Irrespective of where a country lies in terms of development, the enactment of the tax levy will affect it. Certain ethical implications may arise from these impositions. Legally tax planning and avoidance are allowed. Tax planning is using acceptable methods the country’s revenue service accepts; to reduce income and/or increase expenses; which results in a decrease in annual income. Tax avoidance is similar to tax planning; however, the tax payer may only do so if the methods they use to reduce their income is not illegal in any manner.
In my opinions, the imposition of tax is one of most appropriate method to reduce the negative externalities, yet not effective and efficient, which fulfill the needs of governments to access the cost of the society of a particular negative externalities. As one of common policy of government, there are three aspects that exert positive influence on both society and economy. Taxation on negative externalities provides incentives to reduce the negative externalities. Regard as social efficiency, it is the best solution. Besides, to some extent, Taxation will raise revenue for the government.
As stated in “Ban the Ban!” “ People might think it is not important because it is just soda but it is so much more than that-- it is freedom and the freedom to make your own decisions about what you do and what you put into your bodies”- SidneyAnne Stone. This illustrates that we as the people should be responsible for our own actions. The soda ban will take away some our our freedom and that is not right because we are known as a free country. Although some people may think the soda ban is a good idea, it is a bad idea to limit the amount of soda a person can purchase because the ban was not fairly put into law, it can open the door to other types of laws that might limit choices, and it limits peoples options. The soda ban is a bad idea because it was not fairly put into law.
A rise in this ratio can signify that the firm has a competitive edge in the market and so it is able to charge higher prices for its products, or the firm is able to obtain its supplies at a lower cost. If this ratio remains stable while the net profit ratio is falling, which is the case for EYSI; this can signify that the control over expenses is weak. (CIMA, 2012) mentioned that the net profit ratio signifies the profit from trading operations before the interest costs are
This implies that taxation will make a positive impact on employment and be beneficial to the economy if labour tax rate reduces (Apere, 2003). Studies have observed the existing behaviour of tax evasion and tax avoidance and both imply the reduction of the tax bill. The behaviour of tax avoidance is regarded as legal; it is the use of strategies that makes it possible for any taxpayer to minimise tax in a legal way, and to search for strategies for the exploitation of deficiency or uncertainties in the law, which is regarded as aggressive tax planning strategies. However, both tax avoidance and tax evasion use as non-compliance by economic literatures, even though tax evasion is illegal by its nature, (Freire-Sereny and Marti, 2011). Bonu
Consumers are willing to pay for the visual attributes and functions without paying for the quality. Consumers are also expected to prefer counterfeit products with a famous brand name attached that would be meaningful to the consumer (Cordell, 1996). According to (Chow-Hou Wee, 1995), it has been recognized that attitude influences behavioural intention. There are effects of two specific issues on consumers’ behavioural intention which are attitude towards counterfeiting and attitude towards market practices. If a person’s attitude towards counterfeiting is favourable, it is highly likely that he or she would consider the purchase of counterfeit products.
Price elasticity of supply of the product and its substitute and complements and decreasing of price will be beneficial if the demand of its product is elastic. As the decrease in price will lead to increase in total revenue in which decreasing in price will be beneficial if the elasticity of supply for its substitute is high but in case if it is low, consumer will not shift to other substitute as the firm lowers the price for that
Devaluation has both pros and cons which can be observed as follows:- Pros 1. Exports tend to become cheaper and more competitive to foreign buyers. This provides a major boost to the domestic demand and also help in job creation in the export sector 2. The domestic goods prices remain the same as the country can attain increasing foreign exchange reserves without affecting the domestic value of their currency. 3.
Pro’s: They can often operate more cheaply than formal banks and therefore provide the loans under better conditions. This acts to support economic growth. Normal bank loans are much safer, but that makes them also more expensive. Lower yields and higher fees. Because they are not subject to heavy regulation they can also offer services that banks are not able or are not willing to.