Theory Practice Revolt In Medieval England: A Discussion

Calculation of the net gain or loss in the capital for the current year

Discuss About The Theory Practice Revolt In Medieval England?

Taxation is the term which denotes to the coercive or compulsory amount of money that is collected by any levying authority which basically encompasses the governmental authority. Taxation is the term which is applicable to all kinds of involuntary levies right from income to the gains in capital which further leads to the estate taxes. Taxation is very different in approach as compared to the other forms of payments like the market exchange and different other services.  The governmental organizations are accountable regarding the collection of taxation through various implicit and explicit ways or threat of action (Aust, 2013).  The taxation varies from the extortion and protection racket as the organization on which taxation is implemented is a governmental and not private agency. The system of tax varies with the variation on places and countries which basically denotes to the variations in location. Taxation is found to be imposed basically on the physical and tangible assets such as the events, transactions of sales and properties.  The devising of tax is one of the most important aspect and issues in the political arena.

Taxation can be further regarded as the principle on the basis of which the government raises the revenue.  The government of any country will not be able to implement the laws in the states in a proper which would lead to many issues is the import and export of various products in the country without the imposition of taxation.  Therefore, taxation has a very crucial role in the delivery of the public goods or products to different communities. There are many ways in which the government of any country can happen to raise the revenue such as: charging of fees can be devised by the governmental organizations for rendering services. The governmental organization can also implement the granting of the license regarding imposing amounts as fines in the case of breach of various laws and design new rules and laws regarding different investments and assets (Beatty, 2015). Taxation can be very well differentiated  from different other forms of payments as it does not need any kind of consent and is not associated with any rendered services.  Systems of taxation have varied in a considerable manner across time and jurisdiction.

Taxes can be further stated as the special systems which are imposed on various communities.  The laws of taxation are denoted as the frameworks of laws which assist in governing the liabilities of the individuals and the organization for paying the tax. Taxes economics all the rules and regulations along with the establishment of the base of the tax and the implementation of the taxes. It is observed as the Australia comprises of a vast structure of laws of taxation. The key source of Australia  is  based on regarding  finding  hundreds of pages  consisting the legislation of taxes  which are  enacted  by the  territory parliaments , commonwealth and the federal state (Brigham, 2014).

Application

The laws of taxation are implemented and regulated by the commonwealth constitution along with the international treaties which encompass the Double Tax Agreements to associate with the foreign countries. Taxation is very important and useful regarding various challenges and studies associated with the society due to the vast and expanded nature along with the complexities in technologies (Brigham & Ehrhardt, 2013). Right from the last years, it was observed that many steps and attempts were taken by Eric who involved many attempts for the solicitation of some of the assets. In accordance to the question, the assumption had been made that he had those specific assets since one year.  The capital’s taxability is found to increase when there is an increase in the selling price of the specific assets right from the base cost. The cost of indexation will not valid in the case of Eric as he had not made any reservations of the assets for more duration of time than just a year.

Assets are the material and tangible things that are brought by the customers for their personal use and pleasures. This personal usage does not encompass the collectibles. These tangible assets are sold again to a different individual and the taxability does not play into the case in which the costs of acquisition of the considered assets are found to be less than $10000. The item that was acquired by Eric initially is the sound system for his home which was supposed to have the cost of acquisition as $ 12000. The asset which was bought by Eric secondly is the share of a company which had the cost of acquisition to be less than the previous one which is $15000 (Dafflon, 2015).

Assets which were brought by Eric for personal pleasures and enjoyment do not involve the taxability of the gain in the capital as the costs of procurement of the assets is very much less than or equivalent to $500. On the basis of this information, Eric had taken over the collectibles. The asset which was taken over by Eric at first is the painting which has cost of acquisition as $90000 (Filatova, 2014). The asset that was secondly captured by Eric is the antique chair which has cost of acquisition as $30000. The last asset which was acquired by Eric is the antique vase. It had acquisition costs of $2000 correspondingly.

On the basis of the entire discussion, the following table has been formulated which are used in the calculation of the corresponding assets.

Particulars	Cost Base of Assets	Capital Proceeds of Assets	Net Capital Gain/ (Net Capital Loss)
Antique Vases	2,000	3000	1000 Gain
Antique Chairs	3,000	1000	(2000) Loss
Painting of the assert	9,000	1000	(8000) Loss
Shares that are listed in the company	5,000	20000	15000 Gain
Sound system ofr home	12,000	11000	(1000) Loss
Net Capital Gain/Loss			5000n

Loan sanctioned by Brain

Assets that are taken over or acquired for a time period that is more than a year for any kind of personal use or pleasure, taxation of the capital is valid and applicable in such cases. Taxability is valid and applicable on the collectibles which are acquired with the costs more than $500. The losses in the capital for the entire year have been fixed with the required net worth of loss or gain.

Brian has recommended a new and innovative system to the employees in which he was offering loan for time duration of three years with the rate of interest being one percent on a monthly basis. Because of this idea which involves $ 1 million, many individuals turned up to open a bank account and receive the benefits and advantages of the loans which were offered to the employees by Brian (Francks & Francks, 2015).  He was making the offer of the rate of interest that was less than the rate of interest that was offered in the market.

Apart from this offer, in order to calculate the taxability of such kinds of benefits, the rate of the statutory interest need to be considered.  In accordance to the question, the interest rate of statutory will be accounted as 5.56 percent as the loan was made to be offered on the date of 1^st April, 2016.

In the first step, the benefits of the loan will be computed after the eradication of the rule.  The loan interests are determined on the basis of the actual interest rate that should be deducted from the loan which is determined due to the statutory rate of interest. The rate of interest which are based on the statutory interest = $ 1000000 * 5.65 percent = $ 56,500.  The interest which are based in the actual interest = $ 1000000 * 1 percent= $10000. The taxation is varying in both the scenarios, which is $ 56, 500 – $ 10,000 = $ 46,500. In the second step, Brian needs to follow the next step. He must compute the rate of statutory interest after the acceptance of the amount to be payable and real. The interest rate is  $1000000 * 5.65 percent  = $56,500. In the third step, from the whole percent, only 40 percent was utilized  in the implementation of the meeting for the  upcoming events, where Brian has calculated the  costs from which tax was deducted  manually which is $ 56,500 * 40 percent = $ 22, 600.  According to the fourth step, from the entire amount of the loan, 40 percent was utilized in the meeting for the near future by Brian which involves the real amount that amounts to as $10000 * 40 percent = $4,000. In the fourth step, apart from the above mentioned steps, the actual amount is then computed in this step from the manual amount so as to arrive at the desired conclusion. Hence, $22,600 – $4,000 = $ 18,600. The final amount, in the final step, needs to be calculated by subtracting the amount from the first step after calculating the amount till 5^th step.  Hence, $46,500 – $ 18,600 = $ 27,900.

However, if there happens to be any kind of system if repayment of such loans right before the period of termination, in that case, instead of the conventional system of repayment, the period deemed of the loan will be considered  from starting period  of the interest  or become payable (Leigh & Blakely, 2016).  Other than this, the obligation is on the section of the repaying mode of the interests, then in these kinds of scenarios, the calculation need to be conducted in a very similar way such as the actual rate of interest that is considered as 0.

Both Jack and Jill have made an management for borrowing the money for the house which they have rented. In the agreement it has been structured that Jack was allotted to receive ten percent of the profits, on the other hand, Jill was eligible to receive ninety percent of the profit deriving out of the whole property.

In accordance to the agreement made on between Jack and Jill, in any scenario which would involve any kind of loss in the property, the entire amount of loss, that is 100 percent, will be handled by Jack. Jack and Jill, in previous year, had sustained a loss of around $1000 that was completely paid by Jack with no obligation of any of the losses on Jill who is Jack’s wife (Meese & Oman, 2013).  The loss resulted in a set off on the other different forms of incomes of Jack that would determine the net loss or profit for the whole year. Jack, apart from this specific option, has one more choice which is regarding carrying the whole loss in the forward direction for the upcoming year.

In any scenario where Jack is confronting any kind of loss, and then he has the complete right to bear the complete amount and can take the amount forward in the future years so as to maintain the net loss in the amount or the net income.  In the second scenario, is there is any amount of gain, and then the particular amount will be categorized between Jack and his wife Jill effectively in the ratio of 10:90. In such cases, Jack has the complete right for setting off the total loss of $1000 which resulted after the sale of the property.

Hence, from the whole discussion, it was decided that Jack was able to handle the losses which had occurred in the last year and he is obtaining the amount in the current year after the sale of the property (Mumford, 2017). The conclusion was made which stated that if Jack happens to not have any gain in the recent year, he, in such case, has to be accountable to pay for the entire loss with no involvement of his wife Jill.  Hence, this process has been a great assistance to Jill for staying away from the effects of taxation where as Jack is only accountable to bear the entire loss.

In accordance to the law, every person has the power regarding the legal strategies and plans which assist them in decreasing the net amount of income at the end of each year, according  to the case scenario study  of the  IRC versus Duke of Westminster  [1936] AC 1 (Seyoum, 2013). After getting into the details of the case after analyzing the case properly, it was clarified that each individual obtains the right of utilizing the benefits and rights which are attached to the overall income.

In the terms which are familiar, the rights which are valid only in the scenarios where they are used in a  very fair manner  and the  appropriate methods  which are applied  to it , that is supposed for the reduction of the income costs  and the values to a tax at the end of that particular year (Valente, 2017).

The following principles are categorized from the above scenario of the case study:

The entire authority has been awarded to the individual for using the strategic plans and methods for the reduction of the total income by regulating their own individual accounts.

There will be no extra taxes levies or implemented if the process will be carried out in an appropriate manner without any methods or means that are illegal. 

When an individual follows the legal and fair way for reduction of the rate of tax and amount, then they will not be enforced for paying the extra rate of tax in the near future.

The point number can be stated as valid unless any new kind of law is executed in the nation. The ideology is very different from each other and keeps varying from the previous year. The key objective of these rules has a prominent role and importance in the present circumstance in different manners (Vatn, 2015). Considering an instance, in the scenario in which a business is confronted with great deal of losses in a specific year that attends to its obligations, in such conditions, the business has the chance for the alterations in the amount and balance sheets. The business can make preparations regarding the new one with the assets that are fixed and the value of the assets. In certain cases, the business did not happen to provide the documents that are relevant but however, they can carry out the implementation further.

However, specific restrictions are appropriate for them (Verdier & Voeten, 2014). They must not follow any kind of illegal ways for achieving so. Summarizing the entire discussion, it is clearly evident that the business organization has to function in a very transparent and legal manner for achieving the business target and need to follow the rules and laws along with its procedures.  

In this case, Bill acquired a piece of land that he has considered for using it for the purpose of grazing by the sheep.  So as to fulfill his wishes, the whole land requires to be cleared as much number of trees was planted over there.  Hence, he had hired a company that provides logging services for clearing the entire land (Wagner, 2013).

The logging company has charged Bill with $ 1000 for every 100 meters of the timber. However, the key question that arises in this case is that whether the tax is applicable on the company providing logging services for the whole amount. In accordance to the   given situation, there are no presences of any fact on the receipts which are received from the logging company that is considered as the object of revenue or might not be assumed to be an object. The highest degree of uncertainty states that the rules that are associated to the gains in the capital are not suitable and applicable in the recent circumstances of Bill (Yan & Luo, 2016). 

When the Bill is making an investment of the entire amount of $50000 to the company providing logging services for the removal of the trees for getting the timbers, the equal and entire amount is transferred to the hands of Bill in the form of the receipt of capital. This happens because of the reason in which the entire amount is considered as a lump sum and there is more recurring receipt for the reason. Again, the transaction which has occurred facilitates the provision of the right to the specific authority for the removal of the trees from the particular land. Hence, after the complete scenario, the case was assumed to be as the receipt of lump sum along with the net capital receipt. Hence, taxation of the capital is in the responsibility of Bill.

Conclusion

Therefore, in the above scenarios, the value of, money that was put into investment has played a great role and has a key significance in the laws of taxation. These two cases are very much different from each other. In the first case scenario, the receipt is in the accountability of Bill and is recurring. On the other hand, the receipt is in the accountability of Bill, however, it is not recurring which provides the right of receiving the payments from the logging of the tress in the upcoming situations. He will receive the same receipt in a bigger investment and that will be taken into consideration as the receipt in one- time (Verdier & Voeten, 2014).  These are the considerations as the receipt in the kind of one-time as when they are made to be removed from the land, it will consume more time for growing the trees again on the same section of land. Thus, in the next upcoming situation, Bill is getting sufficient amount of money from the other side.  This act is regarded as a lump sum by making the assets getting sold.  When one of the parties sells the product to the opposition party, then the same receipt has to be considered along with the taxation.  When the observation was made regarding the first case, it did not attract any gain in the tax, and then it needs to be treated as a normal and conventional gain and no gain in capital.

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