Article Writing Homework Help

Hi, I am looking for someone to write an article on business venture of john jones Paper must be at least 2000 words. Please, no plagiarized work! “Corporation Tax shall be charged on profits of companies, for any financial year for which parliament so determines, and where an Act charges corporation tax for any financial year the Corporation Tax Acts apply, without any express provision for that year accordingly.”(Sec 6(1) of Income and Corporation Taxes Act, 1988)1.

Subsection 2 of section 6 of the same act further states that income tax shall not apply to the income of a company. Accordingly, as far as incorporated businesses are concerned, their taxable profits are not subject to income tax. Instead, they have levied corporation taxes on profits.

Business incomes are assessed as per Case I and Case II of Schedule D of the taxes Act, 1988. The profits reflected as per accounts of an incorporated business, however, are required to be adjusted with the following two factors:

The business expenditures deductible from business receipts should be incurred wholly and exclusively for business purposes. What is wholly and exclusive for the purpose of a trade is a question to be determined as per the principles of ordinary commercial trading. Expenditure may be allowed in one business, whereas that may be wholly extraneous to another business. The basic principles to judge wholly and exclusive character relating to a business of any expenditure is as under:

As per Viscount Cave LC4 “ A sum of money expended, not of necessity and with a view to direct and immediate benefit to the trade, but voluntarily and on the grounds of commercial expediency and in order to facilitate the carrying on of the business, may yet be expended wholly and exclusively for the purposes of trade.”

Expenses claimed should have been incurred in the accounting period. Expenditure incurred prior to or subsequent to the relevant accounting period, cannot be allowed as a deduction, even though those are paid for during the relevant accounting year. Simply speaking expenditure should match the revenue credited to the income statement.