Kareleo Business Centre

Posts Tagged ‘Taxes’

One of the dogmas which are reproduced in the neoliberal doctrine (based on faith in the markets) is to believe that raising taxes is not good for the economy, and even less in a recession, that is, in times of declining economic activity. Since a recession is a shortfall in demand, it is assumed that tax increases would reduce demand even more so, because people have less money to consume. But such belief ignores several facts. One is that tax increases need not reduce demand. That reduced or not depends on the type of tax. VAT tax (based on consumption), for example, can reduce demand, although even there such a reduction depends on the rate of VAT and apply to products that increase. But there are other taxes such as income tax rates, which have less impact on reducing demand, given that rich people consume as much as they receive extra money, invests more than not consumed, for his consumption level is already very high. Hence, it is known in economic literature that tax cuts for the rich have more impact on stimulating consumption savings, contrary to what happens when taxes are lowered and low average incomes. Low-income people consume all the extra money that they receive are always short of money. Hence, if you want to increase demand is better to reduce taxes on individuals and families of low and middle income than higher income people. In fact, raising the tax the rich and capital income may increase demand if the state-with the funds received as a result of higher taxes, invests in infrastructure and services that create jobs. This job creation has a very important and immediate impact on increasing demand.

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Public finances are public sector activity which consists of a set of taxes to raise resources designed to cover your expenses

The state exercises its financial activity through:
Taxes: It is a kind of tribute that is characterized by not having a direct consideration by the administration. Taxes according to their nature are classified as progressive and regressive.

Progressives: regarding the greater the gain or income the higher the percentage to be paid on the tax base. The regressive: For the greater the gain or income the lower the percentage to be paid on the tax base.

Tax items

Assets Subject: Is the entity benefiting from the proceeds of the tax, ie the state as supreme is that which is responsible for imposing the payment of taxes to citizens.

Taxpayer: The taxpayer must pay taxes on behalf of the state obtained by the provision of services to improve their quality of life.

Fact Generator: It is a fact whose realization causes the tax obligation. They are made to obtain common taxable income, the sale of goods and services, ownership of property and ownership of economic rights, the acquisition of assets or rights by inheritance or gift. Tax base: the quantification and valuation of the taxable event and determines the tax liability. Direct Tax: It is that taxing wealth or taxable activity. As the estate tax, income tax and indirect tax car tax: It is one that taxes consumption as the Value Added Tax (VAT)

6. System Availability: Availability Identified conditions requiring the company to check if the system performs them, eg scenarios High system availability.

7. Efficiency and System Security: The system meets the necessary security conditions and requires a reasonable amount of hardware resources for the dimension of business processes.
The system has some conditions of effectiveness, speed and satisfaction of use for end users.

9. Internationalization: If our company is a multinational or interact in an international environment will require information systems that support these conditions (language, date, time window, etc.)

10. Installed base of product: an analysis of the product’s installed base will help us know which scenarios work, get references of use and success stories.

To be considered are numerous, and as I said before, should be evaluated by experts with great vision executive

1. Standardization of business technologies, allowing us to use as a vehicle for integration and internal communications to support the consolidation of the corporate model.

2. Interoperability with existing systems and integration capabilities with third party systems

3. Reduced lock-in, in the sense of dependence on a technology company or a supplier, from the standpoint of cost of change

4. Version adaptability to the needs of the company, avoiding as far as possible as developments that increase the cost of change.

5. Scalability of the system, such as system’s ability to grow both in terms of incorporating new functions (vertically), such as adding new users with minimal impact (Horizontally)

Business information that provides specific information on two types of economic and financial reports and business directory.

Within the reports, provides information about the company Andalusian Added by a comprehensive and detailed set of analysis of financial information, which includes basic data aggregation, the evolution of the profit and loss account of balance, and a study of the economic and financial analysis group.

The second major area of business information is integrated into the Business Directory. The directory includes basic information (identification data and financial) of a large number of Andalusian companies. The board allows individual data collection companies serving a wide variety of search criteria.

We also have two publications:

- Business References Andalusia, a document that analyzes the demographic behavior of the Andalusian company, both territorial and sectoral perspective, as well as business analysis detected relevant behaviors, examining the differential features, from the economic and financial perspective, and the distribution that range from the spatial and sectoral perspective. Finally, we identify, in a large annex, the relevant entities under the criteria for classification.

- Economic and Financial Analysis of Enterprise Andaluza, a document that analyzes the state of the business of Andalusia, from the demographic point of view and from the analysis of financial statements and key elements of their competitiveness.

Save tax declaration in the statement of income
It ends the year and it’s time to count all the good and bad. During the second quarter to do the famous statement of income. In this case is very important to understand and maximize tax advantages. What is sought is not just saving, also minimize the tax burden for that year.

Sure there have been many bills, many income and many expenses. But why where to start? The first thing to do is review the tax returns of the previous 4 years. All of that, if amounts to be offset or income pending application. Prepare a simulation will be of great help. If withholding or income do not go back, you need to analyze all the possibilities covered by the regulations to change the situation completely.

To deduct, the ideal is to hire a pension plan or contribute as much as possible to a retirement plan. It can also serve to open a savings account housing, advancing the sale of a property or realize capital gains in shares of stock. Both the real estate as retirement are the two options that most will lighten your load.