What is the importance of tax payment in the business environment Explain
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Business Environment
Case Studies
CASE STUDY (20 Marks)
Measuring the Results of Donor
Supported Tax Reform – The case of donorsupported tax reform in Nigeria (GEMS3)
Taxation is an important exchange between government and private enterprise. It
provides the means through which governments are able to fund their activities,
while influencing the behavior of the private sector through the use of
incentives and penalties. For many emerging enterprises, the fear of taxation
keeps them informal and hidden from official observation. Tax is central to the
business environment as well as to the political accountability mechanisms of
the state. In the past, tax reform typically focused on the shortrun objectives
concerned with adjusting tax rates and increasing revenue. However, from a
business environment perspective, tax reform focuses on the longer term
concerns affecting economic growth and investment. Donor and development
agencies support tax reform for a variety of reasons. These include: Increasing
the sources of taxation; Broadening the tax base to include micro and small
enterprises; reducing the tax burden for individual taxpayers; and
Strengthening political accountability processes. Thus, donor and development
agencies work with governments to streamline their tax systems, lower the barriers
for firms to participate, encourage foreign and domestic formal investment,
widen the tax base, and set the conditions necessary to lower the per business
burden. Writing for the World Bank Group, Bruhn (2011) describes the challenges
of measuring the effects of tax reforms on economic outcomes. Overcoming these
challenges “ involves extensive data requirements, non uniform reporting
practices, identification problems, and a wide range of imperfect measures and
methodologies”. She cites several studies that link tax reforms that focus on
reducing corporate tax rates to increases in investment and formal firm
creation. While less is known “about the effects of reducing compliance costs”,
a few studies have begun to indicate evidence of a link between tax
simplification and an increase if firm creation and sales. Donor and
development agencies that support BER, focus on tax reforms to contribute to
increased private investments and rates of formal firm establishment, along
with increases in business turnover and employment levels. These enterprise
level changes enhance the capacity of the private sector to contribute to
economic growth and poverty reduction. 2.1. The case of donor supported tax
reform in Nigeria (GEMS3) In Nigeria, the World Bank and the United Kingdom’s
Department for International Development (UK Aid) fund the Growth Employment in
States (GEMS) program. The Nigerian Federal Ministry for Trade and Investment
is responsible for implementing the program, which began in 2011. This program aims
to create jobs and increase nonoil growth in specific value chains. UK Aid has
provided a grant of £90 million and the World Bank a concessionary loan of
US$160 million. GEMS indicates it will achieve an overall internal rate of
return of 48 percent. A key target is the creation of at least 100,000 jobs
directly in the selected sectors. The program targets at least six economic
sectors and aims to support small and medium sized enterprises (SMEs). While GEMS has four broad
program themes, the third of these, GEMS3, is entitled “Support Improved
Business Environment”. This is a five year program, which is due to conclude in
2015. GEMS3 seeks to improve the environment for doing business in Nigeria,
especially in land, taxation and investment, so that these markets will work
better for the poor. The GEMS3 12 business model states that these improvements
in doing business will ultimately lead to lasting improvements in economic
opportunities for the poor, especially women. GEMS3 has an overarching
framework (i.e., logical framework) that cuts across
Answer the following question.
Q1. What is the importance of tax
payment in the business environment? Explain.
Q2. How the tax base is widened with
the coordination of donor and development agencies.
CASE STUDY (20 Marks)
Strategy has been considered for quite
a long time by business pioneers and by business scholars. However, there is no
complete answer about what methodology truly is. One purpose behind this is
individuals consider system in various ways. The methodology is a setup and
development of accessible assets for an association towards meeting the
necessities, prerequisites and desires of business sectors and partners. It is
additionally a long run heading and extent of an association that decides the dreams
and
Objectives. Procedure is about choices
taken by top administration to achieve an organization’s security and
maintainability. Additionally, it alludes to essential directional choices,
that is, to purposes and missions. Technique comprises of the critical
activities important to understand these bearings, and it is additionally the
end that the organization needs to reach in the wake of selecting the correct
bearings. In actuality, not all business choices are having a place the key
circle; The key choices are those which accomplishing something an unexpected
way; From contenders and that distinction make a maintainable point of
preference. Indeed, the exercises that are utilized to build profitability are
not key since they can be effectively imitated by others. Strategy is a system
that gives direction to moves to be made and, in the meantime, is formed by the
moves made, and it has nine conceivable main impetuses: Products offered,
Market needs, Innovation, Production ability, Method of offer, Method of
conveyance, Natural assets, Size/development and Return/benefit. The plan of
action is another idea in administration writing and practice. It depicts the
rationale by which an association makes, keeps up and passes on regard for its
accomplices. This term is getting the chance to be logically used among
scholastics and experts. Furthermore, it is an auxiliary format that delineates
the association of a focal organization& exchanges with the majority of its
outer constituents in element and item advertises. It has been conveyed to the
bleeding edge of vital administration considering, and has transformed into a
particularly key new probability figure through late quick propels data and
correspondence advances particularly, Internet and broadband headways that have
supported new sorts of advancement interceded between money related
authorities. The investigation of plan of action is an imperative point for key
administration research since it impacts firms; Possible results for quality
creation and worth catch A recently engaged business display together with in
front of timetable segment into a business a rea has a valuable result on
execution. The complexity between plans of action and technique is that plans
of action are a coordination system, planning the parts of a business, while
the methodology sorts out the aggressive battle considered that this idea can
outfit directors and specialists with critical ways to deal with develop their
appreciation of business wonders by building nonexclusive classifications and
the headway of immaculate sorts. In this way, it helps chiefs to catch,
imagine, fathom, pass on and offer the business rationale. Each composed
exertion in arranging and executing a specific plan of action joins the
progressive, too as the departmental level, especially to those authoritative
units that are most separating to a legitimate determination and mix of
business parts whose relationship and reliance structures the degree whats
more, profundity of the engaged ability of any venture. In this association,
business displaying is a strategy as contradicted to a state, fantastically as
a result of the required changes, transformational or esteem based, that shape
the approach of managing it.
Answer the following question.
Q1. Explain the difference between
strategy and methodology in detail.
Q2. Discuss the terms “plan of action”
and “techniques”.
CASE STUDY (20 Marks)
The Working Time Directive adopted by
the European Union's (EU) Social Affairs Council in 1993 governs working time
regulations in the EU member states. It set a maximum limit of 48 hours per
working week. Following the adoption, Britain negotiated for an 'optout'
provision that allowed individual employees to waive their rights to the 48
hour limit. But recently, many have started questioning the relevance and
operational veracity of the optout.
Answer the following question.
Q1. Explain the views of the trade
unions and the Confederation of British Industry on the optout.
CASE STUDY (20 Marks)
America has increased outsourcing
exponentially over the last six months. The corporate top brass and experts
however, have staunchly defended their decision to outsource, stating that the
job shifting to developing nations with well qualified human resources is
necessary for the American companies to retain their competitiveness. While the
pain is real for the people who have been rendered jobless, some politicians
have chosen the issue to play on the minds of the populace, accusing
outsourcing as a potential source for recession and jobless growth.
Answer the following question.
Q1. Explain the relationship between
comparative advantage and outsourcing
Q2. Analyze the advantages and
disadvantages of outsourcing in the context of US
Q3. Debate whether outsourcing is the
real cause of unemployment in US and whether adopting a protectionist approach
will be beneficial for the economy or not.
Q4. Give an overview of the case.
Assignment Solutions, Case study Answer sheets
Project Report and Thesis contact
ARAVIND – 09901366442 – 09902787224
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