Business Section: International Taxation Issues (Essay Sample)
Access Disney's latest Annual Report on Form 10K and attach a copy of that latest Annual Report to your initial response. Using CTRL + F on your Personal Computer or Command + F on a Mac, do a search of that latest Annual Report and locate any information contained in that latest Annual Report related to the following:
1. Transfer Pricing and/or Tax Havens
2. From the Business Section of the Annual Report on Form 10K, find any information or disclosures made by Management related to income taxes
3. From the Summary of Accounting Policies, any income tax policies related to the accounting for income taxes
4. From the footnotes to the financial statements, the income tax footnote
In Management’s Discussion and Analysis section of the Annual Report on Form 10K, find any information or disclosures related to income taxes made by Management
5. Ensure you select a company that none of your peers has already selected and posted in the Discussion Forum.
Address in your initial response what you learned from the above search about your chosen company that relates to what we are learning in this Module about International Taxation-Related Issues.
In preparing your response, number your answers to Items 1-5 inclusive above so that you are sure to answer each point in your initial response. Copy and paste each of the Items 1-5 inclusive above in bold type in your response.
Finally, for Item 6, would you say that your chosen company has been tax conservative or tax aggressive or something in between regarding the management of income tax expense? For example, the basic corporate income tax rate as of December 2017 is 35% for U.S. corporations and has been for several years. What is the effective income tax rate of your chosen company in its latest Annual Report? (Hint: Take income tax expense on the income statement divided by income before income taxes to obtain the overall effective income tax rate.) What has been the trend in that effective income tax rate over the last three fiscal years for your chosen company compared to the 35% basic corporate tax rate? Does that change your answer to the tax “conservative or aggressive” question for your chosen company?
Be sure to support your statements with logic, arguments, and examples, citing any academic sources referenced and following APA format. Post your initial response early in the week, and check back often to continue the discussion. Be sure to respond to your peers’ and your instructor’s posts (or questions on your initial response), as well. Please review the Discussion Grading Rubric so you understand how your instructor will grade your discussion participation.
International Taxation Issues
In its latest fiscal year, the Walt Disney Company successfully sourced over 93 percent of its global income in the United States as the foreign affiliates paid for the value of Donald and Mickey. Just like Starbucks, the Walt Disney Company is sourcing its IP income in mainly the United States. Also, its 28 percent tax rate is due because nearly 43 percent of Caterpillar’s income is sourced in America, whereas nearly 30 percent of the sales are outside the country. America has constantly been fighting against the foreign tax havens to crack down on their own tax cheats, and that will definitely benefit companies like Walt Disney in coming years.
From the Business Section of the Annual Report on Form 10K, it is evident that the company management has divided operations into five sections to save income tax: Media Netw
YOU MAY ALSO LIKE
- Ethics- Use of animals in the process of testing non-medical products.Description: Poisoning, shocking, burning and murdering animals has become a common practice for various companies producing non-medical products such as cosmetics, cleaning, storage, pharmacy and office supplies among others, according to People for the Ethical Treatment of Animals (PETA)....6 pages/≈1650 words | 10 Sources | APA | Accounting, Finance, SPSS | Essay |
- Financial Markets and Institutions. The Reserve Bank of Australia Monetary PolicyDescription: Over about the past three decades, Australia’s monetary policy structure has changed considerably, with the most substantial transformation being the embracing of an inflation target at the beginning of the 1990’s according to Fontaine (2014)....10 pages/≈2750 words | 4 Sources | APA | Accounting, Finance, SPSS | Essay |
- Full Disclosure In Financial Reporting - Verizon CommunicationsDescription: Financial statements are often not easy to understand or comprehensive to the reader and thus necessitating the disclosure of accounting policies used in developing the financial report document....5 pages/≈1375 words | 3 Sources | APA | Accounting, Finance, SPSS | Essay |