Analysis of the UK Taxation System: Telereal Trillium Case Study

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Taxation Systems and the Legal and Ethical Considerations: Assignment 1
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Table of Contents
INTRODUCTION:..........................................................................................................................3
1.......................................................................................................................................................4
2.......................................................................................................................................................5
3.......................................................................................................................................................6
4.......................................................................................................................................................7
5.......................................................................................................................................................8
CONCLUSION:..............................................................................................................................9
REFERENCES:.............................................................................................................................10
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INTRODUCTION:
This report is based on the taxation system of Telereal Trillium about the manner of paying the
tax, when, how and also on whom tax is applied. Their legal and moral responsibilities will also
be discussed in the following report. By setting up the business, there should be full knowledge
about the taxation system and also their types which somehow provide benefit in the running of
the business. Tax collectors role is also going to be discussed in the report along with providing
the requirements of income reporting and transactions recording for the taxation.
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1.
Tax is said to be an amount which is paid or given to the government in terms of money and it is
based on the income of an individual or cost of goods or services purchased. By this, the
government can be able to provide public related services so that no person can face the problem
related to any type of service. For example, the gross income of the person is said to be the
money that a person earns before deducting of the tax from that income. Whenever a particular
company or person is taxed, then they have to pay their income's part to the government.
Whereas, when the goods are said to be taxed, then a price's percentage has to be given or paid to
the government mandatorily. In other words, tax is a mandatory contribution related to finance
which is enforced by the government for the purpose of raising the revenue and it is charged on
the persons or organization's income or property, on the cost of production and prices of sales of
goods and services, etc. Tax is not like that which can be ignored for paying, if anybody forgets
to pay the tax then he/she will definitely charge some extra fees regarding this matter.
As modern societies are very materialistic and money plays the part of the incentive for engaging
the people in working. Taxation is important for the government as it helps in revenue generation
so that the government can be able to pay the personnel or representatives and also helpful in the
funding of the operations or projects that were managing by the government. Without taxation,
many benefits of the states could not be provided such as infrastructure, health facilities, etc. and
also no person wants to work in the public sector. Taxation is very essential as the income
generated from this is helpful in making the bridges, railways; transports, health-related
education, generating electricity and also providing the subsidies in many items that are used by
the common person. Telereal Trillium requires money so tax plays the part of generating the
money from the people who engage in the work.
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2.
Let's start with the great saying which is said by Albert Einstein that “The hardest thing in the
world is to understand is income tax”. Taxation is the normal or general concept that is used by
the government in order to attract money or things from people or various other organizations by
using the law and legislation (Beretta, 2018). The taxation system of the UK is complicated, it
can be said that the UK based tax contains many provisions and is very large. In the taxation
system of the UK there are mainly three different levels of the government to which taxation
amount is to be paid such as- central government, local government, and devolved government.
Revenue generated by the central government mainly arises from the income tax; value added
tax, corporation tax, and fuel duty. While local government generates revenue from the funds
provided by the central government. Basic tax taxes that are incorporated in the UK are income
tax, property tax; value-added tax, and UK inheritance tax. The national insurance number is
mandatory for paying the tax in the UK by the taxpayers. The tax year of the UK is set from the
6 April of one year calendar to 5 years April of the subsequent year. If an individual work in the
UK for 365 days without break then he is said to be taxpayer resident of UK. Commercial tax is
also applicable in the UK that is referred to as value-added tax (VAT) or sales tax it is applicable
on the goods and services. The standard applicable commercial tax rate in the UK is 20 %,
reduced rate of VAT IS 5 %. Due to the regime of the taxation system, it contributes to avoiding
the double taxation system also helps in reducing the cascading effect in the country. The
taxation system develops the economy of the country and helps in generating the revenue to the
government that will further utilized for the benefits of the country. Taxation legislation indicates
the in examining how changes in income tax of an individual affect the long term growth over
the national taxation, by the economic growth the GDP of the nation is also developed.
Sometimes international Telereal Trillium faces the issue related to the double taxation, so to
overcome these types of issues taxation legislation is considered, because due to legislation
various treaties are made in order to reduce issue of double taxation and avoidance of the double
taxation in these signatories various treaties are signed in order to limit the taxation of
international business (Brand, 2016). A pension scheme is also one of the legislation that is
considered in the UK because the pension scheme provides the deduction and rebates in
computing the overall liability of tax of national taxation. Therefore the taxation system of the
said country is comprehensive in nature and the taxation legislation also provides the implication
over the national taxation.
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3.
In a then multifaceted highly global business environment of the 21st-century Telereal Trillium
faces thousands of ethical issues, therefore in order to respond with these types of ethical issues
Telereal Trillium should incorporate the code of conduct that should be abiding by and must be
put into the action. Ethics generally means the inner conscience of the person that what is wrong
and what is right, the result depends on the action of the actor. The ethical issue can be reduced
with the help of the code of conduct and integrity. Proper compliance of the code of conduct
contributes in overcome the ethical issues. Key ethical and legal constraints faced by the Telereal
Trilliums and their impact over the different organizations are enumerated below:-
 The decision of ethical advertising: - Advertising is one of the most important features of
Telereal Trillium in order to increase the demand of the product and the services of the business
among its customers and in increasing the customer base also. Advertising is the marketing tool
that enables the sale of products and services of the Telereal Trillium. But the important is that
advertising should be done in an ethical manner, it should reflect the truthfulness of the goods
and services which are going to be sold in the market (Graham, 2015). Unethical practices and
issues are faced by the Telereal Trillium that provides the adverse impact over the different types
of organizations like degrades the product quality and produce the misleading image of the
Telereal Trillium. Therefore it should be stopped and ethical advertising policy should be
adopted.
 Compliance and governance issues: - Business in this global environment is expected to
comply with all the applicable rules, regulation, fiscal and monetary policies that reduce the
chances of the risk in the Telereal Trillium. By abiding with the applicable standards and rules of
Telereal Trillium all goals can be achieved in a smooth manner with great efficiency. This
compliance also mitigates the future occurrence of legal risks such as the imposition of legal
fines and penalties. Lack of compliance as per the government provides a negative impact on the
Telereal Trillium and decreases the goodwill of the company. Therefore Telereal Trillium must
comply with the applicable compliance and government policies and standards.
 Intellectual property: - Intellectual property is an intangible asset to the Telereal Trillium.
Intellectual property is the creation of mind and is owns by the company to protect the rights of
the Telereal Trillium. Intellectual property is relevant to art, leisure, literature, and symbols,
intellectual property rights protect and safeguard the right of the company to use by another
company. Intellectual property limits the right to use the invention designs produced by others.
Absence of Intellectual property within the Telereal Trillium provides the negative impact that
makes the Telereal Trillium suffer from loss and damages. Intellectual property is the ethical
constraint that is faced by various Telereal Trilliums. Therefore, intellectual property should be
implemented within the Telereal Trillium so that the company can secure and protects its
intellectual property rights.
All the above points show the key ethical issues and legal constraints and their impact over the
different types of organizations (West, 2016). All these ethical and legal constraints affect the
Telereal Trillium. Therefore proper care must be carried out to avoid the negative effect on the
Telereal Trillium.
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4.
The purpose of district tax and revenue collectors and financing officers in terms of serving is
similar which is to conduct financial management duties of the states at the district level. The
first and foremost work of the mentioned officials is to collect and then distribute taxes of local
property on the state's behalf for the purpose of funding the vital services like roads, gardens
(parks), schools and cities. Offerings of the additional service may sometimes change according
to the states or even sometimes according to the county. The role of tax collectors is to govern
how much tax is collected or how much tax is outstanding from the individual and businesses on
the state, local governments and federal's behalf (Bankman, et. al., 2018). Reviewing the tax
returns, conducting the audits, identifying the tax that was owed and also collecting the unpaid
payments of tax. Tax collectors should do the following:
 Reviewing the filed tax returns in order to determine whether the deductions and credits are
permitted by law.
 We should contact the payers of tax to find the problems and also to request them to provide
proper documentation.
 Conduct the field investigations and audits of the income tax returns for verifying the
information and also to update the liabilities of tax.
 Assess the financial related information, by understanding the accounting procedures and also
the knowledge of changes that are occurring in the rules and regulations of tax.
 Keeping each of the records that were dealt with by them, includes taking of any action, phone
numbers, and contacts.
 Inform the taxpayers about any underpayment or overpayment found and either requesting the
additional payment or refund issuance.
Apart from all of these responsibilities, tax collectors should ensure about the approximate
amount of tax collected by the people. Income and sales taxes are collected by the state
governments whereas property and sales taxes are collected by the local governments. Usually,
tax collectors deal with the simplest returns of tax like those filed by the single tax givers who
claim few deductions and those taxes that were filed by the small type of businesses. However,
tax collectors also have the right of contacting at any time to the taxpayers about the issues
occurred during the tax return process (Dietsch, and Rixen, 2017). The process of collecting the
outstanding payments begins with the revenue representative or tax examiner can send the report
to the tax payable person. If the taxable person is making no effort in paying then the case is
assigned to the collector.
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5.
Accounting systems are helpful in producing the basic information for the purpose of reporting
of the tax and their central use is to give reliable information to the management so that the
decisions can be taken and also business can be operated in an effective and efficient manner.
There are certain requirements in recording the transactions: such as keep the sales records, proof
of purchase, keep records of employment, should have financial year end records (Dal-Ré, et. al.,
2016). If the income of an individual must be equal or higher than the set taxable cycle then that
individual is liable to pay the tax otherwise he or she is not liable to do so. The taxable cycle is
updated every year as the income of the individual changes every year.
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CONCLUSION:
Considering the above report, in respect of Telereal Trillium it has been found that there is a
brief discussion about the taxation system of the United Kingdom is done in a proper manner.
How it is helpful and what issues are facing by the country regarding this. A country should
follow the lawful taxation system so that no problems occur whether it is government or an
individual. Eventually, it the right of every individual to pay the tax on time that allows the
government to do its operations or activities.
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REFERENCES:
 Bankman, J., Shaviro, D.N., Stark, K.J., and Kleinbard, E.D., 2018. Federal Income Taxation.
Aspen Publishers.
 Beretta, G., 2018. The Meaning and Scope of the Ancillary Principle Under Model Tax
Conventions. Intertax, 46(8), pp.639-653.
 Brand, C., 2016. Beyond ‘Dieselgate’: Implications of unaccounted and future air pollutant
emissions and energy use for cars in the United Kingdom. Energy Policy, 97, pp.1-12.
 Cossu, M., 2017. Behind Professional and Institutional Activism in the Capital Markets.
Cultural, Economic and Legal Constraints.
 Dal-Ré, R., Ross, J.S. and Marušić, A., 2016. Compliance with prospective trial registration
guidance remained low in high-impact journals and has implications for primary endpoint
reporting. Journal of clinical epidemiology, 75, pp.100-107.
 Dietsch, P. and Rixen, T., 2017. Global Tax Governance. ECPR press.
 Graham, L., 2015. Internal control audit and compliance: documentation and testing under the
new cost framework. John Wiley & Sons.
 Keegan, B., 2017. Taxes, organizations and decisions fiduciary tax compliance in two modern
economies.
 West, W.F., 2016. Controlling the Bureaucracy: Institutional Constraints in Theory and
Practice: Institutional Constraints in Theory and Practice. Routledge.
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