Country (China) Home Country (USA)                            Price of good bought    Transfer Price    Selling price Total Case 1 100    200    300    Profit Before Tax 100 100 200 Tax Rate (%)[Ey.com 2013] 25% 40%    Tax paid 25 40 65 Profit after tax    75    60    135 Case 2 100    280    300    Profit Before Tax 180 20 200 Tax Rate (%) 25% 40%    Tax paid 45 8 53 Profit after tax    135    12    147 Ca se 3 100    300    300    Profit Before Tax 200 0 200 Tax Rate (%) 25% 40%    Tax paid 50 0 50 Profit after tax    150    0    150 In the first illustrative example, we are considering two companies situated in USA and China. The company situated in the USA is the parent company whereas the company situated in China is the wholly owned subsidiary company of the Parent. The Parent company is involved in the trading of FMCGs. The items that the company A sale to the general public is manufactured by the subsidiary