BULAW5916 Taxation Law & Practice Assignment

Added on -2020-02-23

| BULAW5916| 14 pages| 3558 words| 37 views

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Running head: ASSIGNMENT ON TAXAssignment on TaxName of the StudentName of the UniversityAuthor Note
1ASSIGNMENT ON TAX Table of ContentsAnswer A:........................................................................................................................................2Answer B:........................................................................................................................................3Answer C:........................................................................................................................................9References......................................................................................................................................11
2ASSIGNMENT ON TAX Answer A: By the term economy, the situations of a geographical location, in terms of demand-supply forces are meant, which are usually measured in terms of monetary units. To measure thesituation of an economy in a particular period, the goods and services produced in that particulareconomy, within that period of time, is taken into account, in general. The part of the economy,which can be accounted for is generally known as the white economy, for that concerned region(Alkon, 2012). These activities fall in the tax framework and regulatory construct of theeconomy. Features of Black Economy: However, there are several activities, which though present in the economy, cannot beaccounted for and these do not fall in the regulatory and taxation framework of the economy.These unaccounted economic activities constitute what is known to be black economy. Activitiesfalling under black economy may not necessarily be illegal in nature, though the illegaleconomic activities do fall under this domain mandatorily. To take reference, the services of themaids who are appointed in various households for performing household tasks, if paid in cash,automatically falls under the purview of black economy, though the activity is not illegal per se.Again, originally illegal economic activities, as bribing or money earned by unfair means, fall inthis category (Black, Hashimzade & Myles, 2012). Features of Shared Economy: There are different forms of economy existing in the global market, with constantdynamics and changes in their nature and types along with time. Example of one such form of
3ASSIGNMENT ON TAX economy is that of the shared economy. a shared economic framework is defined to be thateconomy in which the individuals can borrow or exchange assets, including goods and servicesthat are already owned by other individuals. This imply that in this kind of economy there isprovision of sharing already owned assets in lieu of monetary fees or also in free of cost. Fromthe beginning of existence of what is known as society, shared economy has prevailed in theworld. Over time the framework has undergone significant changes but the basic intuition behindthe theoretical concept has remained more or less the same (Cohen & Kietzmann, 2014). The objective of the shared economic framework is the overall maximization of thewelfare of the society as a whole by efficient allocation of the limited resources present in theeconomy. Therefore, the under-utilized assets that are lying with one individual can be sharedwith another who is in need of the same good or service, in exchange of fares, thereby makingthe economy efficient in the aspect of allocation and utilization of resources (Schor, 2016). Withtime and advancement of technology and innovations facilitating communication, sharing hasbeen easier and more convenient in the modern day world, thereby facilitating the existence ofshared economy even more. There are significant evidences of presence of this type of economicframework in real case scenarios and the model shows potential of future expansion anddominance (Heinrichs, 2013). Answer B: The shared economic framework has received much attention of the business organizations aswell as the governing authorities of different countries as this framework targets towardsachievement of agility and efficiency in the economy, by maximizing the social welfare of the

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