Private Company Limited by Shares

An Analysis of Tax Accounting Rules in the United Kingdom and Germany

Libro Especializado , 2008 , 272 Páginas

Economía de las empresas - Contabilidad e impuestos

The study consists apart from the introduction of five main chapters. In the following Chapter Two of the study, references are outlined for conducting international tax burden comparisons. In the process, not just relevant requirements but also the benefits and drawbacks of each method are described. Subsequently, selection follows of the analysis method to apply herein. This is complemented by an outline of the UK and German tax systems and of key determinants that shape the tax law in each case. Finally valid corporation tax regulations are characterised for the United Kingdom and Germany respectively. This mainly entails a description of individual tax liability and a breakdown of the broad structure of the tax assessment bases.
In Chapter Three, comparative examination is conducted of tax assessment bases for selected balance sheet items in the United Kingdom and in Germany respectively. In the first part of the chapter in reference to the authoritative principle under which tax regulations refer to commercial accounting regulations, initially the commercial accounting framework concepts are analysed applicable in the countries. In order to avoid differentiation uncertainties in the second part of the chapter, the general recognition criteria and value measures are discussed for balance sheet items. In the last and most extended section, finally a qualitative
examination is conducted of balance sheet items from tax point of view. The balance sheet items concerned
have been split for examination purposes generally according to the country between the United Kingdom
and Germany as well according to respective item classes of definition, recognition, measurement and
disposal. In conclusion to each partial examination, key similarities and differences are summarised and
assessed applying qualitative perspective.
In Chapter Four, the comparative assessment is extended to also comprise profit and loss items. The
approach applied refers to the cost method structure, comprising apart from qualitative examination of tax
treatment of selected profit and loss items also an analysis of general treatment of revenues and deductions respectively. Further the treatment of tax losses is discussed in the United Kingdom and in Germany respectively.
Applicable corporation tax rates in the United Kingdom and in Germany are examined from both the
qualitative and quantitative perspectives in Chapter Five. [...]

Inhaltsverzeichnis (Table of Contents)

• ABBREVIATIONS.
• 1. INTRODUCTION
  • 1.1. PURPOSE OF STUDY.
  • 1.2. SCOPE OF THE OBJECT OF INVESTIGATION.
  • 1.3. OUTLINE OF THE STUDY
• 2. FUNDAMENTALS.
  • 2.1. INSTRUMENTS FOR THE EXECUTION OF INTERNATIONAL TAX COMPARISON.
    • 2.1.1. PREFACE
    • 2.1.2. QUALITATIVE METHODS OF INVESTIGATION.
      • 2.1.2.1. COMPARISON OF LEGAL RULES
    • 2.1.3. QUANTITATIVE METHODS OF INVESTIGATION
      • 2.1.3.1. CASUISTIC SIMULATION OF ASSESSMENT
      • 2.1.3.2. COMPARISON OF TAX RATES.
      • 2.1.3.3. ANALYSIS OF EMPIRICAL DATA.
      • 2.1.3.4. EFFECTIVE TAX RATES
    • 2.1.4. CHOICE OF A PARTICULAR INVESTIGATION METHOD
  • 2.2. THE TAX SYSTEM AND INFLUENCES OF TAXATION
    • 2.2.1. PRINCIPLES OF TAXATION.
    • 2.2.2. SOURCES OF THE TAX LAW
    • 2.2.3. GENERALLY ACCEPTED ACCOUNTING PRACTICES.
    • 2.2.4. OBJECTIVE AND PURPOSE OF THE COMMERCIAL AND THE TAX BALANCE SHEET
  • 2.3. CHARACTERIZATION OF THE CORPORATION TAX.
    • 2.3.1. PERSONAL TAX LIABILITY
    • 2.3.2. BASIS OF ASSESSMENT FOR THE CORPORATION TAX.
      • 2.3.2.1. ADJUSTING THE ACCOUNTING PROFIT AND VALIDITY OF THE AUTHORITATIVE PRINCIPLE..
      • 2.3.2.2. SCHEME FOR THE CORPORATION TAX COMPUTATION.
    • 2.3.3. PERIOD OF DETERMINING INCOME FROM TRADE
  • 2.4. FURTHER PROCEEDING
• 3. COMPARISON OF CORPORATION TAX ASSESSMENT BASES I: BALANCE SHEET ITEMS
  • 3.1. PREFACE
  • 3.2. CONCEPTUAL FRAMEWORK AS CORE ELEMENT FOR THE DETERMINATION OF INCOME.
    • 3.2.1. BASIC ASSUMPTIONS
    • 3.2.2. QUALITATIVE CHARACTERISTICS OF FINANCIAL STATEMENTS
  • 3.3. GENERAL TREATMENT OF BALANCE SHEET ITEMS.
    • 3.3.1. RECOGNITION CRITERIA
    • 3.3.2. VALUE MEASURES
  • 3.4. ASSETS SIDE
    • 3.4.1. INTANGIBLE ASSETS (NON-CURRENT)
      • 3.4.1.1. DEFINITION..
      • 3.4.1.2. RECOGNITION.
      • 3.4.1.3. MEASUREMENT.
      • 3.4.1.4. EXCURSUS: DISPOSALS..
      • 3.4.1.5. MAJOR SIMILARITIES AND DIFFERENCES.
    • 3.4.2. TANGIBLE ASSETS.
      • 3.4.2.1. PREFACE.
      • 3.4.2.2. PROPERTY
        • 3.4.2.2.1. DEFINITIONS.
        • 3.4.2.2.2. RECOGNITION.
        • 3.4.2.2.3. MEASUREMENT.
        • 3.4.2.2.4. EXCURSUS: DISPOSAL
        • 3.4.2.2.5. MAJOR SIMILARITIES AND DIFFERENCES
      • 3.4.2.3. MACHINERY, PLANT AND EQUIPMENT.
        • 3.4.2.3.1. DEFINITON.
        • 3.4.2.3.2. RECOGNITION.
        • 3.4.2.3.3. MEASUREMENT.
        • 3.4.2.3.4. EXCURSUS: DISPOSAL.
        • 3.4.2.3.5. MAJOR SIMILARITIES AND DIFFERENCES
      • 3.4.3. INVESTMENTS IN SECURITIES
        • 3.4.3.1. DEFINITION..
        • 3.4.3.2. RECOGNITION.
        • 3.4.3.3. MEASUREMENT.
        • 3.4.3.4. EXCURSUS: DISPOSAL
        • 3.4.3.5. MAJOR SIMILARITIES AND DIFFERENCES.
      • 3.4.4. TRADING STOCK (INVENTORIES)..
        • 3.4.4.1. DEFINITION.
        • 3.4.4.2. RECOGNITION AND MEASUREMENT.
        • 3.4.4.3. SELLING AND PROCESSING..
        • 3.4.4.4. MAJOR SIMILARITIES AND DIFFERENCES.
      • 3.4.5. TRADE RECEIVABLES.
        • 3.4.5.1. DEFINITION.
        • 3.4.5.2. RECOGNITION.
        • 3.4.5.3. MEASUREMENT.
        • 3.4.5.4. MAJOR SIMILARITIES AND DIFFERENCES.
    • 3.5. LIABILITIES SIDE.
      • 3.5.1. PROVISIONS
        • 3.5.1.1. DEFINITION.
        • 3.5.1.2. RECOGNITION AND MEASUREMENT
        • 3.5.1.3. MAJOR SIMILARITIES AND DIFFERENCES.
      • 3.5.2. LIABILITIES.
        • 3.5.2.1. DEFINITION.
        • 3.5.2.2. RECOGNITION AND MEASUREMENT.
        • 3.5.2.3. MAJOR SIMILARITIES AND DIFFERENCES.
  • 4. COMPARISON OF CORPORATION TAX ASSESSMENT BASES II: ITEMS OF INCOME STATEMENT
    • 4.1. PREFACE
    • 4.2. REVENUES.
      • 4.2.1. GENERAL TREATMENT OF REVENUES
      • 4.2.2. REVENUE INCOME.
      • 4.2.3. OTHER OPERATING INCOME
      • 4.2.4. INCOME FROM FINANCIALS AND INVESTMENTS
      • 4.2.5. CHANGE IN INVENTORY/CAPITALISED SERVICES.
      • 4.2.6. EXCURSUS: CHARGEABLE GAINS.
    • 4.3. DEDUCTIONS.
      • 4.3.1. GENERAL TREATMENT OF DEDUCTIONS.
      • 4.3.2. EXPENDITURE OF PURCHASED GOODS, RAW MATERIALS AND SUPPLIES ....
      • 4.3.3. PERSONNEL EXPENDITURES
      • 4.3.4. DEPRECIATION/CAPITAL ALLOWANCES...
      • 4.3.5. OTHER OPERATING EXPENDITURES
      • 4.3.6. EXPENDITURE FROM FINANCIALS AND INVESTMENTS
      • 4.3.7. DIRECT TAX
      • 4.3.8. OTHERS: EXPLICIT NON-DEDUCTIBLE OR RESTRICTED EXPENDITURES.
      • 4.3.9. CHARGES ON INCOME (DONATIONS).
    • 4.4. EXCURSUS: TREATMENT OF LOSSES.
  • 5. COMPUTATION OF TAX LIABILITIES.
    • 5.1. CORPORATION TAX.
      • 5.1.1. PREFACE
      • 5.1.2. TAX RATES
      • 5.1.3. TRADE TAX (ONLY IN GERMANY).
    • 5.2. SPECIAL TAX RELIEFS.
      • 5.2.1. PERSONAL TAX LIABILITY
      • 5.2.2. MODIFICATION OF TAX ASSESSMENT BASE.
      • 5.2.3. SPECIAL FEATURES OF DETERMININING TRADING PROFIT.
        • 5.2.3.1. ADDITIONS
        • 5.2.3.2. REDUCTIONS TO TAXABLE BASIS.
      • 5.2.4. CALCULATION OF TRADE TAX.
      • 5.2.5. EXCURSUS: TREATMENT OF LOSSES
  • 6. SUMMARY AND CONCLUSION IN TERMS OF THESES.
    • 6.1. PREFACE
    • 6.2. BALANCE SHEET ITEMS
    • 6.3. ITEMS OF THE INCOME STATEMENT
    • 6.4. TAX RATES.
    • 6.5. FINAL WORD..
  • ANNEX
  • LIST OF LITERATURE
  • LIST OF LEGAL SOURCES.

  Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

  This study analyzes the tax accounting rules for private limited companies by shares in the United Kingdom and Germany. The primary objective is to compare and contrast the tax rules in both countries, examining the differences and similarities in accounting principles and tax regulations. Key themes explored include: * **Conceptual framework for determining taxable income:** This covers the core principles and assumptions underlying accounting practices in each country. * **Balance sheet items:** The study delves into the treatment of assets and liabilities, including intangible assets, tangible assets, investments, inventories, and provisions. * **Income statement items:** The analysis focuses on the determination of revenue and deductions, including revenue income, other operating income, financial income, expenses, and depreciation. * **Tax rates and reliefs:** The work examines the various tax rates and special tax reliefs applicable to private limited companies in the UK and Germany. * **Treatment of losses:** The study explores how losses are handled for tax purposes in both jurisdictions.

  Zusammenfassung der Kapitel (Chapter Summaries)

  • Chapter 1: Introduction This introductory chapter outlines the purpose and scope of the study. It provides a brief overview of the subject matter and explains the research methodology used.
  • Chapter 2: Fundamentals This chapter lays the groundwork for the comparative analysis by discussing general concepts and principles related to international tax comparison, tax systems, and accounting practices. It also introduces the specific instruments and methods employed in the study, including both qualitative and quantitative approaches.
  • Chapter 3: Comparison of Corporation Tax Assessment Bases I: Balance Sheet Items This chapter dives into the balance sheet items, exploring the conceptual framework, recognition criteria, and value measures for assets and liabilities. Specific areas of focus include intangible assets, tangible assets, investments, inventories, trade receivables, provisions, and liabilities.
  • Chapter 4: Comparison of Corporation Tax Assessment Bases II: Items of Income Statement Chapter 4 analyzes the income statement items, examining the general treatment of revenues and deductions. The chapter delves into specific categories such as revenue income, operating income, financial income, expenditure on goods and materials, personnel expenditures, depreciation, and other operating expenditures.
  • Chapter 5: Computation of Tax Liabilities Chapter 5 focuses on the computation of tax liabilities, including the specific corporation tax rates and special tax reliefs available in both countries. The chapter also discusses the trade tax applicable in Germany.

  Schlüsselwörter (Keywords)

  This study focuses on the tax accounting rules for private limited companies by shares, particularly in the United Kingdom and Germany. Key terms and concepts include: corporation tax, accounting principles, tax regulations, balance sheet, income statement, assets, liabilities, revenues, deductions, tax rates, tax reliefs, and loss treatment.

• Autor: Thilo Grabo (Autor)
• Año de publicación: 2008
• Páginas: 272
• No. de catálogo: V117808
• ISBN (Ebook): 9783640208456
• ISBN (Libro): 9783640208524
• Idioma: Inglés
• Etiqueta: Private, Company, Limited, Shares