Taxation Table of Contents

TAXATION TABLE OF CONTENTS INTRODUCTION 1 TASK 11 P1 Analysing the taxation system with consideration of legislations based on scenario 1 M1 Critical examination of taxation system in several countries3 TASK 24 P2 Determining the tax liabilities for unincorporated industries 4 M2 Implicating models and interpretation of outcomes.

TAXATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analysing the taxation system with consideration of legislations based on scenario............1
M1 Critical examination of taxation system in several countries................................................3
TASK 2............................................................................................................................................4
P2 Determining the tax liabilities for unincorporated industries.................................................4
M2 Implicating models and interpretation of outcomes..............................................................6
TASK 3............................................................................................................................................6
P3 Identifying tax liabilities for incorporated industry................................................................6
M3 Application of relevant models and interpretation of outcomes...........................................8
TASK 4............................................................................................................................................9
P4 Determination of impacts of key legal and ethical constraints on different industry.............9
M4 Critical evaluation of impacts key legal and ethical constraints on application to different
organisation................................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
To analyse charges on revenue and income generated throughout a year by individual as
well as a business unit on which influences of legislations will help in presenting an appropriate
analysis over data base. In the present report, there will be discussion based on Ford Motor Corp.
and its operations in UK, US and Hungary. It also identifies the differences between taxation
system and legal consequences which are being used in determining tax liabilities of
organisation. Moreover, this report will also suggest techniques to improves profitability as well
as various ways to meet taxable requirements at right time.
TASK 1
P1 Analysing the taxation system with consideration of legislations based on scenario
Introduction to given scenario
Ford Motor Corp had been operating in various countries on which they are performing
trading activities in UK, US and Hungary branches. It had been analysed that, Ford is retaining
profitable revenue through UK and Hungary while US is comparatively having poor
performance as they are in losses from several years. It has been estimated by these branches that
they will retain profitability in upcoming period.
Defining taxation and explaining taxation system
Taxation:
Taxation is a process on which income of an individual or a corporation has been
measured on tax liabilities. The charges on income have been charged with influences of
government authorities and legislatures in country (A survey of the UK tax system, 2016).
However, there have been differences in taxable charges which were being charged on income
and revenue generated by any concern. There have been differences in forms of payment and
market exchanges which compiles government for implicating legal actions and implication of
implicit or explicit threat of force.
Taxation system:
It is a system where all revenue and income generated by an individual and corporation
will be charged on the basis of income scales and tax slabs. There are various acts and
amendments which are being presented by legal authorities in UK, US and Hungary with respect
to make appropriate development of policies (Public Economics: Indirect Taxation, 2016). The
purpose behind charging taxes on commodities and earnings is for generating reserves and
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revenue for government for their capital expenditures. It includes developing infrastructural
facilities in country, improving wealth of society as well as funding in various development or
disaster management activities.
In UK there have been influences of HMRC or central government in tax planning and
controlling the taxation system of economy. They primarily consider the income tax, national
insurance contribution, value added tax, fuel duty, corporation tax etc. to manage the economic
stability.
Clear analysis over UK taxation system with identifying 4 direct and indirect taxation
systems
The clear examination over the UK taxation system on which there are various direct and
indirect taxes which have been levied by government in respect to make appropriate
ascertainment of the charges which are to be collected from the individual (von Ehrlich and
Radulescu, 2017). However, in this country there is taxes have been based on central and local
governmental operations which are to be charged by them with respect to generated reserves for
capital expenditures. There are various direct and indirect taxes which are currently enacted by
UK government in practice such as:
Direct taxes:
In accordance with the influences of central government on which HMRC makes plans
and policies for analysing the costs implicated in various activities. These governs the taxation
system for the major tax practices in the country (Liu, 2018). It includes the taxation for practices
which includes:
 Income tax
 Corporation tax
 inheritance tax
 capital gain tax
Indirect taxes:
In respect with considering the indirect taxes which are to be payable and legislated by
the local and state government. These are the taxes which were charged on product and services
along with its total price (Onaran, Nikolaidi and Obst, 2017). There will be influences of the
central government only for passing the bills or making changes in the rates of taxes. It includes
the taxes such as:
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 Sales tax
 Value Added tax
 Excise duties
 Stamp duty
Taxation legislations in UK which have implications for national taxation
In UK there have been consideration of various legislative influences which have been
enacted by the government in context with developing fair taxation practices (Sikka, 2017).
However, there are various laws and amendments which have been made by legislative
authorities stated in UK and various countries. EU have made various laws which are relevance
with the taxation and the civil operations in country. In approach towards it there have been
influences of various taxation legislations such as custom duties, CJEU etc.
Along with this there are various taxable remedies which were being presented by the EU
laws in UK which helps in protecting SME's to have fair operational practices which will be
adequate in managing their growth in the society (McCluskey and Franzsen, 2017). Moreover,
there have been various taxation which were levied on the transportation of the goods such as
Vehicle excise duty, fuel duty, air passenger duty.
M1 Critical examination of taxation system in several countries
Critical analysis on the different taxation system which are operating close economic and
trade practices with UK
In relation with analysing the trader practices made by various other nations with UK on
which they various wants and requirements which will be attentive and helpful to the
government in meeting the targets at the right time. EU countries are highly engaged with
making trade practices as well as operating close economic practices with UK. There have been
various amendments and legislation which have been made by the government of these countries
to protect the rights of individual as well as corporations in UK (Cromwell, 2017). There have
been special allowances and remedies which are being involved in country which helps them in
taking advantages of such policies. UK has implications to the national taxation system where
countries are members of trade blocs.
In consideration with APEC (Asia- Pacific Economic Cooperation) which is facilitating
the free trade services in entire Asia- Pacific regime. The motive is for financially developing the
organisation to have appropriate independent growth in the time. However, it was being
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established with respect to promoting the trade practices among nations as well as having
favourable economic growth in the times (Chepulis and et.al., 2018). Along with this this trade
bloc have helped in developing the agriculture and raw material businesses other than EU.
Moreover, NAFTA (North American Free Trade Agreement) However, this agreement
will be based on facilitating the adequate free trade practices among the nations. Thus, on which
there will no duty charges levied on the material which are delivered and received by the
member countries.
Interrelationship between two taxation system which are performing in 2 different
countries
As per considering taxation operations which are being performed in US and UK have
various similarities in the legislations, laws and regulations. Therefore, it can be said that, the
corporate tax rates in both the nation have comparatively similar rates. UK has 20% while US
has 21% of the rate. In respect with such rates on which it can be said that US is charging
comparatively higher corporate tax than UK (Hirsbrunner and Lauterjung, 2017). Therefore, in
accordance with OECD US have corporation tax of 39% on average which is twice of that which
is paid in UK. However, there have been taxation rates which varies between states.
TASK 2
P2 Determining the tax liabilities for unincorporated industries
Unincorporated organisation:
These are the business ventures on which there are influences of group of individuals
which come across of various nations in relation with retaining proportionality. Thus, they
operate the business as voluntary practice on which they require contractual agreements,
responsibilities for debts as well as contractual obligations (McKee, Muir and Moore, 2017).
There has been variation in taxable implications as many of them will be charged on the profits
earned by them on the corporate rate taxes while clubs, association, community and society are
also being liable to make taxable payment on the basis of corporate tax rates.
Characteristics and background:
There have been various features and characteristics of these unincorporated associations
which are based on several variations in the skills and innovations such as:
 Establishment costs: In relation with launching an unincorporated firm in the market
there will be no requirement for having any registration of the firm (Moore, 2018).
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Therefore, there will be no requirement of large amount of funds which will be invested
in the business.
 Liabilities: These organisations do not have any legal identity in the market. Therefore,
the group of individuals which have planned to operate a voluntary business with a
motive to retain the profits which do not support any identification in the market.
Therefore, in respect with this, there will be no such liabilities and trade of ownership
(Haag, 2017). Along with this, these businesses are self-governed of in partnership where
no more than 10 employees will work so their only liabilities and debts are associated
with making payment to the staff, suppliers and interest in bank as if they took any loan.
 Tax treatment: In relation with analysing the tax consequences which are associated
with the unincorporated association on which majority of them make payments on the
corporate tax rates (Rowland, 2017). Club members, sports and various relevant business
may also make payment to the government on their earned revenue.
 Ongoing governance and regulatory obligations: There have not been any obligation
and influences of government in voluntary business as if there are any unlawful and
illegal activities performed by any individual.
Advantages and disadvantages of unincorporated industry:
In respect to the operational performance and the activities which are being performed
under Unincorporated organisation there can be various benefits and loopholes associated with
the trade practices and the operational activities by such industries.
Advantages
 No restrictions on the entry and exit
 No requirement of registering the
organisation
 Lower cost implication in various
activities.
 Requirement of small workforce as it is
self-governed business.
 Higher profitability.
Disadvantages
 It does not become able to create the
identity in the market.
 Improper ascertainment of cost implied
in the business as there is lack of
accountability.
 Lack of appropriate governance in
terms of partnership business as there
will be chances of having various
loopholes.
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Personal taxation and taxation relevant with partnership and sole traders
The term personal taxation is referring to the taxation practices which have been made by a
person on their own such as analysis over the own tax consequences as well as remedies
associated with the business (Lacey, McMunn and Webb, 2017). Moreover, there will be less
influences of any legal tax practitioner who would make efforts and analysis over the income
generated by the organisation.
Sole trader: Here the business is governed by a single person which is liable for collecting
all the information and making appropriate cost analysis based on various operations in the
organisation. Therefore, in respect with this, there are various tax consequence which allows the
professionals in making qualitative efforts. Here the owner will analyse the income generated by
his business throughout year on which they measure taxable income (Theodore, Theodore and
Syrrakos, 2017). The identification of such taxable income will be based on analysing the
remedies and allowansce3s which have been awarded by government will be adjusted by their
own.
Partnership: In partnership firms there will be influences of more than 1 person. Thus, in
rems of decsidi9mn g the tax remedies and payments which are to be made by them on their
generated income which requires them to make planning and decision based on such issues (von
Ehrlich and Radulescu, 2017). Moreover, here the company is itself makes payment to taxes on
the basis of analysing the charges, taxable slab as well as deductions.
M2 Implicating models and interpretation of outcomes.
Calculating taxation liabilities
In relation with analysing the tax consequences as well as various liabilities’, remedies
which are being associated with the unincorporated organisation will be measured in
identification of tax liabilities.
TASK 3
P3 Identifying tax liabilities for incorporated industry
Incorporated organisation: In respect with analysing the legal structure of the
incorporated business unit which has their own legal identity in the market. These are denoted
similar as a person who is being operating the trade practices among the society. therefore, in
respect with the framework of these organisations where group is not being liable personally for
the group actions (Onaran, Nikolaidi and Obst, 2017). Therefore, there will be requirement of
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intention of the group in respect with making trade practices as well as raising the large sum of
money. On the other side, there will be issues and consequences relevant with the legally binding
contracts with approach toward generating large sum of profits such as Ford Motor Corp.
Characteristics:
There are various key aspects which will be helpful in terms of determining the features
and characteristics of these organisations stated in the market. Therefore, there are several
elements which are to be analysed and recognised such as:
 Liability and risks: There will be benefits to the group of people operating a business.
Thus, if there are any consequences incurred the individual liabilities have been reduced
by them. Moreover, there will be reduction in the risks which are associated with the
debts of the business (McCluskey and Franzsen, 2017). If Ford faces any issues and
problems which is not being personally bared by any individual while the entire group
will look to it.
 Ownership: In relation with ascertaining the information relevant with the ownership of
the incorporated groups where they can own a property as well as can enter into
contractual agreements with others. Therefore, they have rights to make contracts and can
make capital expenditures.
 Cost: There have been incurrence of costs which will be required for making start up in
the business (Hirsbrunner and Lauterjung, 2017). Therefore, there will be fees which has
to be payable by the organisation in terms of making registration where it depends on the
variation in its structure.
 Regulations: there can be various legislations and regulation which will affect the
performance of the organisation. Therefore, here one or two legal bodies which will
create administrative burden on the business. However, in respect with Ford Motor Corp.
they will be influences by variations in legal structure from UK, US and Hungary.
Advantages and disadvantages
There are various benefits and loopholes which are associated with the incorporate organisation
such as:
Advantages:
 It can either be limited by the shares of
guarantee.
Disadvantages
 There will be requirement of reporting
to the CIC regulators and Companies
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 It allows payment to directors.
 There will be no restrictions relevant
with the aims of the business which
defines as for the public benefits
House.
 There will not be any taxable
advantages
Difference between private and public limited companies:
Particulars Private Public
Meaning There will be no minimum paid up
capitals as well as there are proper
rights to transfer the shares which
are restricted.
Similarly, there will be no paid-
up capital. Moreover, the
subsidise organisation in public
company will be denoted as
public company of the
organisation.
Formation There will be minimum number of
people which are operating the
business activities are 2 while the
maximum is 200
In this aspect there are minimum
number of members are 7 while
maximum number of members
are limitless.
Taxation advantages for each organisation
Private organisation:
In relation with analysing the operations of the private organisation on they have to make
payment for the taxes on the basis of corporate tax rates.
Public Organisation:
In respect with analysing the operational aspect there are various field on they will be
awarded deductions which will be helpful to them in meeting the tax consequences.
M3 Application of relevant models and interpretation of outcomes
In relation with analysing the tax consequences as well as various liabilities’, remedies
which are being associated with the Incorporated organisation will be measured in identification
of tax liabilities.
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TASK 4
P4 Determination of impacts of key legal and ethical constraints on different industry
Ethics:
Ethics are the morals, beliefs, values, knowledge and learning of people that govern
individual action. Managing ethical business function is necessary for the organization because it
helps the management in deriving wrong and right of the situation with regard to stakeholders. It
is important for the automotive firm to work under ethical constraints because it assists in
protecting interest of stakeholders (McKee, Muir and Moore, 2017). For example, fair
presentation of expenses and accounts is the ethical constraint for Ford which helps in
organization in reducing risks of tax avoidance which is ultimately contribution for economic
development. Further, ethics constraint to Ford are also related with consumer concern where it
is necessary for the organization to demonstrate fair and true advertisement because it is a long-
term investment for shoppers.
Ethics constraints across different nation
Ethics vary nation to nation because every region has own cultural, values, beliefs and
morals which governs individual action. Further, ethical constraints of every region differ
according to situation of the particular nation. Like business ethics are shaped by legislation
followed in different nations (Moore, 2018). Further, ethical constraints of Ford differ according
to responsibility and role of management in different regions which changes according to
consumers response towards services. However, it can be said that business ethics is the core
aspect of ford which support its international expansion.
Key legal and ethical constraints on various organisation such as unincorporated and
incorporated.
There will be various differences in the legal and ethical constraints of the unincorporated
and incorporated organisation. Therefore, unincorporated industries are legally not bound with
getting registration as well as meeting the legal aspects of the firm (Theodore, Theodore and
Syrrakos, 2017). While incorporated industries are legally bound for making qualitative efforts
as well as ascertainment of the ethical constraints.
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M4 Critical evaluation of impacts key legal and ethical constraints on application to different
organisation.
In relation with analysing the key legal aspect which are associated with the taxation
purposes that determines the purpose and role of business in collecting taxes. Therefore, there are
several indirect taxes which are to be considered by the professionals in industry such as value
added tax, national insurance, PAYE as Income tax. Therefore, influences of various legislations
which will be adequate in meeting the taxable payment of organisation at the right time.
CONCLUSION
On the basis of above report, it can be said that taxable legalisation over the earnings and
revenue generated by the organisation as well as individual are required to be taxable. Thus,
there had been determination over the various abatable liability of unincorporated as well as
incorporated organisation which will be beneficial in making appropriate taxable payments.
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REFERENCES
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in the uk household longitudinal study.
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von Ehrlich, M. and Radulescu, D., 2017. The taxation of bonuses and its effect on executive
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Online
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