Encouraging Small Businesses to Adopt Non-Cash Form of Business Models
Added on 2019-11-26
13 Pages3568 Words181 Views
|
|
|
Running head: TAX ASSIGNMENT Tax AssignmentName of the StudentName of the UniversityAuthor Note
1TAX ASSIGNMENT Table of ContentsAnswer A:........................................................................................................................................2Answer B:........................................................................................................................................3Answer c:.........................................................................................................................................9Reference.......................................................................................................................................11
2TAX ASSIGNMENT Answer A: Black Economy: The term economy refers to the condition of an area or region, in terms of demand andsupply dynamics and their mutual interactions towards the path of equilibrium, usually measuredin monetary terms. It falls under the responsibility of the government to keep account of theeconomic activities of the concerned country. There are many economic variables and indicators,which are designed for accounting the economic activities of a country. The part of the economicactivities, which can be accounted for, by the monetary authorities of a country, is referred to asthe white economy and falls within the tax regulations and other rules and regulatory frameworksof that concerned country (Schneider & Enste, 2013). However, some economic activities tend tolie outside the domain of the regulatory framework of the country and the monitoring frameworkof the country cannot account for these activities. These activities taken together forms what isknown as the black economy for that particular country. The economic activities, falling under the domain of the black economy, do not followthe regulatory framework existing in the economy and also do not fall under the taxationframework of the country. These activities, though not falling in the regulatory construct, maynot necessarily be illegal per se (Schneider, 2012). Illegal activities necessarily falls under thedomain of black economy; however black economy also comprises of several legal butunaccounted economic activities. There are several examples of such activities. A maid who isappointed for doing household chores and is paid in cash, with no account of the payment or aconstruction worker of a legally approved construction company, who is paid under table, fall
3TAX ASSIGNMENT under the purview if black economy. Again taking bribes, money earned through smuggling,being illegal economic activities, also fall in this domain (Beckert & Wehinger, 2012). Shared Economy: A special form of economy, which can prevail in real case scenario, is a shared economy.In this type of economic structure, individuals can borrow commodities and services, which areowned by some other individual. This implies that in a shared economy, the assets, includinggoods as well as services can be privately shared between the individuals living in the country.This type of economy has been in existence from the advent of the concept of society inhumankind. The ways of operation of this type of economy has changed substantially but theunderlying concept has remained the same (Böckmann, 2013). The main objective of thiseconomic framework is to maximize the welfare of the society as a whole, by enriching the livesof the residents of the concerned economy. The basic intuition behind this economic concept isthat some other individual, who is deprived and is in need of that particular asset can, moreefficiently use the under-utilized assets lying with an individual. In the current age, withsignificant innovations in technology, communications have been hugely facilitated, therebymaking the sharing activities more easy ad hugely widespread, thereby facilitating the existenceof the shared economic framework (Cohen & Kietzmann, 2014). Answer B: This part of the assignment tries to discuss the different aspects of the sharing economicmodel and tries to compare these aspects with that of the traditional economic models to analyzethe influence of these aspects on the overall business conditions of the economy and the mode of
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents