Taxation System and Liabilities for Ford Motor PLC

TAXATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Demonstrating the taxation system which would be effective in governing economic
operations of country in context with Ford Motor PLC..............................................................1
M1 Comparing the taxation system stated in different countries...............................................3
TASK 2............................................................................................................................................4
P2 Exploring the taxation liabilities for unincorporated organisations.......................................4
M2 Application of models and formula for interpreting data and determining the taxation
liabilities for unincorporated organisation..................................................................................6
TASK 3............................................................................................................................................6
P3 Exploring the taxation liabilities for incorporated organisation............................................6
M3 determining the taxable liabilities for Ford Motor PLC.......................................................8
TASK 4............................................................................................................................................8
P4 Analysing the key legal and ethical constraints on different organisations...........................8
M4 Application of Key legal and ethical constraints..................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Taxation is a method through which a legislative authority in any economy levy taxes on
the income generated by a person or a corporation. It helps in bringing stability in the economy
as per generating appropriate amount for reserves and revenue through taxable collection. In the
present report, there will be discussion based on taxation system and policies which have been
adopted and governed by various countries such as UK, US and Hungary. In context with the
case scenario of Ford Motor PLC (an automotive industry) on which there has been
ascertainment of taxable income of Henry ford as per income tax as well as corporate tax of the
organisation.
TASK 1
P1 Demonstrating the taxation system which would be effective in governing economic
operations of country in context with Ford Motor PLC
Introduction to Ford Motor PLC:
Ford is a multinational Automotive industry and have been headquartered in Dearborn,
Michigan. The company is being engaged in producing the large number of automotive designs
which includes luxury cars, SUV, Hatchback etc. It has been operating in many nations and have
employees more than 213,000. Moreover, in the present report, there will be analysis over the
taxation system adopted by the branches of Ford in Hungry, UK and US.
Taxation and taxation system (direct and indirect):
Taxation is the compulsory levy of charges on the income and profits generated by
corporation which have been collected by the government. However, the motive behind such tax
collection is basically for generating the revenue, reserves and funds for utilising in developing
the economy as well as directing the operational growth of the economy.
On the other side, in relation with considering the taxation system in any nation there
have been influences of various charges which were being levied on the purchase and sales of
products and services as well as revenue generated by the professionals for making adequate
ascertainment of profitable gains (von Ehrlich and Radulescu, 2017). These are being classified
in direct and indirect charges levied on the income such as Sales tax, value added tax, inheritance
tax, income tax, corporate tax, national insurance cover etc.
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Defining the taxation system in UK and explaining the Direct and indirect taxes
UK has been denoted as a well-developed nation and have influences of various laws and
legislations which are being useful for performing the adequate taxation practices in the country
(Song, Seetaram and Ye, 2019). The main taxation authority is being based on regulation
imposed by HMRC in which are mainly based on collection for direct taxes levied on the income
and profit generated by an individual or an organisation. On the other side, the local government
in UK is governing the indirect taxes.
Taxes Explanation
Direct taxes
Income tax These are the taxes which have been charged on the
income generated by a person through self-
employment, employment in organisation as well as
through capital gains. These are in direct control of
central government and HMRC.
Corporate tax These taxes are being charges on the revenue
generated by businesses in respect with operating
the business operations in the market (Gemmell and
et.al., 2018).
Inheritance tax This are the levies on the real estate of any
individual and organisation. It includes property,
money and possession of a person after the death of
main owner. Therefore, these are the taxes which
has to be given by the beneficiary in HMRC
Capital gain tax These are the taxes which have been levied on the
assets which have been sold by a person or a
business (Direct and indirect taxes, 2019).
Indirect Taxes Sales tax These are the taxes which have been payable by the
business in the sales of its goods and services
(Wallis, 2016).
Value added tax These are the charges which have been levied by the
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