Managing Successful Customer Relationships, Research Paper Example

Fact

Tracy who is sales representative, working for a company by the name national pharmaceuticals. She uses car belonging to the company since she has a vast sale territory. Her working period is 16 to 19 hours. While on her business trips. She pullover in suitable locations like parks or rest stops, she sleeps briefly at the backseat of the company car.

On a related case a  passenger ferry ferries tourist from Seattle to Victoria on round trips  of which each trip take 15 to 17 hours of which there is a lay over in Victoria for 6 to 7 hours. Ferry boat captain by the name Mark takes a nap for four hours in a cot in the pilothouse of the ferry

Issue

In the two instances the question that arises is that, are the two taxpayers entitled to a deduction in cost of meals purchased during their trip?

Discussion

In the i.r.c 62 indicated that travelling expense which includes meals and lodging are allowed as deduction during tax calculation. On that score excluding any extravagance and lavish expenditure during the cause of carrying any trade. This can be interpreted as: if the taxpayer employment nature is in such a way that it is reasonable for him to rest or get sleep during the trip while undertaking his / her work in order to meet the expectation or demands of his employment. In the case of Lucy Since she works long hours and she tend to cover vast region in order for her to produce excellent result all her meals are justifiable and allowable against tax (Brealey & Myers, 2003). In the eye of law that can’t be view as benefit but as a necessity for successful completion for the task at hand

In the case of mark the same applies since a lot of is spent during the trips and it necessitate for one to take meals and short nap to necessitate excellent performance of work. Hence he is not accessible for the tax deduction as it is well stipulated in the international tax code number 62 of which exclude extravagance and a lavish life style.

Conclusion

Since the two were on the course of employment they will allowed to deduct the meals expenditure they incurred in the course of their employment since the tax law through the international revenue code allows for that as stipulated in the I.R.C.62.

Assignment 2

Fact

A company called Tidyco. The company usually makes weekly deposit in a personal account which is us when ascertaining tax payable at the end of the financial year, unfortunately it came to light that they had siphon off an amount of $200,000 of the weekly collection and toke them home instead of depositing to the account. Hence when the accountant was reporting the total income generated. That amount did not future, hence not analyzed for tax purpose. Thou it also appears that at the end of the period that the company is operating at a deficit.

Issue

The question that arises is can we hold the company guilty of the charge of tax evasion in regard to the law. Keeping in consideration that the company is operating at loss

Discussion

In regard to the tax law an occurrence of an intent to defraud the government through tax evasion can clearly be seen though the crime is not committed since even after the $200,000 amount that was stashed is added to the total income generated the company report a deficit. So in the eyes of the law no crime committed. Hence one cannot justly equate intent to commit a tax evasion crime to the crime its self since one has to prove beyond reasonable doubt that the crime was committed and in this case no crime is committed at all. To prove that the crime was committed the following facts must be presented: one there was an intention to evade tax, secondly the some of the income generated were withheld. The only response that can be envisioned given the government involvement is lobbying for better lease terms or a speeding up of the current one. They could also use the same approach to deal with the 2-10 percent spending on taxes (Pandey, 1994).

Thirdly, those amounts when added to the total income generated can change their financial report from deficit report to a surplus report.

Conclusion

Hence no crime can be preferred against the company in relation to the purported crime but the company should be cautioned against withholding any income generated be the amount being material in the view of financial reports used when ascertain tax payable if any.

Assignment 3

Essay

Common dividends arise where the company has declared a profit at the end o year and board of of the company deems it fit to give back part of the profit to the owners of the company in accordance. In companies that are in stock exchange in the New York stock exchange, many a times they are forced by circumstances to declare dividends so as to make their share competitive in the mark and by so doing they enter into the league of the blue chip companies. During the 2008 and 2009 economic crisis the companies declared dividends even after making little profit, by so doing the gain stability because it build confidence to its shareholders. The balance scorecard enables the firm to identify specific areas that needs the focus of the company in terms of financial resources as well as time resources. It is an imperative tool that is also necessary for budgeting purposes (Ross et al, 2001).

Consequently, the balance scorecard has the strength of spurring motivation among employees.  Moreover, it will also ensure that the employees are programmed to various relevant training programs thus lead to a high quality employee workforce. Dividends for closely held companies are not regularly and are not paid at the same rate when they are declared this is due to the fact that the person holding those share are not day to day trader in the stock market hence their shares price don’t Fluctuate frequently as compared to publicly traded shares. The other strength which is perhaps the most imperative is that the balance scorecard leads to enhanced customer satisfaction. Once the customers are satisfied, they will be able to fly more thus increase the revenue of the firm. The balance scorecard reiterates the need for the firm to obtain feedback from the customers thus increase the customer’s expectations.

Some of the factors publicly companies consider of whether to pay dividends or not are (Michalis, 2008):

• Profits declared in that financial year
• The last time they declared and paid their dividends
• Future plans of the company i.e. they may be intending to plough back the profit to increase the share capital of the company.
• Vote at the general meeting in matters relating to dividends payout, of which in some instances the shareholder may decide to capitalize the dividends, there for increasing their share capital.
• The closely held companies will look at the following while decided whether to declare and pay dividends to the shareholders:
• The vote of the shareholders during their general meeting
• Profits declared
• Policy of the company since many of this company may be family owned they may decide unanimously that the company will not declare dividends until after they achieved a certain goal for example opening more branches
• Profits declared if the profit posted are minimal many a times they tend not to declare profit since the share holder are loyal tom the company and that may not pose a danger to the stability of that company.

References

Michalis, M. Managing Successful Customer Relationships in the corporate entities, Journal of Financial Services Marketing, vol.4, no.1, 2008, pp. 56 – 78

Brealey and Myers (2003). Principles of Corporate Finance. (7th ed.). Sydney: Tata McGraw Hill publisher

Pandey, I. M. (1994). Financial management. (7th ed.). London: Vikas publishing house.

Ross et al. (2001). Essentials of Corporate Finance. (3rd ed. McGraw Hill publisher.