March 2025

Taxation

Record-Keeping and Filing Obligations

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Record-keeping and filing obligations are essential components of financial compliance for businesses and individuals. Maintaining accurate and timely records ensures transparency, supports tax reporting, and aids in financial decision-making. Failure to comply can result in penalties, audit issues, or legal consequences. These obligations apply throughout the business lifecycle—including commencement, operation, and cessation. 1. Importance of Record-Keeping Legal Requirement: Most tax laws mandate that businesses retain specific financial records for a defined period.… Read more
Taxation

Cessation of Business

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The cessation of business refers to the formal termination of all trading activities by a sole trader, partnership, or company. It marks the end of a business’s operational life and has significant implications for taxation, accounting, and compliance. Properly identifying the date of cessation ensures that final tax obligations are fulfilled and any reliefs or liabilities are accurately calculated. 1. Definition of Cessation Trading Ends: Cessation occurs when a business permanently stops its trading operations with no intention to continue.… Read more
Taxation

Commencement of Business

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The commencement of business refers to the specific point at which a person or entity begins trading with the intention of making a profit. It marks the official start of business activities and has important implications for taxation, accounting, and legal compliance. Recognising the exact commencement date is critical, as it determines the beginning of the business’s tax obligations, eligibility for deductions, and financial reporting requirements. 1. Definition of Commencement Trading Start: Commencement occurs when the business begins active trading—not merely preparing or setting up.… Read more
Taxation

Commencement and Cessation of a Business: Tax Implications

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Commencement and cessation refer to the start and end of a business’s trading activities. These events are critical for tax purposes, as they determine how and when income is assessed, how losses are treated, and what tax obligations must be fulfilled. Understanding the rules that apply at the beginning and end of a trade helps ensure compliance with tax laws and accurate determination of taxable income. 1. Commencement of Business A.… Read more
Taxation

Recognising the Basis of Assessment

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In taxation, the basis of assessment refers to the rules and timing by which income or profits are allocated to specific tax years. Recognising the correct basis of assessment is essential to determine when income becomes taxable and under which period it falls. This ensures accurate tax reporting, compliance with legislation, and minimisation of disputes between taxpayers and tax authorities. 1. Importance of the Basis of Assessment Accurate Tax Liability: Ensures income is taxed in the correct period, avoiding overpayment or underpayment of tax.… Read more
Taxation

Reassessing the Laffer Curve: Theoretical Foundations, Empirical Evidence, and Fiscal Policy Implications

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The Laffer Curve has long been a central concept in public finance and taxation theory, proposing a non-linear relationship between tax rates and government revenue. Popularized by economist Arthur Laffer in the 1970s, it asserts that there exists an optimal tax rate that maximizes revenue, beyond which higher rates lead to declining collections due to disincentives to earn, invest, or comply. Despite its intuitive appeal, the Laffer Curve remains a topic of considerable debate, especially in the context of real-world fiscal policy.… Read more
Business and Technology, Finance

Central Bank Digital Currencies (CBDCs): Implications for Monetary Policy and Financial Stability

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The global rise of digital payments and cryptocurrencies has sparked intense interest in Central Bank Digital Currencies (CBDCs)—digitized forms of sovereign money issued and regulated by central banks. As of 2024, over 130 countries are exploring CBDCs, with several already in pilot or operational phases. This article examines the theoretical motivations, economic implications, and potential risks of CBDCs, focusing on their impact on monetary policy, commercial banking, and financial system stability.… Read more
Company Law

Quasi-Contracts

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Quasi-contracts are not actual contracts formed through mutual agreement, but rather legal obligations imposed by courts to prevent unjust enrichment. They are based on principles of fairness and equity, ensuring that no one benefits unfairly at another’s expense. Understanding quasi-contracts is essential in business law as they provide remedies in situations where no formal contract exists but justice demands compensation. 1. Definition of Quasi-Contracts Meaning: A quasi-contract is a legal construct where the court creates a contractual obligation between parties even though no formal agreement exists.… Read more
Company Law

Unenforceable Contracts

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Unenforceable contracts are agreements that, while valid in substance, cannot be enforced by a court due to a legal technicality or failure to meet statutory requirements. These contracts contain the essential elements of a valid contract—offer, acceptance, consideration, capacity, and lawful object—but lack enforceability under specific legal conditions. Understanding the nature of unenforceable contracts helps parties avoid agreements that are legally ineffective despite appearing legitimate. 1. Definition of Unenforceable Contracts Meaning: A contract that is valid in form but cannot be upheld in a court of law due to legal or procedural defects.… Read more
Company Law

Voidable Contracts

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A voidable contract is a valid agreement that remains enforceable unless one of the parties exercises their legal right to rescind (cancel) it. Unlike a void contract, which has no legal effect from the beginning, a voidable contract is initially binding but may be annulled under certain conditions. Understanding voidable contracts is essential in protecting parties from unfair or involuntary agreements. 1. Legal Definition Meaning: A voidable contract is one that is legally binding and enforceable unless and until it is rejected by the party entitled to do so.… Read more
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