what are the tax issues?

Idell Mulliniks: A tax is a financial charge or other levy imposed on an individual or a legal entity by a state or a functional equivalent of a state. Taxes are also imposed by many subnational entities. Taxes consist of direct tax or indirect tax, and may be paid in money or as its labor equivalent (often but not always unpaid). A tax may be defined as a "pecuniary burden laid upon individuals or property to support the government a payment exacted by legislative authority."Corporate tax refers to a direct tax levied by various jurisdictions on the profits made by companies or associations and often includes capital gains of a company. Earnings are generally considered gross revenue less expenses. Generally, industrialized countries also use a regressive rate of tax upon corporate income....Show more

Corey Rohleder: I don't know what country you are in, but this is the UK tax system.Taxes go to the country to pay for roads, hospitals, schools, everything public, a! nd the parliament. Everybody in the UK who earns over £5,000 must pay tax on their wages, which goes automatically. Then everytime you buy anything, you pay an extra 17.5% VAT (value added tax) but you don't see this either as it is usually included in the price. If you earn more than about £60,000 then your wages are taxed, but you don't have to pay VAT, so everytime you go shopping you keep your reciepts and claim back the VAT.A company must work out the tax for all their employees, as well as working out the VAt for each of the items they may be selling. They must also have an accountant (unless they are very good at finances) to make sure that they are paying the right amount of tax every year. If they aren't they can get in a lot of trouble!...Show more