Presentation:
Taxation
A tax event
English for accountancy
Mister Gershon Feldman , CPAPreformed by:
Amir H.
Liran K.
Elyashiv B.
Semester A – 5770
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Projects objectives
– Demonstrating aspects of the essential
dimension of a tax event by showing
examples from the Israeli Tax ordinance and
from familiar law cases in Israel and the
world.
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Tax definition
Briefly:
A fee charged by a government on a
product, income, or activity.
*uk.etrade.com
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What is the purpose of taxation?
The main purpose. raise money to -Revenuespend on roads, schools and hospitals, and on more
indirect government functions like market regulation
or legal systems.
• Redistribution- transferring wealth from
the richer sections of society to poorer sections.
• Repricing- Taxes are levied to deal with
externalities.
For example, on tobacco → to discourage smoking
• Representation- rulers tax citizens, and
citizens demand accountability from their rulers
→ "no taxation without representation"
:The Four "R"s
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What is a tax event?
• The essential
dimension
• The chronological
dimension
• The international
dimension
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The essential dimension
• Conversion of stocks to fixed asset?
The Israeli Tax ordinance:
• Claus 85: We shell se this as a tax event.
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Law cases
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The story
Mrs Sharkey had a horse's farm in order to
raise and then sell them. Mrs Sharkey moved
some horses to her privet farm in order to
make a privet use- for horse racing.
Sharkey v Wernher
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The basic question in the court's discussion:
Court’s new
termination
Court's explainCourt’s
answer
“A notional
sell”
".. Someone who moves some of
his business' stocks to his privet
"garage" is actually selling the
business' stocks to himself and
this is just like he was selling the
stocks to a foreign”
YES
" can someone trade with him self ? "
This sentence was a revolutionary sentence
Sharkey v Wernher
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The story
A building apartments company.
They had A few apartments that weren’t
sold. They have turned them to rental
apartments until the company will
succeed selling those apartments.
Gan Chana Leaa Roz
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Court’s new
termination
Court's explainWho won
the case
“Temporary
change of
use”
The change of use is
temporary.
The event does not
enter Clause 85.
The
company
Gan Chana Leaa Roz
The income tax assessor: There is a change of the apartment’s
(company's stocks) use → A tax event according to Clause 85.
: It is not a change of use, the apartments The company
are still for sell.
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thank you for attending our
presentation!