Taxation Table of Contents

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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