Category: taxes

Introduction

It could be hardly doubted that the modern taxation system is a significantly complicated subject. Many aspects of this system, such as vast differences in tax rates and tax treatment of corporate income in different countries, are continuously investigated and elaborated on (Arel-Bundock, 2017). Another important part of the question is numerous strategies of tax avoidance (which is also referred to as tax aggressiveness), which are employed by multinational corporations (McClure, Lanis, & Govendir, 2016). This paper aims to dwell upon several issues, including previously mentioned problems along with the use of the Double Irish and the Dutch Sandwich by Google, Google’s negotiation with the Internal Revenue Service, and Microsoft’s use of Irish subsidiary to cut the company’s U. S. taxes. Based on the investigation of the given questions, a conclusion will be made.

Differences in Tax Rates and Tax Treatment among the Countries

First of all, it is essential to discuss the question of why the taxation rates and treatment of corporate income vary so dramatically among different countries. In general, “taxation of business income is always a contentious public policy issue” since numerous parties are involved (Griffin & Pustay, 2015, p. 530).

The Use of Tax Havens by Multinational Corporations

It is possible to mention that the ability of multinational companies and corporations (MNCs) to lower their tax burdens is vastly based on the strategic use of transfer prices (Griffin & Pustay, 2015). Also, this ability is significantly facilitated by the existence of a tax haven, which is the term referred to a country that imposes little or no taxation of corporate income (Griffin & Pustay, 2015). Such states, instead, impose a small fee for a multinational corporation (concerning the income rate of an average MNC) to establish a fully owned subsidiary in a tax haven. Further, an MNC manipulates different types of payments, including “transfer prices, dividends, interest, royalties, and capital gains,” between its separate subsidiaries to lower the corporate income taxation (Griffin & Pustay, 2015, p. 526). As result, the tax rates of multinational companies which are using the tax haven scheme are significantly lower than those of the companies, operating in high-tax countries. It could be additionally mentioned that the globalization process has an immense impact on the development of corporate tax competition in numerous states and the growing rate of tax avoidance by MNCs (Farnsworth & Fooks, 2015).

Political Reasons for Tax Rates Differences

As it was mentioned in the previous section, there are vast differences in tax rates and tax treatment among different countries. Another reason for such variety that should be mentioned is different domestic policies, implemented by the governments. It is argued that, in the majority of cases, politicians are preoccupied with the creation of new workplaces and tax revenue, and they tend to change their countries’ tax codes if such actions stimulate the local economy (Griffin & Pustay, 2015). Therefore, corporate income taxes vastly depend on the political course of the state and its overall economic condition. For example, the federal corporate income tax rate is 35 percent in the United States, 16.5 percent in Canada, and only 12.5 percent in Ireland (Griffin & Pustay, 2015, p. 530). Additionally, tax havens, which were previously mentioned, do not impose any tax at all in the majority of cases. The aggregate of the enlisted reasons serves as a foundation for numerous opportunities and strategies which are used by multinational corporations to significantly lower their tax rates. The following section will discuss the implementation of the tax avoidance strategy by Google.

The Use of Double Irish and the Dutch Sandwich by Google

Since the general information about the reasons and opportunities for tax avoidance is given, it is essential to discuss the implementation of the strategy used by Google corporation to lower its corporate income taxes. This approach is vastly based on the use of the Irish taxation code, which is significantly different from the United States Code. For example, “the effective rate on royalty income imposed by Ireland can be as low as zero” (Griffin & Pustay, 2015, p. 530). Additionally, Ireland offers significantly vast tax credits for research and development along with the exceptions for the intellectual property revenue (Griffin & Pustay, 2015). These factors contribute to the emerging of Google’s tax avoidance strategy, implemented primarily under the Irish code.

Further, it is possible to explain how Google’s scheme of lowering its corporate income tax works. First of all, it is essential to mention the immense importance of the company’s advance price agreement with the U. S. Internal Revenue Service. This agreement established the terms under which Google can “transfer its intellectual properties to its foreign subsidiaries” (Griffin & Pustay, 2015, p. 531). According to the agreement, Google licensed its intellectual property to its wholly-owned subsidiary, Google Ireland Holding, which is managed in Bermuda (making it a nonresident corporation, which is not governed by an Irish taxation law). It possesses an Irish resident enterprise, Google Ireland Limited (Griffin & Pustay, 2015). These two subsequently dependent companies are referred to as Double Irish. Further, Google Ireland Limited transfers its profits to another Google subsidiary, Google Netherlands Holdings (which is referred to as Dutch Sandwich), in the form of royalties (Griffin & Pustay, 2015). Google Netherlands Holdings then transfers almost all of the fees to Google Ireland Holdings, whose profits are not taxed due to its residence in the tax haven. Therefore, an immense part of Google’s corporate income remains free from the tax code of the United States.

Microsoft’s Use of Its Irish Subsidiaries

Furthermore, it is possible to discuss how Microsoft corporation uses its subsidiaries in Ireland to lower its U. S. taxes along with the influence of such use on the Irish economy. The scheme which is employed by the corporation is relatively similar to Google’s strategy of the Double Irish and the Dutch Sandwich (McClure et al., 2016). Microsoft established its subsidiary in Ireland, Round Island One Ltd., which localizes Microsoft products for European, African, and Middle-Eastern markets (Griffin & Pustay, 2015). Then Round Island One Ltd. licenses the localized products to its subsidiary, Flat Island Company, which is also located in Ireland. Earnings of the latter subsidiary are taxed at a 12.5 percent corporate income tax rate, which is a relatively low rate compared to the U. S. taxes (Griffin & Pustay, 2015). Round Island One Ltd. revenues are characterized as active income by the U. S. government, which allows Microsoft “to take advantage of the IRC’s deferral rule and to avoid U. S. taxation of that income” (Griffin & Pustay, 2015, p. 531). Concerning the influence of these actions on the Irish economy, it should be noted that Ireland welcomes the establishment of foreign subsidiaries such as factories and service facilities since it stimulates local economic growth.

Conclusion

In conclusion, it is possible to state that there are numerous schemes of tax avoidance, including the use of tax havens and foreign countries’ different taxation laws. This paper analyzed the use of such strategies by Google (the Double Irish and the Dutch Sandwich scheme) and Microsoft’s subsidiaries. It is possible to state that the implementation of these tax avoidance methods significantly harms the U. S. economy.

References

Arel-Bundock, V. (2017). The unintended consequences of bilateralism: Treaty shopping and international tax policy. International Organization, 71(2), 349-371.

Farnsworth, K., & Fooks, G. (2015). Corporate taxation, corporate power, and corporate harm. The Howard Journal of Crime and Justice, 54(1), 25-41.

Griffin, R. W., & Pustay, M. W. (2015). International business: A managerial perspective (8th ed.). Pearson.

McClure, R., Lanis, R., & Govendir, B. (2016). Analysis of tax avoidance strategies of top foreign multinationals operating in Australia: An expose. Retrieved from cdn.getup.org.au/1507-Aggressive-Tax-Avoidance-By-Top-Foreign-Multinations.pdf

Personal Income Tax is the amount of money received by the government from a person’s income. It deals with the taxation of the individual’s total earnings and is charged progressively (Cordes 296). The person being taxed is in a business that either involves partnership, sole proprietorship, undivided estate or a non- juristic entity. However, the disadvantages of a personal income tax seem to have more weight compared to the advantages. In addition, there is a liability to a personal income tax and the responsible tax paying entity must compute, file and pay tax as per the rules of the state.

Arguments for Personal Income Tax

The Personal Income Tax uses progressive taxation and allows for a wealth distribution (OECD 38). It is directly proportional to income earned because a person earning 10000 US dollars is charged more than the one earning per 1000 US dollars. In addition, the system is more equitable compared to the consumption tax. For instance, it allows for reduced taxation on important goods like vehicles, giving low earners the privilege of low taxation. Furthermore, the tax method is important since the poor people make the majority of the society. It also helps in the regulation and control of the corporate and personal profits. For instance, tax policy makers prevent greedy corporations and unscrupulous individuals from earning illegally, by forcing them to account for their money.

The taxation method allows the government to enjoy a reliable income stream (OECD 38). For instance, in scenarios where there is 15% unemployment, 85% of the population give income to the government. The system allows the state to stabilize its income stream even during a depression. In addition, the taxation system supplements the expenditure tax in the superior infrastructure development.

Individual-based income taxation is easier compared to a situation where the individual decides about the kind of deductions to be processed (OECD 39). The pay slips used are few and easy to analyze, which is contrary to consumption tax where people have to save all the annual purchase receipts to quantify their tax. However, personal income tax is more flexible because it gives people an opportunity to claim tax return deductions such as child care expenses and property losses.

Arguments against Personal Income Tax

Personal income tax implementation is very complex, especially when used to regulate corporations and the wealthy people in the society (Shome 149). It also entails the use of several resources to put in place of a system that controls and monitors the entities. In addition, the government is forced to use vast resources to enforce the tax code in each line. For instance, in the USA, the IRS needs an approximate of ninety thousand tax accountants. The tax audit industry and the IRS may be of more value economically, if they were to handle other issues.

The accountants, in the personal income tax, consult wealthy and big corporations on how to address the loopholes in tax policies. In return, the entities that ought to be the major tax issuers, turn to be the opposite. For instance, the wealthy in the society can afford expensive tax consultations, but use the opportunity to deceitfully avoid and evade taxation. Consequences are that there are inequitable taxations because employees are charged more than their bosses in such scenarios.

The Personal income tax can lead to financial hardships among the low income earners in the society regardless of the amount deducted. The phrase ‘lower deductions’ is relative and, therefore, might be a huge sum to some of the low-income earners. For instance, an individual who tries to make a living on a day-to-day basis, may find it difficult to have an average lifestyle, following any deductions on his or her income (Shome 149).

Personal Income Tax tampers with the citizen’s financial freedom since it dictates how the money should be used. It decides what to deduct despite the consent of the income owner, thus becoming a dictatorship model. In addition, it can be seen as a policy against the rich and favoring the poor in the society. The Personal Income Tax also reduces the moral of the citizens who might need to work hard with its progressive nature. It makes some of the citizens feel the act of paying taxes as burdensome and in the process become less productive. This leads to a fall in the economy due to fall in productivity. However, Laffer curve can be used to explain the trade-off between tax revenue and work (Shome 150). The people being paid through cash-at-hand method can evade taxation. Income taxation is, therefore, only effective when dealing with the formally employed.

In conclusion, if I were a legislature I would vote for the adoption of the income taxation in my state. The primary reason is that the state needs resources to be able to progress. Furthermore, income tax provides an opportunity for a stable revenue source. In addition, the fact that the public cannot decide on when to pay the amount, makes the source reliable.

Works Cited

Cordes, Joseph J. The Encyclopedia of Taxation & Tax Policy. Washington: Urban Institute Press, 2005. Print.

OECD. Fundamental Reform of Personal Income Tax. Paris: OECD, 2006. Print.

Shome, Parthasarathi. Tax Policy Handbook. , Washington: Tax Policy Division, Fiscal Affairs Department and IMF, 1995. Print.

Introduction

Property tax, an annual tax on the real property, has been in existence for more than three millennia. It is found most commonly on the market value concept. Its base may be the land and buildings or just the land only. The strengths and weaknesses of this type of tax are well known since it’s common globally and is a subject of a political debate (Hoff, 1991).

This paper therefore seek to explain how the rate of savings in a less developed nation can be increased using the property tax. It will also highlight the roles that can be attributed to the property tax in encouraging the foreign investors to invest in the nation. Additionally, the paper will recommend other features of an economic system that may be implemented by this nation in order to achieve its economic objectives.

Roles assigned to property taxes

As an economic advisor, I would recommend a property tax that is administratively and technically easy to maintain and implement in all the circumstances. The property tax should be able to aim a cost yield ratio of 2% or even less making it cheap to administer. The property tax implemented should be secure in that it’s almost impossible to evade, the collection success rates should be at a minimum of 95% which is easily attainable. The transparency of the tax system should be evident in the property tax to ensure its affectivity (Hoff, 1991).

The property tax should be in such away that the public understands it since understanding the market value concept is easy whether it is a rental value or capital value making its basis of assessment more appreciated. The property tax should ensure that there is a better correlation between the ability to pay and the assessed value.

The tax should also be marginally progressive and therefore need to be designed correctly. The property taxes should be well suited like a source to the revenue of the local governments generated locally; nevertheless it should be buoyant and predictable (Bahl, 1992).

Economically, I’ll assign some other major roles to the property taxes. These include: acting as a major source of local revenues; the property taxes should be employed as the main source of revenues generated locally since it is geographically defined.

It may be possible to use local sales taxes and local income taxes in generating the revenue for the local government but the two have administrative difficulties. Other sources may be rents from the properties owned by the government. However, property taxes still remain the major source of revenue in such areas since it is easier for the government to modify than it is to adjust the rates of income taxes (Hyman, 2008).

As a primary source of revenue; property tax should be able to play a vital role in the autonomy and decentralization of the local government.

Where there is full local government decentralization, the power to independently raise revenue is incorporated which allows the government to use such funds as they deem fit: as a support for other functions; the property tax should be able to be used by other bodies and agencies in assessing the value lists attached to properties. Some bodies that may find it relevant include drainage boards, water bodies and electricity which assess the charges imposed on such commodities (Bahl, 1992).

Features of economic system to be implemented

A developing nation willing to increase the savings of its citizens and the investments by the foreign investors ought to implement favorable economic systems that suit its objectives. In this case, some of the features of the economic system that I as an economic advisor would recommend for implementation include:

• An economic system that facilitates decentralization and gives a basis for local autonomy
• A system that ensures an economic use of the available land
• An economic system that provides the base of revenue for a particular function authorities
• A system that reduces property and land prices hence facilitating land access by the public
• An economic system that can be applied to industrial, commercial and residential properties as well as buildings and agricultural land located in the rural areas (Hoff, 1991).

Conclusion

In summary, Property tax is an annual tax on the real property. It is found most commonly on the market value concept. The land and buildings or just the land only are its major bases. The strengths and weaknesses of this type of tax are well known since it’s common globally and is a subject of a political debate. This paper has highlighted major roles of property tax as; the major source of local revenue, primary source, contributing to functions of other bodies and as a valuation list.

The paper has therefore described how the rate of saving of a less developed nation can be increased using the property tax. It has also highlighted the roles assigned to the property tax in encouraging the foreign investors to invest in the nation. Eventually, the paper has recommended the features of an economic system that may be implemented by this nation in order to achieve its economic objectives.

References

Bahl, R. (1992). Urban Public Finance in Developing Countries. New York: Oxford University Press.

Hoff, K. (1991). Introduction: Agricultural Taxation and Land Rights Systems. The World Bank Economic Review, 5(1): 85-91.

Hyman, D. N. (2008). Public finance: A contemporary application of theory to policy (9^th ed.). Mason OH: South-Western Publishing, Cengage

Every citizen has some responsibility or the other living in a country. For instance paying taxes on time is a very important responsibility which must be fulfilled by every citizen irrespective of the country that the individual is residing in. The tax collected by the government is used for the development of the country. The money is usually spent in construction of roads, hospitals and other useful buildings. A large part of the money is also spent on research so as to ensure progress and growth in the country. Hence it becomes imperative to pay tax in time. This paper will throw light upon the benefits of reducing the tax, a comprehensive analysis of how it can impact the lives of individuals will be presented in this paper.

The Impact of Low Tax on the Family Life of an Individual

Lowering the tax will benefit the lives of hundreds of thousands of people all across the globe. Some people are very bad at financial planning and hefty tax can break them down within no time. Lowering the tax will provide a lot of relief to such people. People with majuscule family find it really hard to pay tax and lowering the tax will help such people immensely. The needs of human beings are constantly on the rise and it is high time to reduce the tax, even a small reduction will be much appreciated by people all across the globe. The money saved can be spent of countless things, for instance that money can be used to buy a small automobile, a family that has 4 members but have no proper means of conveyance will surely benefit from the reduction of tax. This will also make several people who have two wheelers less vulnerable to accidents. When they buy a small automobile, they will become much safer than earlier.

Investment

Reducing the tax will encourage the practice of investing among the people. Money saved by the people can be invested in thousand things. Stock market is a very good area to invest in. This is a very good time to invest because recession has brought down the value of several companies that are ought to bounce back. Money invested in stock market will stimulate the economy of a country, lowering the taxes will have several other benefits too. Real estate is another glorious prospect, money saved can be out into real estate and the value of land has depreciated a lot because of recession, it is ought to rise in the near future. Mutual funds are another lucrative option and there are several other options that an individual can invest in and make a fortune. Once the practice of investing is inculcated among the individuals then there is no stopping the economy of that particular country. The economy will inevitably witness higher growth than ever. Lowering the tax will significantly improve the standard of living of the people; they will no longer have to sit calculating what fits in their budget and what doesn’t. The demand for luxury goods will go up and so will the prices, this whole scenario will improve the lifestyle of the people and it will also promote the habit of saving and investing in them, what more can a government ask of its citizens. There will be prosperity in the country and the same will motivate the people to work very hard, this will again work in the benefit of the economy. For instance the people in Japan are believed to work the hardest when compared to the people in any other country, this is the only reason why Japan is way ahead when it comes to innovation, similarly lowering the tax will motivate the people to work really hard for the government and most importantly for their comfortable survival.

Conclusion

Lowering the tax certainly makes sense and any government looking to transform the lives of the people in a county must lower the taxes. The paper has already thrown light upon several advantages of the same. This change will also help in eliminating poverty in a country to some extent, when people will have enough to take care of their needs, they will surely start thinking about the other people and this will inculcate a very good feeling among the people. This will make a nation prosper and this will eliminate the suffering of the people to a large extent. People will start making good decisions like investing in stock market; mutual funds, real estate etc and many people will end up becoming millionaires, the more rich people in a country, the better. The rich people will do something or the other for the government and this gratitude will transform the fortune of that particular country. After looking at several positives, it is highly advisable to lower the taxes and to enable the people to have a very good life.

Introduction

Property tax rates are an essential source of revenues for the majority of local governments which ensure their local fiscal autonomy. The procedures of determining the property tax rates are complicated and extremely important for the functioning of the internal financial administration in general.

In most cases, the property tax rates are calculated based on the market value of the property. However, in particular cases, due to the specifics of the situation, this method can be inappropriate.

This paper will analyze the complex process of quantification of property tax rates for the owners of Habitat for Humanity houses, detect the main inconsistencies in the current procedures, provide two arguments in favor of giving this category of taxpayers with a tax break and two arguments opposing this decision and offer a resolution for the existing problem.

Quantification

The property tax bills received by taxpayers combine some rates imposed by different jurisdictions and can be compared to a layer cake. Similarly, the process of quantification of the property taxes paid by the owners of Habitat for Humanity houses in a particular municipality is somewhat complicated and depends upon a wide array of influential factors.

The rate of property taxes is defined by property tax administration, consisting of the property assessors determining the value of parcels, the local bodies responsible for evaluating the amounts of money which are needed for the budgets of particular jurisdictions and should be taken from the property tax revenues, auditors calculating the property tax rates for different authorities and treasurers collecting the taxes and distributing them among the corresponding governments.

One of the primary goals of the property tax administration is to measure property value and adjust it to the taxpayers’ capability to pay the tax. Market value is the commonly accepted standard used for appraising the property (Mikesell, 2010, p. 496). Market value can be defined as the price at which the property could be sold in a competitive and open market.

Therefore, the quantification of property taxes paid by owners of Habitat for Humanity houses in a particular municipality depends upon the market value of these houses and the decisions made by the local jurisdictions.

However, taking into account the specifics of the Habitat for Humanity programs in which partner families from vulnerable categories of population are selected and then take part in building and/or restoring the houses they will live in and receive zero-interest mortgages for buying these houses, it can be stated that there is a substantial deviation of the acquisition price from the market value.

Arguments in favor of a property tax break

Taking into account the inconsistency in the current system of determining the real property taxes paid by the owners of the Habitat for Humanity houses due to which the property taxes become an overwhelming burden which can tax people of their homes, it can be stated that a property tax break is required for adjusting the tax rates to the house owners’ capability to pay.

The first argument for developing the appropriate tax break programs for the owners of the Habitat for Humanity houses is the deficiency in the procedures of measuring the tax breaks. The use of the standard of the market value based on the principle of possibility to use the property for different purposes for determining the tax rates for this category of taxpayers is inappropriate.

Because of the deed restrictions preventing the owners of this property from selling their houses or getting home equity loans before their 20-year mortgages are fully paid. Therefore, the principle of the potential use of this property for profit is excluded because of the deed restrictions and the market value is not related to the case of the Habitat for Humanity houses.

The second argument for establishing a tax break for the owners of the Habitat for Humanity houses is the patent unfairness of the current system of determining the tax rate for this category of property taxpayers. The existing provisions contradict the constitutional requirement for equal protection.

Taking into account the fact that the initial objectives of the Habitat for Humanity program were to provide the low-income categories of the population with opportunities to buy affordable houses, it can be stated that the tax system contradicts the main principle of this program.

It understates the efforts of the Habitat for Humanity (20 year zero-interest mortgages) and hundreds of hours of ‘sweat equity’ the owners spent on building work due to which the residents received an opportunity to buy houses at the cost significantly different from their market value.

Arguments against a property tax break

Regardless of the apparent deficiency in the current tax system determining the property tax rates for the owners of the Habitat for Humanity houses, the application of a property tax break for this category of taxpayers can have some negative implications.

The first argument against giving a property tax break to owners of Habitat for Humanity houses is the potential inconsistency in the tax administration functioning as a result of such a decision (Schick, 2000, p. 151). The property tax is the source of revenues used by the local jurisdictions for financing the schools.

Consequently, the reduction of the property laws in particular spheres can result in deficits of school financing (Mikesell, 2010, p. 485). Therefore, a property tax break given to a specific category of taxpayers can lead to the imbalance of budgets and deficits in certain expenditures covered at the expense of particular tax revenues.

The second argument against giving a tax break to the owners of Habitat for Humanity houses is the destruction of uniformity and the possibility of imposing different tax rates for similarly situated individuals. Tax breaks result in the gradual erosion of the integrity of general taxes, which in their turn have some negative consequences.

Rubin (2009) stated that tax breaks result in a reduction of revenues and require cutting back spending, searching for alternative sources of revenues or permitting constant budget deficits (p. 68).

Additionally, the tax break for the owners of Habitat for Humanity houses can produce the impression of unequal treatment of equals upon other low-income citizens. It can encourage different low-income categories of population to look for the opportunities to reduce their tax payments, further erosion of the integrity of the tax system and budget deficits.

Suggestion resolution

As can be seen from the case under analysis, the current property taxes based upon the market value of property overburden the owners of Habitat for Humanity houses and should be reconsidered.

Taking into account the fact that the owners of these houses pay higher taxes than their mortgage payoffs and some of them have to leave their homes because of the high fees, it can be stated that there are significant inconsistencies in the current tax system.

Analyzing possible negative implications of giving a tax break to this category of taxpayers, it can be stated that a substantial reform instead of local measures are required for improving the existing situation.

One of the possible solutions which can be suggested for adjusting the property taxes to the owners’ capability to pay is to change the procedures of determining the tax rates and using the acquisition-value assessment instead of the market value standard.

Additionally, changes need to be made in the ordinary appraisal procedures, which assume that an owner can use the property for different for-profit purposes. Therefore, it is recommended to take into account the specifics of the case of the owners of Habitat for Humanity houses, including the circumstances under which they receive this property and the restrictions in use of these houses imposed by Habitat for Humanity.

Generally speaking, analyzing the case of the owners of Habitat for Humanity houses, it can be stated that the acquisition value assessment procedure can be an effective alternative to the commonly used property tax rates based upon the market value of property in determining the property tax rates for low-income property holders.

Conclusion

Bearing in mind the importance of property taxes as a source of revenues for the local fiscal administration and taking a close look at the principles of taxation of the owners of Habitat for Humanity houses, it can be concluded that a resolution of the existing problem is not an easy one.

Though the inconsistency in the existing procedures of determining the tax rates contradicts disregards the specifics of the situation of the holders of Habitat for Humanity houses, a tax break for this category of taxpayers can have several negative implications.

Therefore, more fundamental changes in determining the property tax rates are needed, and using the acquisition-value assessment instead of the market value standard can be one of the possible resolutions.

Reference List

Mikesell, J. L. (2010). Fiscal administration: Analysis and applications for the public sector (8th ed.: 2010 custom edition). Mason, Ohio: Cengage Learning.

Rubin, I.S. (2009). The politics of public budgeting: Getting and spending; borrowing and balancing (6th ed.). Washington, DC: CQ Press.

Schick, A. (2000). The federal budget: Politics, policy, process. Washington, DC: Brrokings Institution.

The Purpose of Studying the Organizational

There is no secret that the recent “Fat Tax” has caused quite a stir among the Danish public, and especially among the owners of the Danish food producing enterprises (Cooper, 2012). Analyzing the effects of the reform in the context of a specific organization and taking a closer look at the changes that the Fat Tax has inflicted on it, one can possibly decide whether the Danish companies in general and a specific food-producing organization in particular can survive the changes.

Brief history about the company

KiMs has been around in the world of the Danish fast food production for quite a while. Offering chips and snacks, the company was initially an affiliate of the Finnish headquarters. However, as the sales grew, the company expanded, taking over the fast food market in the Scandinavian countries and ousting the rest of the fast food services (KiMs, 2012).

The organizational context for change

Previously focused on the production of typical fast food, KiMs produced the food that had been enjoying wide popularity among the Danish people from all walks of life, starting with teenagers to businessmen and office employees. In addition, the source materials for producing fast food with sufficient amount of fats allowed for a flexible financial strategy.

However, after the Fat Tax reform, KiMs was to lose not only a part of their revenues to the government tax companies, but also a considerable part of their clients, mainly because fast food was considered not appropriate for healthy lifestyle.

Therefore, KiMs had to reform its organizational process, or, to be more exact, the production stage had to be changed greatly. The company had to come up with a substance that could replace fats, which, in turn, could have influenced the entire production process and cost KiMs a lot of money.

The driving forces behind the change

As it has been mentioned previously, the key driving force behind KiMs’s organizational change was the new tax that was imposed on the companies producing food that contained more fats than corresponding regulations allowed. As a matter of fact, KiMs offers a perfect example of how an organizational change concerning such an important element as the production process can be carried out without the company suffering any significant losses.

As the KiMs’s spokesman, Andersen, said in his interview, “We have shifted all our crisps and snacks to sunflower oil” (Obesity and the Fat Tax Issue, 2011). This is exactly how a company should react to the changes that the government or any other force imposes on it. Without wasting their time on arguments, the company has chosen the least painstaking and the most reasonable way of shaping their production to meet the new requirements.

The parties and stakeholders involved

According to the existing record, the head of KiMs managed to handle the situation on their own without attracting any parties. As for the company stakeholders, Andersen claims that the change is not going to harm them, since neither the company, nor its reputation has suffered any damage. Especially in the light of the recent abolishment of the additional taxation of food, it is clear that the company will have to undergo a number of changes.

Moreover, the fact that the taxation of the food products containing fats will be cancelled (Denmark scraps fat tax in another Big Food victory, 2012) means that the company will have to undergo an additional change, which is going back to the traditional financial strategy and rearranging its production system. Thus, “Fat Tax” was developed with a good intent, yet the organizational changes that it drags test the company’s viability in a rather harsh way, making it shift from one strategic plan to another.

Reference List

Cooper, B. (2012). Nutrient taxes: European moves on nutrient taxes fuel debate. Web.

Denmark scraps fat tax in another Big Food victory (2012). Web.

KiMs (2012). About KiMs. Web.

Obesity and the Fat Tax Issue (2011). Web.

Introduction

Investing in business activities is very easy when an individual has adequate capital and will to venture in income generating activities. However, this is usually not the only guarantee that a business will manage to dominate the available market (Tolliver 77). This essay describes a discussion between the researcher and a manager of a company to explain ways of improving its mission statement to promote sales.

Background

Liberty Tax Services is a company that offers financial services to its clients and makes profit through its tax related activities. Its mission statement is somewhat a layman’s approach to issues that trouble people every year as they struggle to file and submit their tax returns. In addition, it is necessary to explain that this statement is backed by other phrases that seem to entertain rather than inform its clients about the services offered by this company. This essay describes an interview conducted to establish the reasons why the management of this company decided to ignore all norms and jokingly use phrases that seem to belittle the quality of services offered by this company. The discussion was held between the researcher and manager or this company.

Interview with the Manager

The mission statement of Liberty Tax Services is a clear declaration that this company is set to establish friendship with its clients and make them enjoy its services. There were numerous stickers and notices on the walls of this company that invited clients to want to know more about how it manages to smile even though this is not a conventional way of doing business. The secretary was happy to greet and welcome clients to her table and assured them that they were at the right place.

I was allowed to see Mr. Simon Njogu, the manager, and after we shook hands he told me that I did not have to address him using his title (the manager). This surprised me as I wondered how such a big company could have a modest chief executive officer. He rushed to his desk and grabbed a diary while explaining to me that food was getting cold. I later understood that he was referring to my presence as food and that he should serve me before I became impatient. He was a busy person and so I had to book an appointment with him and submit my questions before that day.

He appreciated the fact that people critiqued this company about its mission statement and said that it did not portray seriousness in the provision of quality services. He was quick to downplay this belief and claimed that mission statements did not perform any role in the company and that there was no need of having a powerful one that uses strong terminologies if workers could not perform their duties according to how they promised their clients. He claimed that simplicity is sometimes a powerful tool that makes people to think about serious issues without straining their minds. He argued that people were usually very tired because of working hard to make money and nobody should be busy stressing them with complicated mission statements. Therefore, this explains why the mission statement of this company portrays happiness.

He admitted that companies must set high standards through their mission statements but most of them fail to respect policies that ensure employees perform their duties without supervision. He presented that it was good to have ethical guidelines that ensured workers were obliged to offer their services to make their clients happy because this is the best compensation for their loyalty to the company (Angier 37). This explains why the mission statement of this company is not just a single phrase but a collection of issues that are of significant value to the company.

He did not refute the importance of having logical mission statements but claimed that it was necessary for companies to start doing what they had been preaching for a long time. He argued that statements like”Customer is King” and “We Know Your Needs” should not be used to confuse clients that they will be served according to how they wanted because employees cannot perform beyond what their employers expect them to do. Mr. Njogu explained that his company realized the need to be honest and avoid doing things that other people do to make clients happy. This explains why the mission statement of this company advocates for honesty, integrity and respect between employees and clients.

Even though, communication is an important way of promoting the image of a company this should not be used to criticize employees or clients. He claimed that most companies fail to retain their clients because of poor communication channels and lack of proper ways of expressing opinions. However, this company has its doors open for people that think they have important ideas of improving the quality of services offered. This explains why this company appreciates people that make mistakes because this is a good way of learning and improving service delivery.

This company has a significant number of clients even though there are many investors offering similar services. The chief executive officer explained that challenges were very important in improving the quality of services offered by a company and setting high standards for employees. Therefore, there is the need to ensure clients challenge employees and set high standards for them so that they can struggle to improve their speed, efficiency and become active at work (Jones 18). In addition, employees should set impressive targets and achieve them even before their clients realize what is happening. This will be an effective way of ensuring a company expands its boundaries and competes with others without struggling to do so.

Moreover, he claimed that his company gets what it gives clients and thus there was the need for loyalty to exist between workers and customers. There is no way this company could improve if it did not offer good services to its clients and this means that it had to perform well if it wanted to dominate the local market (Taylor 172). This explains why this company highlights the need to give loyalty to receive it and improve its performance while offering professional services.

Conclusion

The mission statement and phrases used to explain various issues about this company seem unrealistic and funny but this is what it uses to attract the public. There is the need to ensure that companies do what they say and avoid sounding big and powerful yet they offer poor services. They should know that mission statements will not work miracles if employees fail to offer quality services to clients. Therefore, this statement should reflect what a company can achieve and not just to please and attract them.

Works Cited

Angier, Michael. How to Write a Motivating Mission Statement. New York: Success Networks, 2011. Print.

Jones, Laurie. The Path: Creating Your Mission Statement for Work and for Life. New York: Hyperion Books, 2012. Print.

Taylor, Ron. The Mission Statement: A Framework for Developing an Effective Organizational Mission Statement in 100 Words or Less. New York: Wiley, 2011. Print.

Tolliver, Willie. Stories of Transformative Leadership in the Human Services: Why The Glass is always Full. California: SAGE Publications, 2009. Print.

In the modern world of business, companies often have to engage in stiff competition with numerous rivals to survive and make profits. Apart from the competition, there exist other factors that may influence an enterprise’s performance. For instance, while taxes allow the government to function and finance various projects, high corporate tax rates decrease the profits of companies. Furthermore, firms may worsen their own performance if they do not carefully consider their future activity, for example, by assessing their projects. In this paper, the influence of corporate tax rates and the importance of project valuation, cash flows, and risk analysis will be discussed.

Higher corporate tax rates are usually considered to have an adverse effect on corporate business practices. They decrease the profits of a company, and are, therefore, generally viewed as an additional expenditure. Lower profits may result in a slower pace of growth of a firm and the inability to hire new employees, which also adversely affects the employment rate in the region. Furthermore, if the tax is too high, an enterprise may have to start laying off workers. In some cases, businesses may relocate to a region where the tax rates are lower, or start creating products that are subsided by the government (Financial Web, n.d.).

In addition, higher corporate tax rates “are also associated with lower investment in manufacturing but not in services, a larger unofficial economy, and greater reliance on debt as opposed to equity finance” (Djankov, Ganser, McLiesh, Ramalho, & Shleifer, 2010, p. 59).

At the same time, lower corporate tax rates may stimulate the development of businesses. On the other hand, the effects of particular corporate tax rates may vary depending on the other tax rates, such as VAT, personal income tax rates, and sales taxes (Djankov et al., 2010). It is clear, however, that the state may need money obtained by taxation on purposes such as healthcare and education. Thus, it is paramount that all the tax rates are balanced and do not overburden either business or e.g., individual people, while still allowing for adequate funding of essential projects.

There exist a number of reasons why it is important for a company to have project valuation, cash flow, and risk analysis. It is known that people often tend to be excessively optimistic when expecting future events; one of the reasons for this is the fact that it is difficult to forecast all the complications that may emerge, especially without careful analysis. Because of this, the actual value and cash flows for a certain project can vary greatly from what was originally expected by the firm if a thorough analysis had not been carried out, and, if the initial expectations were too optimistic, this might result in a significant loss for the company.

Therefore, an evaluation of a project and scrutiny of its cash flows are of crucial importance if a firm is to make profits. It is also clear that the risks involved in a project need to be analyzed as well so that the enterprise is prepared to face and properly address these risks if they emerge. In addition, it is noteworthy that for certain projects, there might exist significant hidden risks that would make the project totally unprofitable. All in all, project valuation, cash flows, and risk analysis are essential if a project is to bring profit to the company, and not a loss (Brigham & Ehrhardt, 2014).

To sum up, it should be stressed that higher corporate tax rates are associated with a number of negative effects on businesses; corporate tax rates ought to be properly balanced with the rest of the taxes so as not to impair the functioning of entities of different types. At the same time, project valuation, cash flows, and risk analysis are paramount for any company, for if they are not carried out, the firm may suffer significant losses because of not predicting the complications and expenditures involved in a project and not being ready to properly face the risks related to it.

References

Brigham, E. F., & Ehrhardt, M. C. (2014). Financial management: Theory and practice (14th ed.). Mason, OH: Cengage Learning.

Djankov, S., Ganser, T., McLiesh, C., Ramalho, R., & Shleifer, A. (2010). The effect of corporate taxes on investment and entrepreneurship. American Economic Journal: Macroeconomics, 2(3), 31-64. Web.

Financial Web. (n.d.). How does a corporate income tax affect company decisions? Web.

Introduction

The chosen study by Laux examines the association between deferred tax assets and liabilities and future tax payments. The author’s hypotheses are based on previous literature, and the findings suggest that an asymmetrical correlation between deferred tax figures and future tax payments in the reviewed firm (Laux 1357). This study serves to empirically validate the prior theoretical assumptions, thus offering a new perspective on the research of deferred tax assets and liabilities.

The author also states that the study could potentially impact accounting standard-setters, as it identifies a significant gap in the ASC 740 (Laux 1381). The present paper aims to provide a summary of the research study and to speculate on its significance to further research.

Summary

Using financial statements information, the author performs an empirical analysis by conducting a cross-sectional regression analysis of future tax payments based on current taxes payable and the deferred tax variables. The findings are asymmetrical, with significant variations between deferred tax variables included in GAAP income before and after taxable income (Laux 1359). For instance, the deferred tax variable included in GAAP prior to taxable income correlates with future tax payments, whereas the figures included in GAAP income after taxable income do not (Laux 1359). The second part of the research also found that investors tend to value deferred tax assets and liabilities included in GAAP income prior to taxable income (Laux 1359).

Importance

The introductory part of the paper serves to identify the theoretical basis for the empirical study. For instance, the author reviews a variety of theoretical assumptions offered by previous studies. Laux notes that there is a significant conflict within the research community on the question of whether or not deferred tax assets and liabilities might be used to predict future tax payments (1358). Therefore, the study serves to provide empirical support for the previous assumptions.

The author also establishes the significance of the research question, explaining that determining the presence of a strong association between deferred taxes and future tax payments could be used to improve the current financial accounting standards (Laux 1358). According to Laux, accounting for the deferred taxes is a complicated and costly procedure, whereas the FASB “is obligated to consider whether the benefits of reporting particular information are likely to justify the costs incurred to provide and use that information” (1358). Therefore, determining the usefulness of deferred tax accounting in providing financial predictions could help to improve the standards.

Conclusion

Overall, the study provides some important insights into the accounting theory and standards. However, there are some questions on the topic that were not addressed in the research. For instance, if the deferred tax assets and liabilities included in GAAP income before taxable income are more valuable than those included in taxable income, would there be any way to use just those figures for tax payment predictions? Also, since the author notes that the results cannot be generalized to firms outside of the scope of the present research (Laux 1382), what are the firm characteristics that make the research results applicable to a firm?

These questions could be addressed in further research on the topic, as they would help to complete the empirical results achieved by the author. Further research on the association between deferred tax variables and future tax payments could be used to inform the standards of accounting reporting, making the procedure more cost-effective and useful.

Works Cited

Laux, Rick C. “The Association between Deferred Tax Assets and Liabilities and Future Tax Payments.” The Accounting Review, vol. 88, no. 4, 2013, pp. 1357-1383.

The Florida State Department of Revenue has the responsibility of administering revenue laws of the state to its citizens as well as the laws that are related to the inspection of the books of accounts so that tax returns are submitted to the Taxation Authorities and it also facilitates the collection of the state sales taxes and the use of tax according to act section 20.20 chapters 212 so the government can have enough revenue to carry out the activities of the country. The mission of the Florida State Department of Revenue is to serve its citizens with respect, concern and to act professionally to citizens it also ensures that the tax and support laws are complied with and are understood by all the citizens of the country so that they can understand the importance of taxes so that they can not hesitate to pay the taxes to the state. The department also ensures that the laws are fair and are consistently followed so that the affairs of the country can be conducted efficiently and effectively. It also provides excellent services to all its citizens in an efficient and at a low cost so that the administration of the tax can be carried in a cost-effective manner. The sales taxes are referred to as the levy that is placed by the states on the goods or services that are purchased from the business. The purpose of the sales tax is to ensure that the goods and services that are purchased are taxed whether they are brought locally or from the outside traders. The residents of Florida are required to pay sales tax on the merchandise that is brought from the businesses.

The purposes of the Florida State Department of Revenue are to collect taxes from the residents of the country in an accurate and timely manner and to collect fees from the taxpayers, to distribute the funds collected from the citizens to government agencies so that they can provide services to the public. The funds collected from the citizens are used for financing the education sector, health care, transportation prisons, environmental protection, and other programs so that the development of the country can be experienced in the country. The government monitors the collection of the sales tax by registering the taxpayers and maintaining the tax return filling database that is used to mail returns to the taxpayers so that the state can have an easy time submitting their returns to the state (Jerry, A. 2003). The accounting departments of various companies are responsible for the processing of the necessary paperwork and the submitting of the collected taxes to the tax revenue department so that it can submit it to the relevant departments that require the revenue for development purposes.

In the year 1998, Florida’s sales and tax collections increased because of the good organizational structures of the state that promptly collected their returns but in the year 2003 the state experienced sales losses due to the fact that the country experienced high levels of consumption on the citizens of the country, the state also increased the rate of the sales taxes exemptions that reduced the returns of the economy. The state of Florida did not tax its resident’s personal incomes but the income of the states depended on sales tax returns. The state also repealed the idea of having the implementation of the estate tax since it did not bring enough returns to the state.

The taxation authority processes the tax returns, other documents and deposits them to the accounting department so as to ensure that proper accounting is made and they also ensure that underpayment and overpayments are identified on the records o tax returns so that the state can have enough returns for running the affairs of the country. The remittance accountings are used by the accountants to record the accounts that are related to the sales, and then the accountants submit the sales returns to the taxation authorities so that they can ensure that financial data are associated with tax returns at the individual level are maintained and properly adjusted. The financial data are summarized so that they can be posted at the fund account level so as to distribute tax dollars to the state and the local government accounts. The state also ensures that the compliance enforcement laws are implemented into the organization so that they can ensure that the collection of the money that is owed by various organizations are properly accounted for properly, the collections assistance are also carried so as to ensure that the activities of the organization are carried out effectively The state carries out the audits of the taxpayers records so as to ensure their enforcement compliance policies are implemented. The Florida state also recognizes the unregistered taxpayers that do not adhere to the regulations and procedures of the law of submitting their tax returns at the proper time are dealt with accordingly. In the cases where the taxpayers do not comply with the submission of the tax returns then necessary action are taken so as to avoid the non-compliance, the tax authorities investigate the cases, they recommend the prosecution of the defaulters and the resolution of the disputed liabilities among the taxpayers so that the cases can not happen in the future. The business owners that collect sales taxes are required to collect sales tax and to submit the taxes to the state on a monthly basis failure to which would lead to tax frauds that could also lead to prosecutions of the state’s sales tax crimes. The state of Florida imposes the civil tax audit on the businesses since the state believes that the filling in of the sales tax returns can also reduce the cases of fraud in the organizations.

The reasons why the sales tax is audited are because the businessmen fail to collect state sales tax from the customers, they fail to properly report sales taxes, they fraudulently underreport the states sales taxes, they delay or fail to file the sales tax returns, fails to submit the tax returns to the state and this leads to prosecution of the persons that defaults to pay up the taxes. On the other hand, the state’s failure to collect and file the state sales taxes can lead to inadequate record-keeping or confusion on whether a transaction is subject able to sales tax on the basis of a defense to charges of tax fraud.

The Florida State Department of Revenue obtains most of its revenue from the sales taxes but not the income taxes thus in order for the state to guard and pursue the revenue, it conducts the audits by carrying out assessments of the penalties and the interests that are associated with non-compliance with the sales tax so that all persons that carry out the businesses in the country pay up their taxes and this enables the state to generate as much revenue as possible to run the affairs of the country in an effective and efficient manner. The Florida Planning and Development Laboratory at the Florida State University develops a policy whose objective is to finance risk-based mechanisms that can be used for financing local emergency management costs that are associated with hurricanes. The state introduces the initiative through the Florida Planning and Development Laboratory so that the organization that follows the tax-benefit-equity principle that derives more revenue to the economy than the costs related to the collection of the taxes by the state hence leads to the growth of the economy (Bollens, S. A. 1994).

Florida’s state real estate market faces so many tax-related problems that are a result of the exacerbated rising cost of the property, insurance, and the nationwide problems that are associated with the sub-prime mortgage markets. The property taxes values rise due to the commensurate reductions of the tax rates, rapid increases in the property tax burden on the properties that are not involved in the homestead exemption thus the property tax burden is shifted to the renters, seasonal residents, owners, and the tenants of the commercial properties. The property owners asked for tax relief since the tax burden that was subjected to them was too heavy for them to bear since the returns they derived from the investment was minimal as compared to the costs that were incurred in putting up the investment projects. The state’s initiative to increase the property tax exemption from $25000 to $50000 was a relief to the residents of Florida since the tax burden on the resident’s reduced their morale to produce goods and services in the country that would improve their living standards in the country (Pagano M. A. and Forgette R.)

The Florida state establishment of the Taxpayer Protection Amendment that would reduce the rising rate of the state spending that led to the large number of people in the country that limited the growth of the economy and also to reduce the rate of inflation into the country. It also ensures that the surplus revenue those are accrued from the amount invested in the emergency and budget stabilization funds or returned to the taxpayers are higher than the operations of the organization so that the state do not run into deficits. The Taxpayer Protection Amendment also ensures that the voter’s approval for the any issue do not go beyond the standards that are set by the state and for any issue that weakens the amendment’s limits the state carries out corrective measure to curb their occurrence as it can affect the performance of the organization. The amendment can limit the level of the growth of revenue and spending and it also stabilizes the budget so that the living standards of the citizens of the state are not be affected and also the state is in a better position to carry out its activities effectively.

The taxes that are collected by the tax authorities from the citizens are properly maintained and implemented as the citizens can avoid to pay their taxes if the state does not utilize its resources effectively that can be able to meet their needs and desires of the residents of the country. The States of Florida can ensure that the taxes collected are properly utilized by ensuring that they elect qualified taxation authorities who are held accountable for their deeds for example the tax burdens that are imposed on the residents are not be too much to deny the citizens the chance to develop themselves and also to increase the returns of the economy of the country. The flaw that exists in the legislatures of tax in Florida to provide property tax relief are as a result of the annual increases of the assessed value of the homestead property to 3% a year or the change in the consumer price index whichever has a lesser value. The homeowners that are eligible to pay of taxes are also eligible for the homestead escalation thus they are exempted from the property tax burdens and this improves their level of productivity. The property taxes rise as a result of an increased appraisal values or the higher property taxes of the property of the state and this hinders development into the country. The most effective way in which the state of Florida can constrain the growth in the number of the tax burdens that are to impose on the effective tax system that are favorable for all citizens of the country and one that can limit the level of spending among the state officials and the citizens level of consumption so as to reduce the amount of taxes that are subjected to the residents of the country. The imposition of the Constitutional Revenue Limit can also reduce the amount of taxes that are imposed on the citizens of the country since it can negotiate on behalf of the state and the citizens on how to reduce the tax burden of the residents and thus improve on their living standards so that the productivity of the country can be increased hence bring in more returns to the government.

The municipal authorities has the authority to impose tax on the retail sales or on the commercial transactions, but the problem with them is that they can not differentiate the different categories of the consumers who earn different levels of income thus the tax burden can not be evenly distributed to the residents of the country thus it can lead to adverse affects on the performance of the residents of the country since the taxes are unfairly distributed to the residents of the country.The sales taxes increases affects the poor since they consume the commodities that are produced by the companies in the country whose sales tax are high , but the sales tax do not affect the rich since their earnings are higher than those of the rich thus the effect can not be felt by them as that of the poor.

The Florida Intangibles Tax force that was created in the year 1990 by the Florida Tax Watch with the objective of examining the impact of the Florida’s tax on the economic development and the competitive position of the state so that it would help reduce any impediment that would limit the economic development of the country. It was noted by the Florida Tax Watch recommended the use of the tax system that had taxes revenue that outweighed the costs that are associated with the collection of taxes in the state in since it can bring in more returns to the state. The tax payers of the state of Florida uses the third-party contractors to carry out the taxpayer audits so that they can present the financial statements of the companies in a true and fair view and also ensure that the companies comply with the regulations of the state as failure to which can lead to tax fraud. The Tax Authorities of Florida found out during a evaluation test that the external auditors are denied the chance of accessing information that are crucial for carrying out the audits of the companies of the state and this lead to the auditors presentation of the financial reports that do not present fairly the operations of the company. The state invest its resources in training the external auditors on the particular state law and the changes therein so that they can be able to perform their work independently instead of being interrupted by the management of the organizations so that they can carry out their activities accurately and effectively (Jerry, A. 2003).

The Florida states introduced the certified audit program that can be to used to monitor the accounts of sales tax of the goods and services that are taxed because it carries out the auditing task effectively and less staff are required carrying out the auditing tasks thus it can be cost effective for the state to carry out their duties and responsibilities using the program. The state tax auditor utilizes the information sharing network so as to understand the information that pertains to the running of the affairs of an organization. The state tax auditor not only helps the companies to address the tough tax audits but they establish compliance strategies that are used to minimize the exposures that are associated with preparing and recording the sales taxes accounts. (Jerry, A. 2003).

The Florida state economy depends on the secure adequate and reliable supply of energy so as to enhance the carrying out of the activities of organizations in the country. It was reported that the country consumed a lot of energy in terms of electricity but the country was prone shortages of the energy supply than any other state since it did not own petroleum products that would the run the machines of various companies of the state, thus the state could not collect revenue that would be utilized to run the affairs of the country because the productivity had gone down to sustain the operations of the country. The states over reliance on the imported petroleum products hinders its growth since the transportation of the petroleum products are not sufficient enough because they use the sea as a means of transport that hinders the carrying out of the activities of the organization in an efficient and effective manner. It also leads to the fluctuations of the market mechanisms as fewer goods and services are produced as compared to the demand for the goods and services and this leads to inflation where high prices for goods and services arise since the supply of the goods and services are fewer since their production are affected by the less energy supply to run the machines of plants and equipments of different organizations in the state (Raymond J. B and. May. P. J. 1997).

The Florida State economy are affected by the issue of allocation of land since most of the resident of the country sold their land for the construction of buildings for residential purposes than utilizing the land for agricultural purposes. The idea affected the performance of the company because the citizens would not cultivate land for farm produce that would increase the returns of the organization. The effects of selling the land are that there are environmental degradation; inadequate ulitisatisation of the public utilities since the state can not implement new facilities in to the country as the tax returns are few hence development cannot take place in the country. The rate of sale taxes that are subjected on the commodities that are produced by the state are fewer since the productivity of the country are because the residents do not utilize their land for productive purposes, thus the returns of the country are not reported in the country.

The Florida State implement proper taxation procedures that can be followed by all residents of the country so that the revenue of the country can increase that can be used to improve the performance of the company and also to lead to its growth and development.

References

A Florida Government Accountability Report Oppaya an office of the Florida Legislature. 2008. Web.

State Sales Tax Crimes Florida Sales Tax Fraud Defense Attorney. Horwitz, M. L. 2008. Web.

Sales and Use Tax Demystified Avalara, Inc. 2008. Web.

The Case for Florida to Enact a Taxpayer Protection Amendment Dr. Poulson, B.and Sanchez R. F. 2008. Web.

Jerry, A. (2003). The Effects of Florida’s Growth Management Act on Housing Affordability. American Journal of the American Planning Association 69(3):282–95.

Bollens, Scott A. (1994). State Growth Policies and Suburbia: Regional Responsibilities Amid Political Fragmentation. Research in Community Sociology 4:173–94.

Scott A. B (2003) In through the Back Door: Social Equity and Regional Governance.Housing Policy Debate 13(4):631–57.

Raymond J. B and. May. P. J. (1997). Making Governments Plan: State Experiments in Managing Land Use. Baltimore: Johns Hopkins University Press.

The Ohio Municipal Income Tax: Preliminary Observations. Pagano M. A. and Forgette R. 2008. Web.

Planning in the Wake of Florida Land Scams. Stroud, H. B.and. Spikowski, W. M. 2008. Web.