Private Company Limited by Shares

Document from the year 2008 in the subject Business economics - Accounting and Taxes, grade: -, -, 140 entries in the bibliography, language: English, abstract: The study consists apart from the introduction of five main chapters. In the following Chapter Two of thestudy, references are outlined for conducting international tax burden comparisons. In the process, not justrelevant 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 andGerman tax systems and of key determinants that shape the tax law in each case. Finally valid corporationtax regulations are characterised for the United Kingdom and Germany respectively. This mainly entails adescription 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 sheetitems in the United Kingdom and in Germany respectively. In the first part of the chapter in reference to theauthoritative principle under which tax regulations refer to commercial accounting regulations, initially thecommercial 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 valuemeasures are discussed for balance sheet items. In the last and most extended section, finally a qualitativeexamination is conducted of balance sheet items from tax point of view. The balance sheet items concernedhave been split for examination purposes generally according to the country between the United Kingdomand Germany as well according to respective item classes of definition, recognition, measurement anddisposal. In conclusion to each partial examination, key similarities and differences are summarised andassessed applying qualitative perspective.In Chapter Four, the comparative assessment is extended to also comprise profit and loss items. Theapproach applied refers to the cost method structure, comprising apart from qualitative examination of taxtreatment of selected profit and loss items also an analysis of general treatment of revenues and deductionsrespectively. Further the treatment of tax losses is discussed in the United Kingdom and in Germanyrespectively.Applicable corporation tax rates in the United Kingdom and in Germany are examined from both thequalitative and quantitative perspectives in Chapter Five. This also entails an exemplification of the Germantrade tax (local business tax). The study concludes in Chapter Six with a summary of the conclusions reachedin form of theses.