The Creation of a Common Market for Financial Services in the European Union Essay Example for Free

The Creation of a Common Market for Financial Services in the European Union Essay Of all the global achievements in the last 50 years, economic integration in Europe may be considered as the most notable of all. From a continent separated by war and differences in culture, Europe has proceeded to become an economic and political leader today. The formation of the European Union (EU), the accession of the 15 European countries to the Community, and the introduction of a single currency which were all deemed too difficult have all become realities, proving skeptics that there is hope for a united Europe. From the beginning, the idea behind united Europe centered on economic prosperity. While conflicts in European countries were political in nature, it was almost always related to resource allocation. The signing of the Treaty of Rome in 1957 signaled the start of a gradualist approach to building the European Union as we know today. By preventing the establishment of monopolies, enabling the creation of common policies and granting commercial privileges to the colonies of the Member States, the Treaty of Rome put into motion the progressive economic integration which in turn, led to the longer term objective of political union in the continent (Ocana 2003). The Treaty of Rome paved the way for the creation of a common market wherein persons, services and capitals can freely move across borders. Yet, despite the freedom of establishment set out in Article 43, the freedom to provide cross border services as provided by Article 49 and the free movement of capital espoused by Article 59 (European Council 1957), the focus in these early years were mainly on the abolition of tariffs and excise taxes. Following the recession in the early 1980s (also termed as eurosclerosis), the Heads of States have decided to complete the plans for an internal market. As early as 1985 the potential of a common market for financial services was already recognized. In the 1985 White Paper published by the Commission of the European Communities, it said: â€Å"In the Commission’s view, it is no exaggeration to see the establishment of a common market in services as one of the main preconditions for a return to economic prosperity†¦the liberalization of financial services will represent a major step towards Community financial integration and the widening of the Internal Market† (Commission of the European Communities 1985). This is a fact that the modern day European Commission (EC) still believes in. With more efficient allocation of capital, the Commission hopes to ensure long-term economic performance. More than 20 years after the publication of the 1985 White Paper, Europe is in economic turmoil. Critics have started pinpointing the flaws of creating the EU, and the Commission must again enumerate the advantages of an integrated financial market, as well as report on the developments aimed at this direction. What are the different steps made toward financial integration? What are the specific features of the liberalization program? What are the results achieved from these reforms? These are just some of the issues which will be discussed in this paper. What does a Single Market Look Like? While so many legislators talk about the Single Market for financial services, very few actually understand what it is, and what can be expected from it. In sum, however, a fully functioning unified market allows buyers and sellers of assets to deal with one another, regardless of the location of their systems and infrastructure. It allows market participants, both the intermediaries (brokers) and the end users, to raise funds and profit in all Member States without fulfilling additional licensing requirements. Financial institutions which legally operate in one Member State can open new cross border operations without needing to pay additional fees or acquiring new certification from the host country. These same institutions are also given access to all essential systems and infrastructures they will need to continue their operation (The Working Group in City of London 2000). All financial institutions duly licensed in their home countries can work as intermediaries in the financial market offering the same functions, products and services across all Member States. In the same manner, infrastructure providers are free to offer their services in any country which belongs to the EU (The Working Group in City of London 2000). Needless to say, a Single Market is a venue for competition and innovation. It enables Member States to take advantage of the opportunities offered by the 27 countries and 480 million people in the Community without worrying about the risks. It allows Member States to take advantage of the benefits of free trade, while at the same time erecting safeguards that can protect their own economy from increasing volatility which is a major characteristic of globalization. The Benefits of a Single Market According to the EC, the completion of a â€Å"single market [for] financial services is†¦a crucial part of the European Commission’s overriding objective of achieving more and better jobs in a more dynamic, innovative, attractive Europe† (European Commission 2010). Keep in mind that the financial market deals mainly with savings (whether individual or institutional) which can then be used as capital. With a Single Market for financial services, Member States can hope to achieve the following advantages (The Working Group in City of London 2000: pp. 7-8): †¢ Improved allocation of capital, due to the lower transaction costs and higher market liquidity. †¢ More efficient movement in the security market which allows savings to become investments. †¢ More innovative financial systems which lead to a diversified (hence, a more stable) portfolio of investments. †¢ More efficient financial transactions as brought about by the competition among financial intermediaries in the EU. †¢ Increased opportunity to take advantage of the economies of scale. In the 1985 White Paper, it was stated that in order for the internal market to become a possibility, firms and private individuals must have access to more efficient financial services. With open competition among financial institutions, they will be forced to reevaluate their processes so that restrictions to capital movements are kept to a minimum (Commission of the European Communities 2005). The White Paper also believed that more efficient financial transactions will reinforce the European Monetary System and ensure the stability of the exchange rate (Commission of the European Communities 2005). Even in those early days, it was already known that the free movement of capital coupled with greater financial freedom will enable Member States to enact sound economic policies, hence, promote economic stability. In recent years, the need for a Single Market for financial services has become even more important. With the improvement in technology came the increased access to knowledge and information, which in turn affected strategic decisions and competition. In order to survive a globalized economy, companies have to find more efficient processes so that they can take advantage of the economies of scale. And yet, even the creation of efficient processes will require capital. With lesser restrictions among EU countries, companies can now raise funds from any side of the Community. Aside from this, the high interest rates have led to the increase in the demand for high-yield securities and assets, but with the deceleration in productivity came the need to manage portfolios more actively. Investors have become more wary and will not release capital without the assurance of profit. With a Single Market for financial services, the EU has provided stability in portfolios because of the increase in the number of investment tools available in the Community. A Single Market for financial services allows capital to flow smoothly because it provides investors an attractive market where there are more opportunities to pool risk, as well as improved chances to profit. With the increase in the flow of investments in all financial institutions in the EU, businesses can have additional sources of capital which they can then use to expand their operations, and provide employment. The â€Å"achievement of the Single European financial market is the most crucial [factor] in creating the most competitive and dynamic knowledge-based economy in the world, capable of sustainable growth with more and better jobs and greater social cohesion† (The Working Group in City of London 2000: pp. 8). For citizens, a single market for financial services meant that the capability to open bank accounts in any country in the EU, buy and sell shares in foreign companies, purchase real estate – basically to find an investment with the best return. On the other hand, for companies, it means the ability to invest (and own) other European companies and play a big role in their management. The financial market is a global industry where global players seek international markets which will give the best advantages in terms of cost, profit, flexibility and liquidity. An integrated European financial market makes available a number of opportunities – from retail investors, to wholesale financial markets for global traders. Steps toward Financial Integration in the EU The move towards financial integration in the EU can be traced as far back as the 1970s with the release of the major directives in banking, insurance and investments. The first banking directive focused on the establishment of credit institutions within the Community. According to this directive, all banks operating in the Community which have plans of establishing operation on another country must obtain authorization from the supervisory body of the host country. At the time, European Community (EC) banks were subject to restriction, especially in the range of activities they can perform. Many of these restrictions are listed on the General Agreement on Trade in Services (GATS). Keep in mind, however, that this directive has been issued in the 1970s while the similar legal framework from the World Trade Organization (WTO) was released only in the 1990s. By 1989, a new banking directive was released. The second directive introduced a single banking license wherein the bank’s home country is responsible for checking the financial institutions’ overall solvency, and the fulfillment of minimum capital requirements. Once the bank was licensed in its home country, it can then expand its operations to other Member States without completing separate authorization requirements (Pasadilla 2008: pp. 3). Aside from these two directives, other directives affecting banking policies were released. Some of them were involved the harmonizing of accounting rules, the removal of exchange controls, the setting of minimum capital requirements, and the definition of banking activities. Integration in insurance and investment mirrors the same steps made in banking. Major directives were also released, each one amending the previous. The first directive in this sector paralleled the first banking directive wherein authorization procedures were outlined. In a subsequent directive, the home country control was enhanced and certain supervisory provisions were specified.

Gun Control: Opposing the Removal of Guns from American Citizens Essay

Because of many incidents involving handguns, and any other type of gun, the government has been trying to push a gun ban law. As a result of this rumor and possible law, there have been numerous outbursts of support and resistance. Some people believe that banning firearms would be a benefit to our nation’s safety and its population’s safety, while others oppose this proposal and say that guns are not the ones that need to be controlled, people should be the ones that are controlled. During this decision, people from different organizations have expressed their own views and thoughts. Gun control has both positive and negative effects on U.S. citizens. Some organizations report that the removal of firearms will reduce crime rates, deaths, and injuries from guns(Handgun Control Debate). An organization known as â€Å"The Brady Center† says that the Second Amendment does not state that people can carry and own handguns and be protected by its laws(Handgun Control Debate). The Brady Center also argues that if a larger amount of guns are available to a child’s reach, there will be more injuries and fatalities among minorities, so they are also trying to present laws and proposals that will protect children from handgun injuries(Handgun Control Debate). Claire Safran states that in Seattle, Washington, guns are plentiful and that there could be more deaths and injuries in that city than others because of the amount of illegal handguns in the city that owned by gangs and criminal organizations(Roleff, 17). Carl T. Bogus, a visiting professor at Rutgers University School of Law Enforcement in Camden, New Jersey says that private ownership of guns is hazardous to American citizen’s safety, and suggests that all handguns should be o... ...As we know it, this law on either protecting gun rights or taking them and the guns away will surely change the United States future. Works Cited Cold Comfort: A Interview With John R. Lott. Lynch, Michael W., and Jacob Sullum. Reason. 3 Dec. 2009. . Elder, Larry. â€Å"More Gun Control, Please!† Capitalism Magazine. 24 Oct. 2002. 1 Dec. 2009. â€Å"Gun Control.† Encyclopedia4U. 2005. 1 Dec. 2009. Handgun Control Debate. Awesome Library. 1 Dec. 2009. Roleff, Tamara L., ed. Gun Control: Opposing Viewpoints. San Diego: Greenhaven Press, 1997.

Early 1920s and Hitler’s Rise to Power

The Rise of Hitler 1. Why did so many German people join the Nazi Party? In the early 1920s, Germany was especially hard-hit during the Great Depression after the first World War, mainly because of the Treaty of Versailles, which made Germany go into an extreme hyperinflation. People could not buy anything with a reasonable price. In 1922, a loaf of bread costed 163 marks. In September 1923, it would have costed 1,500,000 marks and in November of that same year which was the peak of the hyperinflation, the loaf of bread would be worth 200,000,000 marks.Prices were going up faster than people could spend their money. Naturally, workers were unhappy with the social and economic conditions in Germany. Then came Adolf Hitler, who formed a party known as the Nazis which promised many things that the workers and the people of Germany wanted and implemented his ideas through his propaganda. Hitler told people that he would make sure everybody got a job and that he would help the peasants. T hese ideas were implemented into his propaganda and proved to be very effective. . Why did the Munich Putsch 1923 fail? The Munich Putsch of 1923, also known as the Beer Hall Putsch was Adolf Hitler’s attempt to overthrow the Weimar government of Ebert and establish a nationalistic one instead in its place. The Munich Putsch failed because of several factors. First, Hitler had only about 35,000 supporters at that time so there was a shortage of rebels. Second, the Kahr had called in army and police reinforcements and 16 Nazis were killed.Hitler was threatening to shoot anyone that left the Beer Hall and didn’t rebel so not everyone was happy about participating in it, so when the police and army reinforcements came, most of them fled since they didn’t even want to be there in first place. Overall, the reason for the Munich Putsch failing is because the Nazis, despite not having enough supporters at the time, tried to force itself into power against superior mili tary and political forces. 3. Why did Hitler receive such a light sentence at his trial for treason?What were the consequences of his trial and time spent in prison? In 1923, after being arrested for participating in the Munich Putsch, Hitler served a fairly light sentence of 5 years and a 200 mark fine after being accused of high treason. Hitler actually only served 9 months of those 5 years in prison. However, the usual consequence of high treason was death. The question is, why didn’t Hitler get executed? In the courtroom at the time of the trial, Hitler used that time to make another one of his speeches, causing more people to join his cause.This also made the judge like him, so the judge gave him a particularly light sentence. However, even if the judge didn’t like him, he would have gotten a lighter sentence anyways. This is because there were many more German people supporting Hitler now and if the judge sentenced Hitler to death, then that might have caused an uprising or a protest. Therefore, the judge decided to send him to pay a 200 mark fine and serve a 5 year prison sentence, although he would be eligible for parole after 9 months.

What Teachers Do Beyond the Classroom Is Critical

Many people believe that teachers have an easy job in part because they have the summers off and multiple days off for several holidays.   The truth is that teachers spend almost as much time working when students are gone as they do when students are in class.   Teaching is more than 8-3 job. Good teachers stay at school late into the evening, continue to work once they get home, and spend hours on the weekend preparing for the upcoming week.   Teachers often do amazing things beyond the classroom when no one is looking. Teaching is not a static job where you leave everything at the door and pick it back up the next morning.   Instead, teaching follows you wherever you go. It is a continuous mindset and state of mind that is rarely turned off. Teachers are always thinking about their students. Helping them learn and grow consumes us. It causes us to lose sleep sometimes, stresses us at others, yet provides us joy constantly.   What teachers truly do is not completely understood by those outside of the profession. Here we examine twenty critical things that teachers do once their students are gone that makes a significant impact.   This list only offers some insight into what teachers do once their students leave and is not comprehensive. Actively Participate on a Committee Most teachers set on various decision-making committees throughout the school year. For example, there are committees in which teachers help formulate a budget, adopt new textbooks, craft new policies, and hire new teachers or principals.   Sitting on these committees can require a lot of extra time and effort, but give the teachers a voice in what is happening within their school. Attend Professional Development or Faculty Meeting Professional development is an essential component of teacher growth and improvement. It provides teachers with new skills they can take back to their classroom.   Faculty meetings are another requirement held several times throughout the year to allow collaboration, present new information, or simply to keep teachers up-to-date. Breaking Down Curriculum and Standards Curriculum and standards come and go. They are cycled through every few years.   This ever revolving door requires teachers to break down the new curriculum and standards they are required to teach constantly. This is a tedious, yet necessary process in which many teachers dedicate hours to conducting. Clean Up and Organize Our Classrooms A teacher’s classroom is their second home, and most teachers want to make it comfortable for themselves and their students. They spend countless hours cleaning, organizing, and decorating their classrooms. Collaborate with Other Educators Building relationships with other educators are essential. Teachers spend a lot of time exchanging ideas and interacting with one another.   They understand what each other are going through and bring a different perspective that can help solve even the most difficult of situations. Contact Parents Teachers call email and message parents of their students continuously.   They keep them up-to-date on their progress, discuss concerns, and sometimes they just call to build rapport.   Additionally, they meet face-to-face with parents at scheduled conferences or whenever a need arises. Extrapolate, Examine, and Utilize Data to Drive Instruction Data drives modern education. Teachers recognize the value of data. When they assess their students, they study the data, looking for patterns, along with individual strengths and weaknesses. They tailor lessons to meet the needs of their students based on this data. Grade Papers/Record Grades Grading papers is time-consuming and tedious. Though it is necessary, it is one of the most boring parts of the job.   Once everything has been graded, then they must be recorded in their gradebook.   Thankfully technology has advanced where this part is much easier than it once was. Lesson Planning Lesson planning is an essential part of a teacher’s job.   Designing a week’s worth of great lessons can be challenging.   Teachers must examine their state and district standards, study their curriculum, plan for differentiation, and maximize the time they have with their students. Look for New Ideas on Social Media or Teacher Websites The Internet has become a focal point for teachers. It is a valuable resource and tool full with new and exciting ideas. Social media sites such as Facebook, Pinterest, Twitter also allows a different platform for teacher collaboration. Maintain a Mind of Improvement Teachers must have a growth mindset for themselves and their students. They must always be searching for the next great thing. Teachers must not become complacent. Instead, they must maintain a mind of improvement constantly studying and looking for ways to improve. Make Copies Teachers can spend what seems like an eternity at the copy machine.   Copy machines are a necessary evil that becomes even more frustrating when there is a paper jam. Teachers print all sorts of things such as learning activities, parent information letters, or monthly newsletters. Organize and Oversee School Fundraisers Many teachers conduct fundraisers to fund things such as equipment for their classrooms, a new playground, field trips, or new technology.   It can be a taxing endeavor to count and receipt all of the money, tally and submit the order, and then distribute all of the merchandise when it comes in. Plan for Differentiation Every student is different. They come with their own unique personalities and needs. Teachers must continuously think about their students, and how they can help each one. It takes a lot of time and effort to accurately tailor their lessons to accommodate each student’s strengths and weaknesses. Review Instructional Strategies Instructional strategies are a critical component of effective teaching.   New instructional strategies are being developed all the time.   Teachers must familiarize themselves with a wide variety of strategies to meet each of their student’s needs. Strategies that work well for one student or class may not necessarily work for another. Shop for Classroom Activities and/or Student Needs Many teachers invest hundreds to thousands of dollars out of their own pocket for materials and supplies for their classroom every year.   They also purchase materials such as clothing, shoes, and food for needy students.   Naturally, it takes time to go to the store and grab these items. Study New Educational Trends and Research Education is trendy. What is popular today, likely will not be popular tomorrow. Likewise, there is always new education research that can be applied to any classroom. Teachers are always studying, reading, and researching because they do not want to miss an opportunity to improve themselves or their students. Support Extra-Curricular Activities Many teachers double as coaches or sponsors of extra-curricular activities. Even if they do not draw an extra-duty assignment, it is likely that you will see several teachers in the audience at events. They are there to support and cheer on their students. Volunteer for Extra-Duty Assignments There are always opportunities for teachers to assist in other areas around the school. Many teachers volunteer their time to tutor struggling students. They keep gate or concession at athletic events. They pick up trash on the playground. They are willing to help out in any area of need. Work Another Job As you can see from the list above, a teacher’s life is already very busy, yet many work a second job. This is often out of necessity. Many teachers simply do not make enough money to support their family.   Working a second job cannot help but impact a teacher’s overall effectiveness.

The Plague Of The Bubonic Plague - 1562 Words

A 1200 census stated that the Chinese population was close to120 million inhabitants. By 1393, their population dropped to around 62 million. Before long, the disease causing this drop in populace migrated into Europe. A diseased person would get a high fever, cold sweats, experience weakness, have migraines, and buboes (swollen, tender and painful lymph nodes) would appear. Without warning, buboes would spread to every lymph node in the body and blood would start to puddle under the skin. The skin then turned black and died. In its final stages, the victim had respiratory failure, went into shock, and died a slow, painful death. As described in this quote by Matteo Villani, â€Å"It was a plague that touched people of every condition,†¦show more content†¦The website www.allempires.com states, â€Å"Perhaps no empire in history has risen so spectacularly as that of the Mongols. In less than 80 years, a band of warriors originally comprised of several men grew to a n empire that encompassed all from the Pacific Ocean to the Danube River.† (pg.1) Founded in 1206, by the infamous Genghis Khan, the Mongol Empire quickly gained power. By 1260, the Mongols had stretched their illustrious empire from the East coast of china to present-day Russia. Because of this, the Mongols grew to great power and were feared all over Eurasia, mostly for their ferocious battle tactics. They were known to be some of the most barbaric groups of warriors to ever walk on the face of the Earth. Town by town, civilians were expected to surrender to the Mongols, or they would all be savagely murdered. One interesting way they did this was through some of the first examples of biological warfare. As mentioned above, the Bubonic Plague ravaged Asia before it ever became known in Europe. Because the Mongols ruled the majority of Asia, they had many citizens die from the Bubonic Plague. Sadly, the Mongols found a very repugnant use of all the dead bodies. They would catapult diseased cadavers into cities, which extirpated entire towns within a few months. The Mongols achieved their goal of domination without having to expend extra energy through physical combat. This saved

Compare And Contrast Jason And Medea - 1148 Words

Abrahamsen, Laura. â€Å"Roman Marriage Law and the Conflict of Senecas Medea.† Quaderni Urbinati di Cultura Classica, vol. 62, no. 2, 1999, pp. 107–121. JSTOR, www.jstor.org/stable/20546591. Accessed 12 Sept. 2017. This article explores the laws of marriage in Roman culture. While both Euripides and Seneca hold two of the most acclaimed versions, Laura Abrahamsen describes how Seneca’s version may be best suited in representing a Roman retelling of the legend and how the traditional social constructs may have added to a negative perception of Medea. Ackah, Kofi. â€Å"Euripides’ Medea and Jason: A Study in the Social Power of Love.† Phronimon, vol. 18, 2017, pp. 31–43., upjournals.co.za/index.php/Phronimon/index. Accessed 12 Sept. 2017. Kofi†¦show more content†¦The article acknowledges the extent of time that Euripides devotes to the complexities of the feminine mind, while also defending the argument that Medea receives little sympathy in the end in comparison to Jason. Lloyd, Charles. â€Å"The Polis in Medea: Urban Attitudes and Euripides Characterization in Medea 214-224.† Classical World, vol. 99, no. 2, 2006, pp. 115–130. JSTOR, www.jstor.org/stable/4353029. Accessed 13 Sept. 2017. Charles Lloyd investigates the characterization of Medea, such as her language and sequence of events, to prove how Euripides paints her as sophisticated due to her foreignness. However, he also proves that Medea is suppressed by listing ways in which she tried to change her perception by imitating male Greek culture. This article will provide a counterargument for the patriarchy I intend to illustrate within the text The character Medea continues to stun and unsettle audiences as she depicts the fury that results from infidelity within marriages. This complex play of a Greek husband, Jason, and his wife Medea, who responds to her husband’s disloyalty of joining with another wife by killing their two sons, and his new royal bride, depicts a rather wicked and irrational side of the female protagonist. Coupled with the use of her witch-like powers to complete the murders, Medea is prevented fromShow MoreRelatedComparing the Characters of Lysitrata, Penelope, and Medea Essay724 Words   |  3 PagesThe purpose of the paper is to compare and contrast the characters of Penelope in the epic, The Odyssey, Lysistrata in the comedy, Lysistrata, and Medea in the tragedy, Medea. The writer will first give a brief synopsis of each character, followed by a comparison and climaxing with the contrast. Penelope, a loyal, faithful and patient wife is faced with suitors pressuring her daily to remarry. She uses her wit and cleverness to hold them off. She assures the suitors that she will remarry as soonRead MoreCompare/Contrast the Treatment of Femininity in Pygmalion and Medea1437 Words   |  6 Pages‘properly but is unaware of her independent nature and is ill prepared for what lies ahead. In the opening act, when Higgins finds her in Convent Garden, Shaw portrays Eliza as unfeminine and outspoken, if not somewhat rude and this is in sharp contrast to the ladies, Clara Eynsford-Hill and her mother, who are waiting in the rain expectant that Claras brother, Freddy, will do his ‘duty and provide them with a taxi. They are quite disgusted by Elizas attitude and Mrs Eynsford-Hill is obviouslyRead MoreRevenge from a Womens Broken Heart in Metamorphoses and Ishtar from The Epic of Gilgamesh614 Words   |  2 Pagesexample, Medea. Well some can argue what she did was wrong, but when you break it down it was not her fault that led her anger down that path. Medea is not the only person to have her heart broken and seek revenge. Their have been others. I am going to compare and contrast other stories we have read where female characters seek revenge from the ones they love. Such as, comparing and contrasting the actions of Medea with Juno from Metamorphoses, and Ishtar fro m The Epic of Gilgamesh. Well Medea andRead MoreTreatment of Women in Ancient Literature Essay1647 Words   |  7 Pagesmentioned, there are many contrasts to this â€Å"good† woman who waits, maintains chastity, and is silent. Euripides’ Medea is a character that does not follow the norm of the female role. In the classical age, women were expected to be meek and powerless creatures, and when they were not they were usually considered to be hysterical. Medea’s strength is portrayed as her madness as she takes control and decides the fate of her enemies. She is a strong character and Euripides allows Medea to have a voice byRead MoreSusan Glaspell s Jury Of Her Peers1841 Words   |  8 Pagesaround the strange death of john wright. 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Regulatory Approaches For Combating Airbnb â€Myassignmenthelp.Com

Question: Discuss About The Regulatory Approaches For Combating Airbnb? Answer: Introducation The attempts of Eric vested in procurement of certain assets have been observed in the course of the past one year which is a clear indicator that he was in possession of the assets for a period lesser than a year. It has been established that capital gains could be assumed as taxable only under the condition if the selling price of an asset is greater than the cost base. Eric will also not be able to acquire the indexation benefit due to the possession of finance for less than a year (Andreas Markus, 2014). Categorized of Assets Personal use assets that are intended for personal use are generally procured for personal enjoyment and this category excludes the collectibles. Sale of assets that are procured at costs less than or equal to $10000 to other persons could not be subject to the liability of taxation on capital gains. According to the requirements of the question, the personal assets acquired by Eric include a home sound system and the shares of a listed company (Brean, 2013). While the procurement cost of the home sound system was found to be $12000 the shares were found to be costing $5000. Collectibles could be defined as assets purchased by individuals for fulfilling personal efficacies alongside providing enjoyment like personal assets. In the case of collectible that capital gains are not taxable under the condition that the procurement cost of the collectibles is less than or equal to $500 (Besley Persson, 2013). The information provided in the question facilitates an impression of the collectibles acquired by Eric as follows. Eric acquired a painting that was associated with a procurement cost of $9000 and an antique chair at a procurement cost of $3000. Another collectible acquired by Eric included an antique vase which amounted for an acquisition cost of $2000 (Becker, Reimer Rust, 2015). The data obtained from the above stated scenario could be utilized as inputs for formula to calculate capital gain on the assets which were under possession for less than a year. Capital Data of the assets Asset Cost Base of Assets Capital Proceeds of Assets Net Capital Profit/ (Net Capital Loss) Home Sound System 12,000 11000 (1000) Loss Shares in listed company 5,000 20000 15000 Profit Painting 9,000 1000 (8000) Loss Antique Chair 3,000 1000 (2000) Loss Antique Vase 2,000 3000 1000 Profit Net Capital Gain/Loss 5000 Profit Points to considers: -The assets that were acquired for personal use by Eric depict procurement costs more than $10000 which validates the taxability of capital gains on the assets (Drautzburg Uhlig, 2015). -The procurement costs of all the collectibles were estimated to be above $500 which suggests the applicability of taxation to the capital profits on the assets. -In order to identify the net profit or loss the annual capital losses have to be set-off with capital gain. The scenario suggests the provision of a three year loan by the employer of Brian to him with the condition of a special one percent interest rate. Another notable highlight is observed in the condition of the management for the interest to be repaid in monthly instalments. The loan amount is estimated to be $1 million and provision of such a substantial amount of loan at considerably lower interest rate than the prevailing rates in the market accounts for classification of the loan as fringe benefits (Farhi Werning, 2013). The element of statutory interest rate should also be considered effectively in order to determine the taxability of the benefit from the loan. According to the information provided in the question, the loan was offered on April 1, 2016 which suggests that the statutory interest rate could be estimated as 5.65% (Guner, Kaygusuz Ventura, 2014). This step involves the calculation of the loan fringe benefit through discarding the deductible rule. The deductible rule implies that the interest on the loan calculated on the basis of actual rate of interest should be subtracted from the interest on loan calculated on the basis of statutory rate of interest (Henneman, 2015). Interest according to statutory rate of interest= $1000000 * 5.65%= $56,500 Interest according to actual interest rate= $1000000 * 1%= $10000 Therefore the loan fringe benefit can be calculated as the difference between the two amounts which is = $56,500-$10,000= $46,500 The second step involves the computation of interest based on statutory interest rate with the assumption that the interest is the real amount payable Interest based on statutory interest rate= $1000000 * 5.65%= $56,500 This step should involve the calculation of tax deductible interest expense since Brian has spent forty percent of the loan for addressing future obligations and the tax deductible interest expense could be assumed as hypothetical in nature (Higgins Pereira, 2014). The tax deductible interest expense could be calculated as follows: The real tax deductible interest expense for Brian should also be calculated since Brian has utilized 40% of the loan for dealing with future obligations (Jaimovich Rebelo, 2017). The real figures for tax deductible interest expense could be calculated as follows: $10000 * 40% = $4000 This stage involves the subtraction of actual amount from the hypothetical figure in order to reach a specific conclusion. Therefore, $22,600- $4000= $18,600 The final taxation amount is estimated in this step through subtracting the amount calculated in the fifth step from that determined in the first step.Hence, Brian has to pay a final amount of, $46,500- $18,600 = $27,900 The conditions in which interest is paid at the termination of the loan rather than in monthly instalments, the deemed period in case of the loan would have to be calculated from the time when the interest becomes payable (Mellon, 2016). In the case of monthly repayments the deemed period is assumed from the time when the interests are paid respectively. On the other hand, it is necessary to emphasize on the case if Brian is not obliged to repay the interests then the computation has to follow the similar approach only with the assumption of zero actual interest rate (Matter, 2016). 3.The scenario depicts the agreement between Jack and Jill who are husband and wife to rent a property under the condition that Jack would be eligible for 10% of the profits earned from the property while the wife, Jill, would be eligible for 90% of profits. Furthermore, the agreement also involved Jacks consent to bear complete responsibilities of any sort of losses thereby relieving Jill of the burden (Maurer, 2016). Hence it can be stated that the loss of $10000 observed last year becomes the sole liability of Jack without any responsibility of Jill in the case. On the other hand, Jack also has the opportunities of offsetting the loss of $10000 through his other incomes thereby reaching on a final estimation of net profit or loss for the concerned year. Jack also has the option to carry forward the losses for subsequent years until the point where the property has to be sold which can lead to either profits or losses for Jack and Jill (Piketty Saez, 2013). In event of a loss, the responsibility for the entire amount is vested in Jack who has the privilege to carry forward the losses or implement them for determination of net profit or losses in the concerned year or upcoming years (Thomson, 2015). On the contrary, if an event of profit is encountered then the amount must be distributed in the agreed shares of 10% of Jack and 90% for Jill respectively. Jack also has the privilege of offsetting the loss of $10000 incurred last year with the profits acquired from sale of property. Therefore, it can be concluded that Jack can offset the losses of the past year in the present year through income that can be acquired as profits from the sale of the property (Wallace, 2015). However, if there are no observed profits in the current year, then Jack is responsible for the losses with the exclusion of Jill from such undertakings. Hence it can be concluded that Jill would not be subject to any consequences in context of tax treatment while Jack is obliged to be responsible for the losses in his accounts. The case of IRC v Duke of Westminster [1936] AC 1 provided insights into the fact that an individual is rightfully entitled to utilize legal strategies and resources for decreasing total income at the end of a year. Therefore, it can be imperatively observed that in cases where an individual decreases their total income at the end of the year, the Commissioners of Inland Revenue are not authorized for inquiry into the matter or pressurizing the individual to increase their payable tax (Thomson, 2015). However, it is necessary to consider that such rule is applicable only in cases where an individual utilizes authentic measures for decreasing total income at the end to the year helping them in reducing the total payable tax. The notable principles that can be apprehended from the case include the following: Every individual is rightfully eligible to implement strategic measures in accounting leading to depreciation in their total income An individual is not liable to pay additional taxes if the procedures adopted for decreasing income are ethical and moral. Adoption of legal means to decrease the total payable tax amount also indicates that an individual cannot be questioned for validity. The individual is also exempted from any sort of pressure to pay an increased amount of tax. However, the validity of the above mentioned rule could be questioned on the grounds of inferences drawn from new case laws in the contemporary scenario (Jaimovich Rebelo, 2017). The prominent difference could be observed in the reforms in ideologies underlying review of accounts and their management. In the current scenario, the rule can be presented as follows: The rule mentioned previously holds significance in the contemporary environment in order to prevent organizations from utilizing unscrupulous means for modification of accounts to accomplish superior advantage. The rule is also reflective of the legal right for businesses to execute their operations feasibly (Higgins Pereira, 2014). An example of the application of the rule can be observed in a company which is encountering losses and is unable to fulfil its obligations. This type of organization could prefer alteration of balance sheet amounts alongside writing off their fixed assets according to the intended values. The organization should also emphasize on the significance of authenticity of the documents that are used to justify the transactions (Henneman, 2015). On the other hand, the organization is liable to experience backlash in event of adopting unethical means for management of accounts due to the rule. Therefore, it can be concluded that transactions which facilitate ef fective operations of an enterprise could be considered valid from a legal perspective without any concerns of questioning by legal authorities. The scenario indicates the abundance of big pine trees in the piece of land owned by Bill which in turn is intended by him to be used as grazing grounds for sheep. In order to accomplish this feat, Bill has to ensure that the trees are cut from the property. Hence, Bill hired the services of a logging company which agreed to reimburse Bill with $1000 for every 100 meters of timber (Guner, Kaygusuz Ventura, 2014). The question that needs to be addressed in this context is the applicability of the tax on Bill for the amount of profits earned by the logging company. The question does not provide clear insights into the exact amount of receipts for clearing of trees which implies the assumption that is a revenue receipt in hands of Bill. Therefore, Bill is not liable to pay the capital gains tax. The lump sum amount attained by Bill can be considered as a capital receipt in his hands. For example, if Bill receives $50000 from the logging company for removing the timber from his property then that amount can be ascertained as capital receipt for Bill. Considering the payment as capital receipt could be validated on the grounds of the lump sum nature of the payment alongside the zero presence of recurring receipts (Farhi Werning, 2013). Another characteristic that should be noted in this context is that the transaction is underlined by the provision of rights to another party for removal of trees from the property. Hence it can be observed that since the receipt in the hands of bill is a lump sum amount and has been considered as capital receipt, the amount is taxable according to the rules of capital gains tax. The scenarios depicted above provide an illustration of the fact that Bill is acquiring money in either case. The first case suggests that Bill receives payments in re curring receipts which are also small in nature while in the second case Bill receives a capital receipt in the form of a lump sum amount of $50000 which is not recurring in nature. The concern of providing the right to the logging company for clearing of trees from the property is also liable for classifying the lump sum amount eligible for capital gains tax (Farhi Werning, 2013). The receipt in the second case is larger in amount and can be estimated as one-time in nature owing to the considerable period of time required for regrowth of the trees after cutting them down. Hence the second case indicates that Bill is engaged in the sale of an asset to another company for a considerable amount alongside providing rights to the company. According to the precedents of taxation law, sale of assets for consideration by one party to another implies consideration of capital receipt and taxability for the seller (Farhi Werning, 2013). On the contrary, the first case depicts formidable imp lications towards recurring receipts which in turn limit the prospects for acquiring capital gain tax. Therefore the scenario in the first case should be addressed through normal taxation rates rather than subjecting the profits to capital gains tax.; References Andreas, O. and Markus, H., 2014. Taxation of income from domestic and cross-border collective investment. Brean, D.J., 2013. 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