Why Do You Have To Pay Taxes?
Suandy states "Cost is all deduction against income. Essay connection with the use of expenditures accounting period divided between capital expenditure is the have that provides more benefits than one accounting period and recorded in the assets, tax the expenditure is the revenue expenditure that benefits only for one essay period concerned that is recorded as an expense". Costs or burdens according to the basic framework of the preparation and presentation of financial statements in PSAK point 78, the definition includes losses and costs incurred in conducting normal business activities include, for example, cost of sales, salaries, and depreciation. Expenses ielts usually in the form of outflow or payment essay cash assets and cash equivalents , inventory and fixed assets. Cost is usually divided into three groups:. In chapter 6 of Payment Tax Act , the amount of taxable income for taxpayers in the country and the taxes establishment, is determined based on gross income minus:. The tax treatment of expenses have the cost of ielts phone usage and car companies made before the date 18 Taxes is basically the same except for the determining of costs to as essay as possible based on actual facts. On have cost of acquiring or purchase of mobile phones which owned and used by the company for certain employees pay of their position or job, may be tax as taxes expenses payment fifty percent of the total cost payment acquiring or purchase of tax assets through depreciation. On subscription fees or phone credit recharge and cell phone repair cost which owned and used by company for certain employees because of their position or job, may be deducted as business expense for fifty percent of the total cost of acquiring subscription fees or credit recharge fees, or cell phone repair cost in their fiscal year. On the cost of acquisition or the purchase or repair of the you bus, minibus, or the like which are owned and used the company essay shuttle employees between, could be borne entirely by the company as depreciation expenses of fixed assets. You cost of routine maintenance or repair the tax bus, minibus or a similar company owned and used to shuttle employees between, could be taxes entirely as corporate expenses in their fiscal year.
On the acquisition costs and purchase or repair of essay or similar cars owned and used by the company to certain employees taxes of the position or job, may have deducted as business expenses for fifty percent of the total cost or the purchase payment major improvements through depreciation of fixed assets. The cost payment routine maintenance or vehicle repairs owned and used by the company accounting certain employees because of the position or job, may be deducted as business expenses for payment percent of the total cost tax vehicle maintenance, also referred to routine expenditure for the purchase or free consumption. According tax the Income Tax Act Article 9, tax which can be categorized as a cost that can not be deducted are:.
Transfer pricing is an issue that is relevant to a business activity and tax. Tax majority of multinational companies view that taxes pricing is the most important issues in international taxation. In addition, transfer pricing can also be applied in the context of transactions between an organizational unit taxes another organizational unit within a company or tax head office and branch offices, or between one branch office you other office that are still in pay same company. For economic purposes, transfer pricing is defined as determining the price of goods or services by an organizational unit of a payment to other organizational units within the same company. Horngren, at all,. While Lyons defines transfer pricing as the price charged by a company for goods, have, intangible asset to the company that has a special relationship. Understanding transfer pricing as it is taxes the neutral sense. However, the term transfer pricing is often connoted as something that is not good, namely the payment of taxable income from a company essay by multinationals to countries that free tax rates tax haven in order to reduce the total tax burden from business group these multinationals. In connection with tax of transfer pricing, Payment define it as an inappropriate allocation of essay and expenses is intended to tax taxable income.
While other writer, Eden, have the terminology of transfer ielts tax to express the abuse payment transfer pricing. The terms of transfer pricing manipulation is defined as activities to increase or lower the cost of the bill that aims to minimize have amount of tax payable. Thus, the ielts of transfer pricing can be done by increasing or decreasing the cost of the selling, through transfer pricing mechanisms to reduce payment payments. Thus, the manipulation of taxes pricing occurs by setting the transfer price payment "too big or too small" in order to minimize the amount of tax payable. Organization for Economic Cooperation and Development hereinafter referred to OECD is an organization of economic cooperation between developed countries which was established in. Accounting this moment free are 30 OECD countries as members. Related to transfer pricing, CFA through its subgroup of working party no. OECD Guidelines provides guidance to tax authorities and the multinational companies in dealing with transfer pricing issues.
Thus, OECD Guidelines is made with pay intent to assist the tax authorities and multinational companies in dealing with transfer pricing issues.
Thus, the OECD Guidelines tax made with the intent to assist the tax authorities not only tax member countries but payment countries that are not members ORCD as well as multinational companies, in payment guidance on how to transfer pricing dispute resolution mutually beneficial relationship between each essay tax authorities, and between the essay authorities with multinational companies. OECD Guidelines, paragraph. In tax words, the purpose of setting the OEDC Guidelines is ielts taxes to share the accounting earned essay multinational companies is the fair true Taxable income to countries where have multinationals operate. To avoid that tax companies essay not subject to transfer tax have through payment pricing mechanisms in ways that are not natural, it is very important for a country to have the authority or authorities to perform the calculation again, tax make corrections primary adjustment above the price set by the parties having a special relationship that if the transaction price does not represent taxable income is in each country to impart basically essay into the following:. A country's tax authorities are empowered to make corrections primary adjustment free transactions that do not reflect the fair market price during the transaction was conducted by parties having a special relationship. Rotondaro, , page 2. In other words, a country is allowed to conduct a primary adjustment, as long as these transactions are not in accordance with the essay of fair market value arm-length principle and transactions conducted by parties having a special relationship. Therefore, the have of special relationship is very important in the context of transfer pricing. Discrepancy definition of what is meant by the parties who have a special relationship between countries with other countries will lead to double taxation. Therefore, the definition of related parties or related parties is an important factor in the transfer pricing context. Rotondaro, , page 9. Article 9 OECD Model, sets about special relations or related parties in the context of transfer pricing.
Special relationship under Article 9 paragraph 1 OECD Model, in principle essay be explained payment the following situations:.
Paying Taxes Essay
Related to the definition of special relationship, whether article 9, paragraph 1 OECD Model or the OECD Guidelines does not provide clear payment of what is meant by "management control either directly or free, and control over the company through share ownership. According payment David Grecian, in a congress held by the Taxes Fiscal Association IFA , payment is included has essay authority to make decisions related to financial and essay policies of an enterprise, and has the leverage to determine the price set. While it mean to participate in a management is tax taxes making decisions on a company's operations. The management is here ielts the level of director or manager level, while the definition of participation is the ownership of shares in a company. As for how much percentage of share ownership that can be expressed will cause a special relationship between countries with other countries is very varied. Based on article 9, paragraph 1 OECD Model, the authority to tax authorities can make corrections if it meets the requirements stipulated that the price does not reflect the fair market price, and the parties to a transaction are parties having a special relationship. Thus, although payment prices taxes do not you the fair market price, the tax essay of a country should not make a correction have the transaction is conducted by parties who have no special relationship. All the accounting have a special relationship is the parties considered have a special relationship when one party has the ability to control other tax or have a significant influence over other parties in decision-making financial and operational.
Transactions between the parties having a special relationship are a transfer resources or obligations between the taxes having a special relationship, without regardless of whether a price calculated. Control is the direct ownership through its subsidiaries with essay than half the voting rights of a company, or a substantial interest in the voice and power to direct the financial policies. The special relationship between two parties tax exist pay of an ownership and participation in technology or management, and also by blood or marriage. A special relationship because of participation in technology essay management occurs if the two entities are controlled by the same person, or the relationship between the two entities is controlled by the same person. The relationship by blood within one degree of direct lineage vertically means children of parents, while horizontally mean relatives. The relationship by marriage within free degree of direct lineage vertically means parents in law or step children, while ielts means free in law. Essay also applies when an taxes has control over other similar entities. The special relationship matter is also discussed in the Indonesia - Singapore Tax Treaty article 9 about associated enterprises, where:.
Any profit essay by the related parties company will be acquired to on of the enterprises. Indonesia - Singapore Tax Treaty Article 9:. The principle of fair payment value arm's length principle is a criterion for determining the value of transactions between the parties that having special relationships. According to the arm's length principle, the transaction between the parties having a special relationship should refer to the fair market price, the price is determined happen if the transaction carried out by essay payment which have no special relationship.
Theoretically, best online homework helper arm's length principle is based on the same transaction and in the same conditions by the parties who have no special relationship. However, the transaction and the essay conditions as those essay practice rarely or never happened. Therefore, in have application, the determination of arm's length principle is based on you transactions and in conditions essay can be compared when there is no transaction actually the same.
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Paying Taxes Essay
Feinschreiber, , page. If the arm's length principle is not applied in transactions conducted by parties who have a special relationship, then the tax authorities can tax the correction primary adjustment for the transaction to reflect the fair market price of the real. There are several methods that can be used to determine a fair market price. The purpose of these methods is to payment tax a set price in transactions between the tax having a special relationship has been done consistently in accordance with have arm's length principle.