Critical Thinking – Lionking

SUMMARY The Lion King is an animated film by Walt Disney. The movies entail trust, character, suspense and betrayal. The story presents a story about lion’s race and their kingship story. It began with the story of a lion’s cub journey to adulthood and acceptance of his royal destiny. Simba begins life as a young cub with a promising future of becoming a king when he attains the stage of adulthood. He is the son of King Mufasa.Simba’s happy childhood took a tragic turn when his uncle, Scar strategically murdered the king and blames Simba as the curse of the King’s death and suggests that Simba ran away from Pride Rock in order for him (Scar) to be king. While in exile, the young lion befriends a pair of warthog and meerkat named Pumbaa and Timon respectively and the three combined lived a carefree jungle life. As Simba approaches adulthood, he coincidentally met his childhood friend Nala and the past began to unfold.He also had an encounter with Rafiki, th e monkey, from his past and later on was later visited by the spirit of his father urging Simba to take his place in the circle of life as the rightful king and the true heir to the throne of Pride Rock. Simba was finally persuaded of going back to Pride Rock and confront his uncle Scar for the throne. It was later learnt that Scar was the brain behind king Mufasa’s death and wanted to kill Simba also for the second time but Simba defeated him and reclaim Pride Rock and the hyenas were banished also.The Lion king, Embraced by most children and adults alike, the film spawned hit musics like â€Å"Can you feel the love tonight†, â€Å"The Circle of life†, also entails the likes of Elton John, Tim Rice and Hans Zimmer. In late 2002, the Lion king was re-released in the large screen IMAX format. VAGUENESS: In Critical Thinking, a sentence is considered vague when it is unclear what the messages or the ideas the speakers intend to convey. Vagueness can be caused by u nclear standards, confusion over the context, imprecise choice of words, and regional or cultural causes.In the movie The Lion King, here we have found a few examples of vagueness and our explanations. Vagueness 1:(09. 05) [pic] Yes, Simba’s response tells us that Mufasa is actually making a vague statement, because there is no further explanation afterwards on the statement that he has made. We totally have no idea the exact responsibilities to becoming a king, nor what it takes to be king. In this situation, the vagueness is evoked due to the confusion over the context. For instance, do someone need to be more ruthless? , Or more merciful? to become a king? We never know from what is stated by Mufasa. It at the same time causes ambiguousness here. Vagueness 2 (14. 25) Here comes a concise example for the vagueness analysis in the movie. Apparently, Simba’s and Nala’s reaction shows that they are confused by what Zazu is actually trying to imply. Zazu uses some choices of words that Simba and Nala have difficulty in understanding. These imprecise choices of words causes confusion for Simba and Nala, as they are oblivious to the meaning of the choice of words zazu employed.Both Simba and Nala does not understand Zazu’s use of deep and complicated language. And at last with this simple but easily-understandable sentence, Simba and Nala finally understood the message that Zazu wants to express. Vagueness 3: (03:15) Refer to the Circle of Life scene and Painting scene. In these two scenes, we can see Rafiki is doing the same action which is applying something, looks like juice and sand, on the forehead of Simba. Nothing really explains what Rafiki’s actions unless you have Christian experience that it’s a symbolization of a baptism-like ritual on Simba..As an audience without any Christianity knowledge, you would not have known that Rafiki’s action of putting the sand and coconut juice he collects on Simba’s brow as a ceremonial crown in fact has its hidden meaning. Here it exists that cultural or religious factor 8causes vagueness to a part of audience population. We might be wondering what is the meaning or the messages this scene intends to put across. Furthermore, can we substitute the juice or sand with some other materials? Or must it be specific using this particular material? This indicates the confusion over the context used in the scene.Vagueness 4 (08:52) In this context, a vague standard about Everything that Simba is going to possess in the future is used. Does it mean that as long as there is no more light, such as night time, Simba would then lose the things that he owns? Audience may have difficulty in understanding the standard and then interpret differently what the story actually narrates. FACTS VS OPINIONS: A fact is a specific detail that can be proven as true based on objective evidence whereas an opinion is a feeling, judgment, belief, or conclusion that cannot b e proven true and it is always subjective. Fact 1: (09. 25)In this part of the story, Mufasa is trying to teach his son Simba a lesson on the biodiversity on the Pride Land. He is conveying a fact to his son, about which how the circle of life goes. This statement is objective and purely based on what happens in the reality of nature. Mufasa does not incorporate his own feelings or perspective in his statement. Besides, this is also a generally known biology fact, whereby we understand our own position in the vast universe, and it is scientifically verified. Thus, the audience can easily understand the statement and accept it, without analyzing if the statement is true or false and valid or invalid.Fact 2 (23:28) According to this statement, Mufasa is just accounting for a fact that has just happened. He points out what is in reality and it is objective. Simba’s misbehaviors have caused him danger and might have killed him when the hyenas tried to hunt him(Simba). And Mufasa stated out what Simba has just done, which is disobeying him, because Simba went to the shadowy place which Mufasa has warned him not to. It can be verified through watching the movie. Besides, we do not see there is use of biased word judging the incident. Opinion 1 (04:48)Scar makes the statement that life is not fair solely because he shall never be the King. This is a self-centered statement which automatically makes it a subjective statement. And it is a rhetorical question, where Scar wants people to agree with him, and thus it is biased in terms of the choice of words used. We can feel the sense of shame that Scar is trying to express when he cannot be the King, in which we can say the statement is loaded with emotion and is purely a personal judgment to the life he has. Opinion 2 (25:41) In this part of the conversation, I hate lions, shows rather much a biased word is used in judging the lions.Apparently, Banzai does not like lions. Banzai makes the statement according to h is own judgment and it is loaded with emotion. The hyenas think that the lions are pushy, hairy, stinky and ugly and that is why they dislike lions. But that does not make more reason for the audience to listen to them and consequently hates lions as well. Besides, every individual has their own point of view on interpreting the reality. Some people may find lions as cute and brave. Hence, these statements are purely based on the hyenas’ opinions and they are subjective, whereby it is an opinion.They are same the lions, Scar and the other lions, but the hyenas have different judgments on them. When Scar states that lions are not all bad, hyenas agree with him and say that it is just Scar the good lion. And this situation vividly depicts that they judge things differently based on their opinions. INTERROGATIVE AND RHETORICAL QUESTIONS: There are a lot of questions in the movie in which we need to analyze whether they are interrogative questions or rhetorical questions so that we can better understand the messages the director of the movie tries to convey.An interrogative question is meant to solicit some information from someone while a rhetorical question is to encourage someone to agree or to act in a certain way. Interrogative Question 1 Scar asks Simba what he has done and supposedly he expects some answer from Simba and thus, Simba answers and tells what has happened to his dad in the stampede. This is a form of interrogative question where the question is meant to get some information from the other person. Rhetorical Question 1 When Scar states that â€Å"what will your mother think? † he does not actually expect an answer from Simba.Instead, he wants Simba to feel guilty of his father, king Mufasa’s death. Scar wants Simba to reprimand himself for that and leave the Pride Land, whereby Scar will subsequently become the King of the Pride Land. And refer to the following part of the conversation, Scar persuades Simba to leave the plac e. And this makes the rhetorical question established to encourage Simba to act in the way Scar wants him to. Interrogative Question 2 This is a question whereby Simba asks Scar what he should do. And Scar then replies and asks Simba to run away from the land and never come back again.Soliciting information is thus involved in the statement and makes it an interrogative question. Rhetorical Question 2 In the context, Simba asks Nala if the place is great. Simba does not actually require an answer from Nala as he has assumed himself that the place is nice. He actually only wants to get agreement from Nala that the place is nice. Later on, Nala agrees with Simba regarding the question. Therefore, it shows that the rhetorical question is powerful in convincing somebody to agree with it. Interrogative Question 3 Nala questions Simba why he never went back to Pride Rock.And Simba states his reasons. This is another common form of interrogative question where information is required for t he purpose of asking the question. Interrogative Question 4 : Leading question According to the conversation, Simba asks a question in which he wants to make up his mistake to his father and he kind of directs Mufasa to answer in the way that Mufasa has already forgiven him. In Critical Thinking, a leading question is a question to guide someone to answer in a certain way or in the way that you want. Most of the time, a leading question is framed to be a yes-or-no question.So when Mufasa answers â€Å" Right. †, it means that Simba has succeeded in getting his father’s forgiving. [pic] [pic] [pic] [pic] [pic] ———————– Mufasa: Oh, there's more to being king than– getting your way all the time. {Mufasa starts back down the rock} Simba: {Awed} There's more? Zazu: {Flying down} Oh, just look at you two. Little seeds of romance blossoming in the savannah. Your parents will be thrilled†¦ {He lands in front o f them} †¦what with your being betrothed and all. Simba: Be-what? Zazu: Betrothed. Intended. Affianced. Nala: Meaning†¦? (Continued)Zazu: {As though holding on to his coat lapels} One day you two are going to be married! Simba: Yuck! Nala: Ewww! Mufasa: A king's time as ruler rises and falls like the sun. One day Simba, the sun will set on my time here- and will rise with you as the new king. Simba: And this’ll all be mine? Mufasa: Everything. Simba: Everything the light touches†¦ Mufasa: Yes, Simba, but let me explain. When we die, our bodies become the grass. And the antelope eat the grass. And so we are all connected in the great Circle of Life. Mufasa: {Continue} You could have been killed.You deliberately disobeyed me. And what's worse,- you put Nala in danger! Scar: Life's not fair, is it? You see I — well, I†¦ shall never be King. {exhale lightly} And you†¦ shall never see the light of another day. Banzai: Yeah. Man, I hate lions. Shenzi : So pushy. Banzai: And hairy. Shenzi: And stinky. Banzai: And man are they †¦ Shenzi and Banzai: Uuug-LEE! {They laugh. } (continued) (25:21) Scar: {From his perch we saw in the Hyena chase} Oh, surely we lions are not all that bad. Banzai: Ohh. {relieved from the surprise} Oh Scar, it's just you. Scar: Simba. .. What have you done? (36:99) Simba: {Jumps back, crying} There were wildebeest and he tried to save me†¦ It was an accident, I†¦ I didn't mean for it to happen. Scar: {Embracing Simba, yet still distant} Of course, of course, you didn't. No one†¦ ever means {pulls Simba closer. Simba hides his face on Scar’s foreleg} for these things to happen†¦. But the king is dead. {looking with mock regret at Simba} And if it weren't for you, he'd still be alive. {Simba is crushed, believing his guilt. Another thought â€Å"occurs† to Scar. } Oh! What will your mother think? 37:29) Simba: {Sniffing} What am I gonna do? (37:33) Scar: Run away, Simba †¦. Run†¦. Run away, and never return. Simba: Isn't this a great place? (59:01) Nala: It is beautiful†¦. But I don't understand something. You've been alive all this time. Why didn't you come back to Pride Rock? (59:10) Simba: {Climbing into a â€Å"hammock† of hanging vines} Well, I just †¦ needed to get out on my own. Live my own life. And I did. And it's great! {He sounds almost as if trying to convince himself as well as Nala. } Simba: We're pals, right? (24:32) Mufasa: {Gentle laugh} Right.

Noughts and Crosses Essay

English teachers don’t need to be told the enormous value and pleasure of reading whole texts as class readers. Little compares with that feeling when a class are truly engaged in the reading of a really good book. Those moments stay with you forever – indeed, they fuel the desire to find another such book to repeat the experience, again and again. Fortunately, contemporary writers of fiction for young adults continue to offer us fresh opportunities to enjoy literature with our students. Oxford Rollercoasters is a series that offers teachers the opportunity of studying first-class novels – recently written for teenagers – as whole-class readers with Year 7, 8 and 9 students. Focus on assessment of reading Oxford Rollercoasters includes titles with varied themes, challenging subject matter and engaging plots – for example, Noughts and Crosses takes a very contemporary slant on racism, Firestarter features a modern-day compulsive arsonist, while Fire, Bed and Bone is set during the Peasants’ Revolt. Each novel is accompanied by innovative and engaging teaching materials, specifically designed to help students access the texts and to support learning as required by the National Curriculum. Rollercoasters is firmly based on the reading objectives in the Framework, and draws on approaches to reading fiction recommended by the English strand of the Secondary National Strategy. The series is written by practising teachers and consultants, and, while concentrating on the explicit teaching of reading skills, also draws on approaches to literature through drama and media. Theories behind both assessment for learning and thinking skills are also embedded in the materials. Time-saving resources For each Rollercoasters novel there is a set of Lesson Plans, specifying particular objectives, assessment focuses and learning outcomes. These are accompanied by a compact Overview (see page 4) which summarizes the scheme at a glance, including the necessary resources for each lesson. The Navigator offers a clear plot summary, linked to relevant chapters, to help speedy location of particular parts of the novel. Lesson Plans are accompanied by full, varied and practical Worksheets and OHTs, and drama activities are common within the teaching schemes. The worksheets and OHTs are customizable to meet the needs of a particular teacher and class. For every novel there are suggested guided reading sessions as well as the opportunity to develop further specific group teaching. Class, shared and independent reading are also fully supported in the Lesson Plans. The practice of keeping some form of Reading Journal during the study of the novel is encouraged in many of the schemes, and there are several attractive models for such record-keeping across the teaching materials. Every set of Lesson Plans ends with its own student Reading Assessment Progress Sheet, which the teacher can then use to identify areas for development for each student. Reading Guide Each of the novels has its own student Reading Guide, which contains a rich variety of material to help to engage students in their study of the novel. Each one features unique author’s craft material, giving students a great insight into the writing, editing and publishing process. Ideas for wider reading and for the extension of independent reading are also provided in the Pathways section at the end of the Reading Guide. Website support The Rollercoasters website provides access to the free on-line teacher’s resources, sample chapters of the novels and further author information. Oxford Rollercoasters provides first-class teaching resources for first-class contemporary fiction. The series is designed to engage the widest possible range of students in reading for pleasure, and we feel confident that it will contribute to those memorable experiences of reading together in the secondary classroom.

Michael Gow’s “Away” Essay

Drama is a genre that is deliberately written for performance, and therefore, the reader’s understanding of the characters and issues is always improved by its staging. â€Å"Staging† in Drama means the process or manner of putting a play on stage. This refers to the positioning of the characters and props, the way the actors move, the way they use their voice and how the character looks. Gore Vidal once said, â€Å"A talent for Drama is not a talent for writing, but an ability to articulate human relationships.† By this, Vidal meant that to convey a play properly, association between the characters has to be real, dynamic action that captures the attention of an audience. Away is a charming play that deals with family, relationship, life, growing up and death. It depicts the final months leading up to the disintegration of the condition of Tom, a boy dying from Leukaemia. In the final stages of his life, he is desperate to achieve all that a normal person would in his short lifetime. Emily McPherson of the Age newspaper says, â€Å"This moving play prompts us to consider what is ultimately most important in our lives,† and also considers how relevant it is to Australians, even today, noting that â€Å"Every Australian can relate to this play and learn about the deeper meaning to life†. One factor of staging is Stage Directions. These are the way the playwright communicates with the director in regards to movements and actions of characters, positioning of props, and types of sets. These aspects affect the way the audience views a scene, as they can reveal issues, power relations, social positioning, and relationships between characters. In the last Act of Away, an entire scene is performed only through Stage Directions, yet it is a major scene in the conclusion of Away. This scene depicts the returning of Coral to her husband, Roy, and the subsequent resolution of their differences. Jim and Gwen are reconciled as well. In the case of Roy and Coral, the audience sees their reconciliation through the symbolic offering of the shells to Roy from Coral. With just stage directions, we can tell that this is Coral offering herself, her old self, to Roy. She is asking for forgiveness and we know through Roy’s kissing of  the shells and Coral herself that he has accepted her apology. The directions on the positioning of the characters on stage have to be effective to avoid audience confusion, as there is often split scenes. The way the set is used (â€Å"use of space†) is a useful medium to show conditions of the scene. These can include time of day, where the scene is set, the time period of which the scene was set, and the motives of the characters. Props are often included to add reality to the scene and often offer symbolism relating to the character that uses them. On Christmas Day at the campsite that Gwen’s family is staying at, Gwen, rushes onto the scene with a 12-inch fake Christmas tree and announces â€Å"If you want to have a Christmas you’d better get started now so we can get it over with. Hurry up. I don’t spending half the day sitting around waiting for people to open their presents.† This Christmas tree, being fake, represents Gwen’s resentment of Christmas- she obviously thinks it is a real chore. This does not make Meg and Jim’s Christmas real- their they are, on a day that is supposed to promote goodwill, the importance of the family and other relevant values, and their mother and wife is acting like she’d rather be any other place than with them- this day is an inconvenience. Characterisation can be defined as the representation of a character on the stage, especially by imitating actions, gestures, or speeches. Every element that combines to make a character is included in characterisation. Costumes are a helpful channel of symbolism and we can learn different things about the characters, both in connotative and deconnotative ways. To exemplify this, look at Vic’s new sunhat, which she comments on in Act Three, Scene Five- â€Å"I love my new hat.† This sunhat represents her role as the dominant partner in the family through Harry’s line â€Å"We could have sheltered under your hat.† The charisma of the sunhat reveals not only her personal charisma, but as this hat is only worn during the holiday, shows what a great time they are having on vacation. Tom also wears a Hawaiian shirt during the beach holiday scene, reflecting his laidback character. This is just one of many hints that are given to the reader to show Tom’s parallels with Puck, even though this one is very subtle. Tom acts and represents the catalyst, through his resolve and vitality; despite the disease he gives  each family hope. He represents the reasons for the reconciliation of each family, just like Puck in A Midsummer Nights’ Dream. Body language can demonstrate relationships between characters and character motive. Gestures show reactions, emotions the character is dealing with and the implications of these emotions. Expressions work similarly to gestures. Both help to put what the character is saying into context. We can see when Tom lies down on the beach during his walk with Meg that he is offering himself to her sexually. Meg rejects this offer. When this scene in viewed in performance, we can tell that Meg is rejecting Tom because she begins backing Away from him and cautiously glancing back at the path they came, wanting to go back to the safety of her parents, where Tom can’t impose anything like this on her. The audience has gone from seeing the two characters walking closely, side by side, to seeing Meg back away, with a different, more guarded attitude, and ultimately leaving him and hurrying back to the campsite. Lighting is helpful in setting a mood for the scene- for example, dark lighting may conjure up a theme of doom and gloom, where as a single spotlight will centre the audience’s attention on that one character. Special Effects are sometimes used in points of extreme climax. An example of a symbolic use of lighting would be in Act Five, Scene 2. It is the last scene of the play and shows the start of the new school year- probably Tom’s last year alive. The lighting becomes bright, summery, morning. This audience can sense that this echoes the dawn of the last stages of Tom’s life. Special Effects, though not noted in the stage directions, could be used during the storm scene, in which Gwen’s family are caught in a fierce storm that leaves the family in even more disarray. Jim describes their feelings like this â€Å"There doesn’t seem to be much use to carry on with your holiday when your van’s a wreck, your boat’s smashed on the rocks and all your clothes are soaked.† The storm embodies the family’s instability and their strained relationships. The reason Tom’s family was bypassed by that storm is because Tom’s family is a happy family who are content with life and the least uncooperative. Special effects highlight climactic points like the storm. Music reflects the dialogue of a scene and can highlight the important issues in the scene. It is also and effective way to set a certain mood or feeling. In Away, Mendelssohn is often referred to in the stage directions. For example, his calming Dreams is played during Act Three, Scene Five, where Tom’s family having a wonderful, relaxing time during there beach holiday. In this case, the music is reflecting the emotions and essence that embodies the scene. Mendelssohn’s music is often referred to in Gow’s stage directions, meaning it is probably the type of music he thinks reflects the play as a whole. Staging will always enhance the audience’s understanding of what is happening on a stage. The reader/audience member’s perspective of the play is always changed through Stage Directions, Characterisation, Music, Lighting, Special Effects and use of space. Earlier, Gore Vidal’s quote, â€Å"A talent for Drama is not a talent for writing, but an ability to articulate human relationships†, was mentioned. When analysing Vidal’s quote, it can be interpreted that Vidal meant that a playwright did not just have to possess the talent of writing, but that to show an accurate portrayal of the relationships that people have to one another, and the ways in which they handle these relationships. It can be deduced that Vidal was referring to the use of not only literature but also staging techniques that would humanise the characters.

The Broadway Cafe Assignment Example | Topics and Well Written Essays - 1000 words

The Broadway Cafe - Assignment Example As part of developing a new business strategy for Broadway Cafe, Porter’s five forces will be used in examining the external environment of the business. Eventually, the Cafe’s critical success factors that contribute to the development of its comparative advantage will be identified and tackled in details. External Environment of Broadway Cafe New Entrants Establishing a coffee shop business requires very minimal capital requirement. Therefore, coffee is widely sold within the neighborhood not only by large-scale restaurants but also the local fast food chains and grocery stores. Since the threat for new business entry is very high, market competition within the coffee industry is very tight. Rivalry among Existing Competitors The threat of product substitution and barriers to entry is high. In line with this, we should consider that Broadway Cafe is selling specialized coffee products which are incomparable to instant coffee products or other brand-less brewed coffee sold in supermarkets, grocery stores, and fast food chains. In the absence of Starbucks Coffee operating within the neighborhood, rivalry among existing competitors is low. ... Aside from competing with Starbucks, coffee drinkers could also decide to simply purchase low-cost instant coffee that are readily available from the local supermarkets and grocery stores. Bargaining Power of Buyers Considering the options that buyers have when it comes to purchasing coffee products, the bargaining power of buyers against Broadway Cafe is very high. In case Broadway Cafe’s valued customers becomes less satisfied with the coffee quality and services delivered to them, each one of them has the advantage to decide on purchasing their coffee either from the local fast food chains that offers coffee or directly from Starbucks. Bargaining Power of Suppliers As a result of globalization, the bargaining power of suppliers is low because Broadway Cafe has the business advantage of purchasing its coffee products from highly competitive supplier who could offer the company with high quality coffee beans at a discounted price. As a result of purchasing coffee bean product s by bulk, Broadway Cafe could easily sell a wide-range of coffee flavors at the lowest possible price. Comparative Advantage and Critical Success Factors of Broadway Cafe over Starbucks In relation to high coffee bean quality, affordable coffee prices, and reliable customer service, the critical success factors of Broadway Cafe include the company’s strong brand equity and brand image (Bennett & Rundel-Thiele, 2005; Yoo, Donthu & Lee, 2000). In line with this, keeping the customers satisfied is one of the strength of Broadway Cafe. Over the years, the company managed to deliver what its customers want. Since Broadway Cafe was able to monopolize the coffee business within the neighborhood for a long

Business Assignment 2 Essay Example | Topics and Well Written Essays - 1500 words

Business Assignment 2 - Essay Example s  better, for in human society.† Management today is not just restricted to human resource but is now divided into various segments like management of finances, strategic management, operations management, time management, marketing management and crises management. (Finkelman, 2006). There are various functions of management that includes planning, organizing, staffing, directing, coordinating, reporting and budgeting. It is through these functions that complete and successful management can be done in an effective and efficient manner. (Finkelman, 2006). There are three different role of management or a manager that are interpersonal roles, informational roles and decisional roles. (Covey, 1992). Interpersonal roles includes role of a figurehead, leader and liaison. Informational manager’s role is of monitoring, disseminator and as a spokesperson. Decisional roles include entrepreneur, disturbance handler, resource allocator and negotiator (Mintzberg, 1973). In general, there are two approaches to management, the industrial organization approach and the sociological approach. (Covey, 1992). Industrial organization approach deals with economic theory focusing on competitive rivalry, resource allocation and economies of scale. (Finkelman, 2006). Sociological approach deals with human interaction assuming rationality, satisfying behavior and profit sub-optimality. Thus a good management style is a mixture of efficiency and effectiveness without which the desired result can not be reached. (Bush, 2003). A leader  is a person who guides others toward a common goal, showing the way by example, and creating an environment in which other team members feel actively involved in the entire process. A leader is not the boss of the team but a person that is focused to carrying out the mission of the organization. (Bush, 2003). Therefore leadership is the process by which an individual influences others to achieve a common goal and creating an environment in which

JOURNAL ENTRY Essay Example | Topics and Well Written Essays - 250 words

JOURNAL ENTRY - Essay Example As noted by Covey, a college education opens one’s future doors (65). The other people in my life who will embrace this transformation are my parents. My parents believe that getting a college education is the ultimate gift that a parent can give to their child because it empowers the child. My mother always says that with a college education, I will be in a better position to understand the changing markets and how they will impact on the family’s retirement accounts. My father says that I will be in charge of the finances in my family and to understand every aspect of management, finance and dealing with financial issues, a college education will be useful. They also constantly remind me that with the college education, the purpose is not to get a great job in future, but build a strong mind. My parents always say I have their full support. My father says he will ensure that my school fee is always paid on time, but I have to assure him that I will not miss the classes without valid reasons. My mother is enthusiastic and says that she looks forward to getting school transcripts with high-test scores. My friends will also embrace the transformation as they are also looking forward to getting a college education. The support from my friends and my parents is critical. The financial and emotional support from my parents matters because I believe without their help I would not be in school. The emotional support from my friends matters because I am always encouraged to see their optimism even in bad situations. Luckily, I am happy to say that there is no one who does not support this

Being forgotten on Google Essay Example | Topics and Well Written Essays - 1250 words

Being forgotten on Google - Essay Example Google has been hauled in front of European data regulators on the issue of being forgotten. The concept has been established as a right to the status of international ‘universal’ recognition with respect to the right of access to existing information (Mayes, 2014). The controversy is partly due to the prevailing vagueness of current rulings such as the ECJ’s ruling concerning a Spanish man who sued a national newspaper website and Google Spain (Arthur, 2014). Concern emanates from the concerns on the impacts that such rulings portend in reference to another universal right – freedom of expression. An important aspect is the subsequent interactions with the right to privacy, in addition to whether creating the ‘right to be forgotten’ decreases internet quality through such steps as censorship or the rewriting of history (Fleischer, 2011). The firm entity under review – Google, Inc – has in the past followed through with this concept deleting data because of proof of copyright violations as well as in compliance with the Digital Millennium Copyright Act (Google Inc., 2014). Being ‘forgotten on Google’ has become one of the latest concerns in our information age where the freedom of expression, unregulated Internet and our desire to learn from and share on the Internet is greater than ever. Accordingly, in current modern contexts, an increase in internet use and daily application has become a way of life given the different avenues in which individuals are able to socialize regardless of the time and distance factors. Thus, it is understandable that without such technology and technological input life as it is would be quite different (Bernal, 2011). In the 21st century, computing and communication have become critical aspects on which daily interaction and socialization are based upon. In line with this aspect, current business enterprises are hence significantly influenced in terms of management,

Music and Passion Essay Example | Topics and Well Written Essays - 750 words

Music and Passion - Essay Example According to (Carducci 311) the type of music an individual listens has a reflex action on the type of personality an individual develops. The unique thing about music is not just the beats and the tempo or the rhythm but the words that a song writer chooses to work with. The words involuntarily change the thoughts of the listener. As a person listens, they take in the meaning of the words and slowly make them part of their lives. In a greater way, one slowly starts to change their world view, their thoughts and eventually change their character. This is seen is where an individual starts to use the words that they heard in a song and this shapes their daily lives. (Carducci 123) says that lyrics of a song can great influence the thoughts of an individual in a subconscious state. Aristotle talked about music and its power to communicate the emotional states of humans as well as their character. According to (Williams 92) Aristotle says that music directly imitates the passions as well as states of the soul. An individual listening to a particular type of music they are likely to absorb the same passion and a long exposure to the music, they develop characters based in the same passions. Based on these understanding, then the music people listens to is contributing too many of issues in the society. If the type of music an individual listens to can shape their characters as well as passions, then it means that these effects will also be seen in human relationships, laws, psychological challenges such as depression as well as anger. People who mainly listen to these types of music tend to show high levels of openness to new experience, high verbal ability as well as emotional stability. These individuals also believe that they are highly intelligent and tolerant. Majority of them can champion liberal social ideals. Majority of them are political conservatives and they also tend to be

Social Psychology Assignment Example | Topics and Well Written Essays - 1500 words

Social Psychology - Assignment Example The writer in this piece acted the way she did due to many reasons. The reason she got married probably was she was pregnant. However if society had not made her feel bad about being single and pregnant, she might have acted differently. The consensus between her and Simon was an agreement to get married. The writer tried to consistently get along with Bernice, but distinctively left her husband after he refused to take up for her. Simon acted the way he did because he did not want either his wife or mother mad at him. It is true he cannot control his mother’s actions, but he can control his. If he wants his mother to stop abusing the writer verbally, Simon could speak up. It is his mother. All the situation would have taken was a â€Å"Mom this is not the time† at the wedding or birth of his son. A â€Å"I was there when she got pregnant too† would have also worked. Simon is apparently too scared to say these things. Bernice probably acted this way due to feelings of abandonment, or control issues. When a man gets married a mother can feel like she is losing her son. Most mothers deal with it, but some do not. Bernice was out of line. She was being self centered and not thinking of the happiness of her son or grandson. The solution to this problem is Simon stands up to his mother, or the writer gets a divorce. The sad part is divorce is more likely. It is hard for a child, even grown, to stand up for themselves.

A Humanitarian Mission Outside of the United States Research Paper

A Humanitarian Mission Outside of the United States - Research Paper Example This paper will deal with an assumed scenario involving the deployment of troops to assist in a humanitarian mission outside of the United States. An earthquake has hit Guam on July 17, 2012, around 0200 EST. The earthquake has had a devastating effect on the entire country. Initial reports suggest that around 1,000 people are dead while hundreds of other people are missing. It is expected that thousands more are now homeless and will require food, immediate medical attention as well as rehabilitation. The situation in Guam resembles a humanitarian crisis in the making. The government of Guam has notified the United States government regarding the earthquake and has asked for humanitarian assistance. The country is currently in a state of emergency and any help is welcome. The President of the United States is expected to shortly get to the airwaves to address the situation in Guam. Meanwhile, a decision has been made to send in troops from the United States Marine Core (USMC) and the United States Navy in order to help the people of Guam. There is little doubt that the situation in Guam is a humanitarian crisis. All efforts need to be made to ensure that this humanitarian crisis does not turn into a humanitarian disaster. There are a number of different problems that must be tackled simultaneously in order to deal with the situation in Guam. On the one hand, troops must be mobilized along with their equipment for short-term measures while, on the other hand, long-term planning such as rehabilitation has to be initiated as well. One method of dealing with this situation could be to take action as needs become apparent. However, this approach would be wasteful in terms of costs as well as repeated tasks. The real method of dealing with this situation is to initiate Crisis Action Planning (CAP).

Low risk 3 Essay Example | Topics and Well Written Essays - 250 words

Low risk 3 - Essay Example The Emperor was quite just in the fact that it is not, at least, fair, to blame the other in the faultiness of your own deeds. On the contrary, Marcus Aurelius believed that the person who caused the event was the only, and the only one, reason of the event. Furthermore, it was in the philosophy of Marcus Aurelius that a non-educated individual should not suffer from the lack of knowledge. On the contrary, it is the responsibility of the educated ones to either treat the poor in knowledge one sympathetically, or to help him\her in obtaining the knowledge. Marcus Aurelius was always trying to educate and empower his nation, and such tendencies seem to be coming from the philosophical views of the Emperor. The Stoic thoughts he followed helped his rule to be more liberal and humanistic. At the same time, as I believe, Aurelius’ ideas did not let the Emperor execute his power in its full force – blaming one single individual means missing the influential context of the ext ernal environment formed by the society and the Emperor in particular. Blaming on single individual for a single fault, therefore, means transferring responsibility for the fault from the society and the Emperor onto one person.

Liable for the Torts Essay Example for Free

Liable for the Torts Essay The question asked basically has two parts. In the first part of my essay I will try to shed some light on circumstances where an employer can be held liable for the torts of his/her employees. And after that I will focus on some of the reasons why one person is held liable in certain situations for the torts committed by another person. And then I will finally finish the essay with a conclusion at the end. Vicarious liability is where one person is held liable for the torts of another, even though that person did not commit the act itself. For an employer to be held liable for the tort of her/his employees, three conditions must be fulfilled. First, it should be a tort. Second, the one who committed the tort should be an employee. And third, he/she should be working in the course of his job when the tort was committed. Though it looks easy, in practice it is not easy as we think to determine if these conditions are met. Let us take it one by one. The employers can be held liable if only the action committed by the employee was a tort. A tort is a branch of the civil law (as opposed to criminal law) based on a claim that the defendant has caused injury or loss to the claimant by breaking a relevant obligation imposed by the general law. Having been decided on this, the next thing which needs to be decided is whether the individual who committed the tort is an employee or not. There have been few tests used over the past to determine whether someone is an employee or not. The First of those is the â€Å"control test† which was used in Yewens v Noakes (1880) case. When giving his judgment Lord Justice Bramwell said, a servant is a person who is subject to the command of his master as to the manner in which he shall do his work. So it is clear that, the employer will have control over his employees and also as to how they should do their work too. Due to some of the limitations of the â€Å"control test† a new test, â€Å"Integration test†, to be specific, was used in the case of Stevenson, Jordan Harrison Ltd v MacDonald and Evans (1952). According this test if the individuals who committed the tort were found to be working as an â€Å"integral part† of the business, then the employer migh t be held vicariously liable even if they are contractors for the business. The most recent test used to determine whether an individual is an employee or not, is the economic reality test. This test was used in the case of Mersey Docks and Harbour Board v Coggins and Griffith Ltd (1947), Ready Mixed  Concrete v Minister of Pensions (1968) and few more other cases. This test looks in to a much wider area than the previous tests. It looks in to aspects like control, ownership of the tools used in the work, chance of profits, and risks of loss as well. So this test considers a wider aspect before deciding on this matter. It should also be noted that usually the employers will not be held liable for the tort of any independent contractors, but there are some exceptions to this general rule. For example if the employer has authorized to commit a tort as in the case of Ellis v Sheffield Gas Consumers Co (1853) – where A gas company, not authorized to interfere with the streets of Sheffield,directed their contractor to open trenches therein. The contractor’s servant, in doing so, left a heap of stones, over which the plaintiff fell and was injured. It was held that the defendant company was liable, as the interference with the streets was in itself a wrongful act. Having being decided on the first two conditions (ie. Tort, Employee), the next and most complex of all to decide is whether the employee committed the tort during the course of employment. Due to the lack of consistence of the judgments by the courts on this matter it is regarded as the most problematic area. It is clear that the employer can be held liable if a wrongful act was done by the employee with the authorization of the employer. But the problem arises when the action committed was not authorized or when it is expressly prohibited by the employer. If the employer authorizes employees to do a particular task but the employees do the task they were asked to complete in an unauthorized way leading to a tort, it does not prevent employers from been held vicariously liable for the tort committed by employees. For example in the case of Century Insurance v Northern Ireland Transported Board (1942), despite the high degree of negligence by the petrol tank driver, it was decided he was acting in the course of his employment. Similarly, employees maybe held to be acting within the course of employment even when deliberately acting in a way that was expressly prohibited by his employer. In Rose v Plenty (1976) case, when the 13 year old was injured while riding with a milkman on his float to help him deliver milk, despite this was contrary to the employers  express prohibition, it was held to be within the course of employment because it was an improper way of doing exactly what the milkman was supposed to do. On the other hand in Twine v Beans Express (1946) a driver giving a lift in his delivery van to someone, contrary to instruction was held to be outside the course of employment, since the passenger was a trespasser and in no way of contributing to the purpose of the employment. Briefly discussed above are some of the circumstances where an employer can be held liable for the torts committed by his/her employees and sometimes for the torts of the contractors. But at this point someone might ask why someone else should be held liable for the wrongful act committed by a different person. Rest of this essay will focus on answering to this question. Some of the authors including Michael A.Jones(2000) has proposed some answers to this question. According to his book â€Å"Textbook on Torts† A. Jones said that, the employers have a deeper pocket when compared with that of his employees. So the employers will stand in a better position to pay a compensation for the plaintiff than his employees. Another reason he highlighted in his book is that, if the employees do their work properly it’s the employer who benefits and makes money out of it. Therefore the employers should also bear any loss caused by his employees too. Similarly some authors argue that, by making the employers vicariously liable for the tor of his/her employees it will give them a financial incentive to encourage their employees to take more care of the safety at work. It is because if the employees commit a tort it will be the employer who will have to bear the financial burden. So in placing this obligation up on the employer, they will be more motivated to instruct and remind employees to take more care and to take safety precautions at while at work. However, it should also be noted that, the Civil Liability(contribution) Act 1978 gives the right for the employers to recover the amount they spend on compensation the plaintiff, from his/her employees. In the case of Lister v Romford Ice and Cold Storage Co (1957), when dad was injured because of the van driven by his own son, father sued the company for the compensation. But  later on the company sued against the son and he was asked to pay the same amount which the company was asked to pay to his dad. In conclusion vicarious liability involves the employer being liable to a third party for the torts of his employee. There are 3 conditions which must be satisfied in vicarious liability: a relationship of employment between the tortfeasor and the defendant, the commission of a tort, and that it occur in the course of employment. Vicarious liability is not dependent on any fault of the employer and maybe imposed even in the case of an express prohibition or a criminal act. Vicarious liability does not remove the employees personal liability and it is possible, but unusual, for the employee to be called upon to indemnify his employer.

The Goods Service Tax In Malaysia

The Goods Service Tax In Malaysia IS THE INTRODUCTION OF THE GOODS SERVICE TAX (GST) IN MALAYSIA GOOD OR BAD? Chapter 1 1.0 INTRODUCTION. In the new global economy, more companies are operating cross border, and as such are faced with the need to deal effectively with many different taxes, often in many different countries, each with different rates, ruling and application. Coupled with this, the regulatory environment is increasingly challenging. The IMF has been trying to push for all countries to adopt the Goods Service Tax (GST), or also known in certain countries as Value Added Tax (VAT), so as to create a more level playing field amongst trading nations. Direct taxes have in the past been used to camouflage à ¢Ã¢â€š ¬Ã‹Å"protectionism policy of certain countries. High tariff on certain product like motorcar has prevented healthy competition amongst trading nations. The general populations of that country are left without a choice but to consume the local products, as imported products have become more expensive with the high tariff. Often, because of this, the local products tend to be inferior in quality as the re is no real incentive to compete. In the 2005 Budget, the Government of Malaysia announced that GST will be implemented on Jan 1 2007 to replace the current sales and service tax (SST). Following public outcry, on 22 February 2006 it announced a deferment to allow lead time to businesses for potential changes in processes, development of software and personnel training. The first reading of the GST Bill was tabled in December 2009 and the second and third reading is expected in April 2010. The Prime Minister recently announced that the increase in revenue expected from the introduction of GST will be used mainly to finance the hike in Civil Servants salary and to finance other infrastructure works for the benefit of the nation at large. Problem Statement Is GST really needed for Malaysia? If so, how does it affect the general public and the country as a whole? The aim of this paper is to discuss and bring to attention the problems which we might face with the implementation of the GST, or if we are to remain status quo with the SST. Chapter 2 Literature review The Ministry of Finance presented the following information to highlight on GST. It stated that it would be part of the overall tax reform to overcome the inherent weaknesses in the SST and to reduce the reliance on revenue from direct taxes and petroleum. GST is a more efficient and effective tax system as it is self policing and has an in-build cross checking features. It enhances tax compliance and deals with less bureaucracy. It is also a more stable source of revenue compared to income tax and less susceptible to economic downturn due to the consumption nature of the tax. The main types of taxes are direct and indirect taxes. Direct taxes are: Corporate Tax, Personal Income Tax, Real Property Gains Tax and Stamp duty whilst indirect taxes are Tariff (or Customs Duty), Excise Tax, SST (currently practiced in Malaysia) and GST. Contribution from petroleum revenue to total revenue increased from 29.1% (1990) to 40.1% (2008). The current high petroleum revenue is not sustainable as it is a depleting resource therefore and alternative source have to be sought. With the present average birth rate of 2.2, it is expected that by 2030, 12% of the population will be above 60 years old which almost double the current number. The working population paying taxes will therefore reduce, putting a greater burden on a smaller group of people. GST is a broad-based tax that distributes the burden of taxation among a larger section of the population based on consumption. GST preserve the incentive to work and encourages enterprise as it is not a progressive income tax. The tax rate does not increase according to income level; it is flat at the determined rate. It is levied at the production and distribution stages, thereby incorporating a self-policing mechanism that facilitates administration and makes it more difficult to avoid or evade. This further reduces the possibility of revenue loss through understatement of tax evasion. The GST model implemented in Malaysia is not expected to have cascading, or pyramiding, effect as the tax on a particular good depends upon its final value, and not the number of production and distribution channel it passes through. Furthermore, the output tax to be paid will be offset against the input tax, and there is no GST levied over GST. GST is expected to provide a more stable source of revenue as consumption is less affected by economic cycles compared to income tax. It can be an effective tax on the à ¢Ã¢â€š ¬Ã‹Å"shadow economy, as those involved would consume, and thus pay indirect taxes through GST. It is likely that those involved in such activities would buy luxury goods, which would be subjected to GST. The government is cutting its operating expenditure for 2010 by 13%. This shows it is aware of the growing deficit that has widened due to the stimulus package. Recently, Fitch rating agency has cut the rating of the ringgit, which may cause imported inflation if it depreciates, and the International Monetary Fund commented that the GST needs to be implemented urgently. Malaysias budget 2010 reports on GST; is that, it is currently at the final stage of completing the study on the implementation, where analysts are measuring the social impact of its presence in Malaysia. The Malaysian government said that it could be possible for them to implement this in the near future. Looking at Malaysia in a broader scale, GST will not only affect big businesses, but small and medium enterprises (SME) as well. Although there were nimble of past information saying that a food outlet can only charge GST if its annual turnover is above RM3 million (3,000,000 Ringgit Malaysia), the GST compliance requirements and thresholds has not been officially announced. If we were to take into account GSTs implementation into goods and services, we have to assume that it will happen to all stages of the supply chain; which means from the purchase of raw materials or start-up goods all the way to end-user (consumer ready) products available for sale. Ultimately in a product, GSTs charged to every level are passed on to the next person and ultimately, the consumer. A Tax Review Panel was formed in middle of 2005, and it has come out with a Discussion Paper intended for businesses to understand the basic administrative requirements and procedures when GST is implemented so that they know the impact of GST. Secondly, the Tax Review Panel invites the business community and other relevant organizations and associations to review the proposal in that paper. Thirdly, by having a public consultation, it provides an appropriate forum for both the public and private institutions to exchange views with members of the Tax Review Panel so as to understand the rationale behind the proposals initiated. The GST was supposed to be implemented in Malaysia in the year 2007; however the government has to defer the move due to critical reviews by certain quarters. After losing four States to the opposition, it has to tread on a careful path in order not to lose more public support. It cannot afford to make any more major mistake in the wake of its dismal performance in the last General Election. GST is generally known as a tax system which results in regressivity (i.e. people with less pay a greater share of their resources than those with more), in contrast with the ideal aim of progressivity which is generally sought when implementing a tax. It is sometimes argued that a GST system does not work in a poor region such as Africa, where most countries have heavy external debt burdens, malnutrition, civil wars and lack of food and medicines which often result in inhuman living conditions. Nevertheless, with the support of the IMF, VAT/GST systems were designed in many African countries to combat or at least alleviate the adverse effect of VAT/GST regressivity by having a list of exemptions and zero-ratings which apply (generally speaking) to basic foodstuffs and other basic necessities. GST is not always simple to administer, contrary to what the advocates of GST would want countries to believe during the transformation stage. Unless a proper GST administration, supported by modern technology and electronic communication systems can be implemented, GST administration will inevitably be costly for both the Revenue Authorities and the business sector. The output/input mechanism of the GST system, coupled with GST refunds, may provide the ideal opportunity for fraud where corrupt officials and unscrupulous businesses exploit weaknesses in the system. This again results in a defensive attitude from the Revenue Authorities, resulting in bad communication, cash flow and other GST cost. In 1992, a Free Trade Agreement (FTA) was signed which reduced import tariffs between ASEAN member countries. In the first three years of the FTA, exports amongst the ASEAN countries grew from US$43 billion to US$80 billion. In 1997, the leaders of ASEAN adopted the vision to build a stable, prosperous and highly competitive economic region, in which there is a free flow of goods, services and investments, a freer flow of capital, equitable economic development and reduced poverty and socio-economic disparities. The plan is to remove all tariffs for the six more developed countries by 2010 and for all countries by 2015. The summit also progressed the efforts to integrate ASEAN with the much larger economies of Asia- Pacific, specifically China, Japan, South Korea, India, Australia, and New Zealand. China signed a pact to introduce the worlds largest free trade zone by 2010, covering almost two billion people. Japan signed a similar agreement to take effect by 2012. India agreed to join in by 2011. Australia and New Zealand have agreed to talks starting next year to free up trade within a decade. The master plan is to have a free trade zone that can compete with the US and EU. In South East Asia, Malaysia remains one of the few countries yet to adopt the GST system, which would indirectly be in the way, if we want to be part of this master plan. In Malaysia, it was announced that essential goods and services will not be subjected to GST, but fears that GST will spark a chain reaction that will increase the prices of most non-controlled items should not be dismissed. We have seen numerous examples of when there is an increase in a certain commodity; it sparks a price rise in most goods and services. For example, when the petrol price increased to RM2.70, prices of most goods, foods and services were hiked. But after the petrol price dropped, there has not been a substantial correction in the prices of goods, food and services. The relevant ministries are powerless to mitigate the situation and curb the necessary inflation. A recent example is on the removal of the subsidy on white bread resulting in price increase of one loaf of bread by 20 to 30 cents. The Deputy Domestic Trade, Cooperative Consumer Affairs Minister can only comment that the price adjustment was not necessary, urge traders to practice corporate social responsibility and call on the consumers to execute their power in hand. All these statements will not effectively curb excessive profiteering and traders taking opportunity to increase the price of goods and service. The public would want to know how the government intends to avoid the similar predicament What is GST and how does it work? GST is a consumption tax charged on a wide range of domestic international products, goods and services. Its a broad-based tax imposed on every level of a product, from raw materials all the way to finished goods. The proposed implementation of GST will replace the current Malaysian service tax and sales tax. Broadly, GST works by offsetting GST paid on purchases (input tax) against GST due on sales or supplies made (output tax). This is referred to as the credit offset mechanism. The multi tier stages of tax helps to ensure that GST paid by businesses for purchases does not end up being a permanent cost. However, the consumer ultimately bears the burden of the tax. Conceptually, GST is imposed on the value added to goods or services by each separate processor in the production and distribution chain. This can be seen in the simple illustration below. GST to Government RM 4 + RM2 = RM6 (i.e. 4% x RM 100) i.e.4% x RM 150 = RM6 Output tax i.e. 4%x150 Less RM4 Input tax RM2 Net 4% is the assumed standard rate of GST. It is assumed that the entire output is taxable and all input taxes are creditable. FINAL CONSUMER Cost to consumer = RM 156 SUPPLIER Selling price = RM100 GST(4%) = RM 4 Total = RM 104 MANUFACTURER Cost = RM 100 Value added = RM 50 Total = RM 150 GST (4%) = RM 6 Total = RM 156 2.1 SOME CONCERN ABOUT THE INTRODUCTION OF GST. There were some concerns that Malaysians could suffer even more with the introduction of the Goods and Services Tax (GST). GST-driven inflation would be a calamity that the struggling lower-income group could do without. The GST Bill was tabled in Parliament at the end of the Budget sitting that ended on 17 December 2009. At its first reading, the bill was just mentioned, but there was no explanation of the bill or any debate. The second reading is when the bill is open for debate and proposed amendments. This may come as early as March 2010 for the GST Bill. Once approved, the new tax can be implemented as early as 2011. The table below lists the governments tax revenue for 2008 which contributed RM112.9 billion or 70 per cent of total government revenue. Government Tax Revenue in 2008 Personal Income Tax  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   RM 15.0 bil Company Tax  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   RM 37.7 bil Petroleum Tax  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   RM 24.2 bil Export and import duties  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   RM  Ãƒâ€šÃ‚   5.4 bil Excise duties  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   RM 10.7 bil Sales and Services Tax  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   RM 11.7 bil As shown in the table, the biggest source of tax revenue is company tax, which at 26 per cent of declared profits, currently brings in RM37.7 billion into government coffers. Petroleum tax makes up the second biggest tax item while the tax levied on the 1.5 million individuals who are now currently paying personal income taxes in Malaysia makes up the third biggest. All these taxes are deemed progressive for they tax the richest individuals and the companies that are making profits. Progressive taxes do not burden the poorer sectors of society. Progressive taxes tend to equal out income differences between the rich and the poor in society. It was argued that regressive tax regimes, on the other hand, burden the poor. Sales taxes are generally regressive as they tax consumption and not income. But sales tax in Malaysia has different rates for different types of goods and the government can make them less regressive by levying sales taxes exclusively on good that are consumed by the richer sectors of society such as expensive cars, big houses, overseas travel, expensive restaurants and other luxury items. The Goods and Services Tax, however, is perceived to be even more regressive for it is levied at a flat rate on a very wide range of products including many items that the poorer people need to buy. It might lead to a rise in prices and would definitely hit the poorest the hardest.   As in most countries with the GST in place, a reduction of corporate tax and personal tax will follow suit. This then, is seen as the real reason that the GST is being brought in à ¢Ã¢â€š ¬Ã¢â‚¬Å" to make Malaysia more business friendlyà ¢Ã¢â€š ¬? by cutting corporate tax (which has already been reduced markedly from the 40 per cent level in 1988 to its current 26 per cent). 2.2 LACK OF INFORMATION AND CONFUSION ON GST. The piecemeal release of information is creating great concern among the people and in the business sector. For example; Will the authorities furnish an extensive list of item that will be charged GST, and what will be exempted? If a product, like rice or chicken is exempted, does the exemption apply across the board regardless of the form of the product? For example, is cooked rice or cut, frozen or marinated chicken also exempted? What is the difference between exempt and zero-rated GST? Will there be any reduction in personal and corporate tax? What changes will be made to the sales and service tax? There is a perception that as GST is a multistage tax, it would result in higher effective tax rate than 4%. As GST is very technical, most people are unaware how it will impact them. When will the GST rate be reviewed? Recent media statement on its impact did not improve opinion on the introduction of GST. It is reported that under the sales and services tax system, the burden on the poor is 2.38%, but under the GST it will be 2.17%. For the higher income group, the tax burden will be reduced from 13% to 2.74%, according to the Finance Ministry. The overall savings for households will be between RM14.52 and RM346.92 yearly. This clearly contradicts other statement from politicians, and the public perception, that the GST will be inflationary. But as no further details are provided on how the savings are arrived at, public sentiment remains negative on GST. CHAPTER 3 EXPECTED IMPACT OF GST 3.1 Impact on the people in the street. The public is generally concerned that the introduction of GST will hit their wallets directly. In an initial assessment, as the GST is expected to be lower than service tax, the bill for a restaurant meal will be 1% lower as the service tax rate is 5% and GST is 4%. For other services liable to service tax, a GST rate lower than service tax should result in a slight decrease in charges if the cost of the other components in providing the service remain the same. On goods that attract sales tax, the current rate seems higher than the proposed GST, hence there might be a reduction if there is no further adjustment. Current rates are as follows; à ¢Ã¢â€š ¬Ã‚ ¢ Fruits, certain foodstuff and building materials (5%) à ¢Ã¢â€š ¬Ã‚ ¢ General goods, including motor vehicle (10%) à ¢Ã¢â€š ¬Ã‚ ¢ Liquor and alcoholic drinks (20%) à ¢Ã¢â€š ¬Ã‚ ¢ Cigarette and cheroots (25%) For hawkers; even though they do not have a turnover of RM500,000 yearly, so are not required collect GST, the material procured, for example, noodles, fish balls, processed meat, chicken, equipments for the stall may be subjected to GST, resulting in price hike. But without detailed knowledge or mapping, or even information on the duties charged, the people are uncertain whether the prices of goods and services will remain stagnant, increase or decrease. 3.2 IMPACT ON BUSINESSES. The implementation of GST is expected to impact business in the following manner: Compliance costs are expected to be incurred as there is requirement to track the input tax and output tax to determine refund or tax to be submitted. Even though some Malaysian companies are already paying sales tax or service tax, there was no input tax to be monitored and accounted for to offset against output tax. Business process and procurement need to be mapped out, especially with respect to suppliers and promotional items. For example, a new car attract GST, but items provided for free during promotion like sports rims or a GPS system à ¢Ã¢â€š ¬Ã¢â‚¬Å" may not be eligible for an input tax claim. Likewise the corporate souvenirs and hampers given out by businesses may not be eligible. The procurement department should start detailing the sales tax or the existing tax paid for their items used a raw material. As the GST is expected to be lower than most current indirect tax, there should be some potential cost savings. This is also to avoid being overcharged by supplier that intends to add the GST over the existing price of its supplies after sales tax, there should be some potential cost saving. Human resource factor: New staff may need to be employed to ensure a business is compliant and conversant with the GST requirement. As most staff have not been exposed to GST, training needs to be conducted. Accounting system and account payable: The business would require an appropriate accounting system to keep track of the GST amounts. Most systems could be upgraded, and it is important to notify software vendors to test run the data to avoid any potential complication. Cash flow management: Businesses should be aware that output GST may have to be settled before settlement of sales invoices by customer. Meanwhile, payables on which input tax has been claimed but remains unpaid after six months have to be accounted as output tax and are to be reclaimed as input tax only after payment is made. Businesses are concerned about the timeliness of the refund process as delays would results in a higher working capital cost. In addition, businesses that have thin margins are worried about the speed of the refund for input tax, especially if the business is mainly exported-oriented and procure its raw material locally. 3.3 OTHER IMPACTS: The expected impact on corporate and income taxes are as published in the news recently. Deputy Finance Minister Chor Chee Heung quoted that Malaysia will see a gradual reduction in its corporate and income tax rates once the proposed Goods and Services Tax (GST) is in place by mid-2011. He does not think that there was a timeline for achieving this reduction in corporate and income taxes, as this is a long-term objective of the government. Once the GST come into play, it will be a broad based tax and the trend is, once GST is implemented, corporate and income taxes will gradually be reduced. Chor also disclosed that businesses related to services such as those in the food and transportation sectors, would be exempted from the proposed GST. He gave assurance that the cost of living and lifestyle of the people would not increase or be affected with the implementation of a GST. He also added that the implementation of GST would not cause inflation. Once the GST is in, the service tax and sales tax (now imposed) would be abolished. Both taxes are quite high at 10 per cent and five per cent respectively. The GST at four per cent is considered very low. Meanwhile, the Finance Ministrys Tax Review Panel Chairman, Ms. Kamariah Hussain, said there would be revenue gains of about 1.0 Billion Ringgit for the government with the GST implementation. She explained that the introduction of the GST was part of an overall tax reform in the country. With the GST, the government would have a better mix of revenue, and not be too dependent on income tax and petroleum income. Second Finance Minister, Ahmad Husni Hanadzlah had indicated that while the GST would replace the existing sales and services taxes, it would not put pressure on prices and to ease the burden of consumers, staple foods such as rice, sugar, cooking oil and flour would be exempted from it. 3.3.1 IMPACT OF GST ON SMALL MEDIUM ENTERPRISE (SME). SMEs form the backbone of the business activities of a nation. Other than encouraging the growth of new industries such as tourism and biotechnology-based industries, the Government (2004 Budget Proposals) too has singled out SMEs to spearhead domestic growth. However, there is a group of à ¢Ã¢â€š ¬Ã‹Å"unhappy people representing non-governmental organizations (NGOs) and the public who have expressed their non-approval for the introduction of the proposed GST. Their main argument is that GST favours the rich and burdens the poor at large. Their contention is that it will burden the people and contribute to the widening gap between the rich and the poor, not to mention the rise in the inflation rateà ¢Ã¢â€š ¬?. However, tax practitioner, Beh Tok Koay is of the opinion that perhaps this small group lacks an understanding of the whole system of GST. It is supposed to be broadbased and will replace the service and sales tax system, and this in turn will help to reduce income tax ratesà ¢Ã¢â€š ¬?. There could be two GST rates: a lower rate for SMEs and a higher rate for large enterprises. Imposing two GST rates is, however, difficult to administer as they provide ample room for tax avoidance and increase compliance cost. Lowering the compliance cost of GST would ease the burden of SMEs. If there is convincing data to show that the compliance cost of SMEs are lower if the accounts are computerized, then the Government could provide software packages to the licensees to enable them to correctly compute GST. Free training and seminars including visits should be extended to SMEs to enable them to have a better understanding of the compliance requirements. One other option is to exempt small busine sses from GST altogether but such a decision too has its drawbacks. The Government has to analyze the revenue gain as compared to the compliance cost before making a decision to determine the threshold limit. With the two-year window period before GST is in force, all of us have a role to play in contributing towards the development of a better broad-based consumption tax system which ultimately would help reduce the rates of income tax. No doubt, everyone especially the SMEs will eagerly await the final introduction of the GST system and the extent of the expected income tax rate cuts. The business community, NGO and charity organization are concerned about the ability of the authorities to implement GST smoothly. Australia, for example, had to bring in foreign experts to help in rollout of GST. It would undermine investor confidence if the GST is not implemented in a structured manner with minimal hiccup. Burdening the poor and those economically vulnerable: Some 32% of the household in Malaysia have an income under RM2,000 per month. The introduction of GST without the necessary revamp of subsidies will result in a heavier financial burden on poor and low-income families. Families with an income below RM2,000 a month do not have to pay personal income tax. With GST, things that are not basic necessities toys, processed food, can food, packet drinks, and so on, could increase existing inflationary pressures. The ongoing restructuring of the subsidy will also create the tension, discomfort and dissatisfaction as people eligible for subsidy could unintentionally be left out as the government establishes and tries to refine its method of distribution. CHAPTER 4 4.0 CONCLUSION GST is unavoidable. It will just be a matter of time when it will be implemented. It may not be a perfect system, but has worked well as a revenue base for other countries. Malaysias problem may lie more in public education, implementation and enforcement. To move forward, Malaysia has to conform to the free trade vision of ASEAN and cannot lag behind the other countries. As of today, apart from Malaysia, only Myanmar and Brunei has yet to implement the GST. GST modernises the tax system by addressing tax evasion committed by free riders who want every benefit but refuse to pay for it, or rather have others to pay for them. GST will certainly be a good platform to increase the Governments revenue. Concerns of it being regressive can be overcome by careful and prudent classifications of zero rated supplies and exempt supplies for essential items as against standard supplies for non essential and luxury items. One good point of starting late is the ability to learn from the mistakes of others. The government has to be fully transparent in the implementation of the proposed GST. In this borderless world, news and knowledge cannot be curbed. The masses are getting more intelligent and informed. It will not be prudent for the government of the day not to move forward towards a more modern tax system. Rather than blind opposition, critics should provide examples and lessons learnt from the weaknesses of other nations in the implementation of GST or VAT. However, based from past experience, the skeptism voiced is understandable. We have heard of past Auditor General Reports on the wastage and the leakage of public funds into the pockets of the well connected; of RM 25 screw drivers being bought through tender at a price of RM200; commissions running into millions of ringgit for the purchase of Sukhov jets and submarines; and billions swallowed in the PKFZ scandal. The sums involved are astronomical. Then we have newly built hospitals that cannot be used, court room complexes with leaked ceilings and stadium roofs that collapsed in the absence of even a small earthquake. So, whether the GST will finally proved to be good or bad for the country will remain a question mark until its actual implementation. The actual salary increase as promised by the government might not be the expected pot of gold at the end of the rainbow if the GST is not properly implemented. The Goods Service Tax In Malaysia The Goods Service Tax In Malaysia IS THE INTRODUCTION OF THE GOODS SERVICE TAX (GST) IN MALAYSIA GOOD OR BAD? Chapter 1 1.0 INTRODUCTION. In the new global economy, more companies are operating cross border, and as such are faced with the need to deal effectively with many different taxes, often in many different countries, each with different rates, ruling and application. Coupled with this, the regulatory environment is increasingly challenging. The IMF has been trying to push for all countries to adopt the Goods Service Tax (GST), or also known in certain countries as Value Added Tax (VAT), so as to create a more level playing field amongst trading nations. Direct taxes have in the past been used to camouflage à ¢Ã¢â€š ¬Ã‹Å"protectionism policy of certain countries. High tariff on certain product like motorcar has prevented healthy competition amongst trading nations. The general populations of that country are left without a choice but to consume the local products, as imported products have become more expensive with the high tariff. Often, because of this, the local products tend to be inferior in quality as the re is no real incentive to compete. In the 2005 Budget, the Government of Malaysia announced that GST will be implemented on Jan 1 2007 to replace the current sales and service tax (SST). Following public outcry, on 22 February 2006 it announced a deferment to allow lead time to businesses for potential changes in processes, development of software and personnel training. The first reading of the GST Bill was tabled in December 2009 and the second and third reading is expected in April 2010. The Prime Minister recently announced that the increase in revenue expected from the introduction of GST will be used mainly to finance the hike in Civil Servants salary and to finance other infrastructure works for the benefit of the nation at large. Problem Statement Is GST really needed for Malaysia? If so, how does it affect the general public and the country as a whole? The aim of this paper is to discuss and bring to attention the problems which we might face with the implementation of the GST, or if we are to remain status quo with the SST. Chapter 2 Literature review The Ministry of Finance presented the following information to highlight on GST. It stated that it would be part of the overall tax reform to overcome the inherent weaknesses in the SST and to reduce the reliance on revenue from direct taxes and petroleum. GST is a more efficient and effective tax system as it is self policing and has an in-build cross checking features. It enhances tax compliance and deals with less bureaucracy. It is also a more stable source of revenue compared to income tax and less susceptible to economic downturn due to the consumption nature of the tax. The main types of taxes are direct and indirect taxes. Direct taxes are: Corporate Tax, Personal Income Tax, Real Property Gains Tax and Stamp duty whilst indirect taxes are Tariff (or Customs Duty), Excise Tax, SST (currently practiced in Malaysia) and GST. Contribution from petroleum revenue to total revenue increased from 29.1% (1990) to 40.1% (2008). The current high petroleum revenue is not sustainable as it is a depleting resource therefore and alternative source have to be sought. With the present average birth rate of 2.2, it is expected that by 2030, 12% of the population will be above 60 years old which almost double the current number. The working population paying taxes will therefore reduce, putting a greater burden on a smaller group of people. GST is a broad-based tax that distributes the burden of taxation among a larger section of the population based on consumption. GST preserve the incentive to work and encourages enterprise as it is not a progressive income tax. The tax rate does not increase according to income level; it is flat at the determined rate. It is levied at the production and distribution stages, thereby incorporating a self-policing mechanism that facilitates administration and makes it more difficult to avoid or evade. This further reduces the possibility of revenue loss through understatement of tax evasion. The GST model implemented in Malaysia is not expected to have cascading, or pyramiding, effect as the tax on a particular good depends upon its final value, and not the number of production and distribution channel it passes through. Furthermore, the output tax to be paid will be offset against the input tax, and there is no GST levied over GST. GST is expected to provide a more stable source of revenue as consumption is less affected by economic cycles compared to income tax. It can be an effective tax on the à ¢Ã¢â€š ¬Ã‹Å"shadow economy, as those involved would consume, and thus pay indirect taxes through GST. It is likely that those involved in such activities would buy luxury goods, which would be subjected to GST. The government is cutting its operating expenditure for 2010 by 13%. This shows it is aware of the growing deficit that has widened due to the stimulus package. Recently, Fitch rating agency has cut the rating of the ringgit, which may cause imported inflation if it depreciates, and the International Monetary Fund commented that the GST needs to be implemented urgently. Malaysias budget 2010 reports on GST; is that, it is currently at the final stage of completing the study on the implementation, where analysts are measuring the social impact of its presence in Malaysia. The Malaysian government said that it could be possible for them to implement this in the near future. Looking at Malaysia in a broader scale, GST will not only affect big businesses, but small and medium enterprises (SME) as well. Although there were nimble of past information saying that a food outlet can only charge GST if its annual turnover is above RM3 million (3,000,000 Ringgit Malaysia), the GST compliance requirements and thresholds has not been officially announced. If we were to take into account GSTs implementation into goods and services, we have to assume that it will happen to all stages of the supply chain; which means from the purchase of raw materials or start-up goods all the way to end-user (consumer ready) products available for sale. Ultimately in a product, GSTs charged to every level are passed on to the next person and ultimately, the consumer. A Tax Review Panel was formed in middle of 2005, and it has come out with a Discussion Paper intended for businesses to understand the basic administrative requirements and procedures when GST is implemented so that they know the impact of GST. Secondly, the Tax Review Panel invites the business community and other relevant organizations and associations to review the proposal in that paper. Thirdly, by having a public consultation, it provides an appropriate forum for both the public and private institutions to exchange views with members of the Tax Review Panel so as to understand the rationale behind the proposals initiated. The GST was supposed to be implemented in Malaysia in the year 2007; however the government has to defer the move due to critical reviews by certain quarters. After losing four States to the opposition, it has to tread on a careful path in order not to lose more public support. It cannot afford to make any more major mistake in the wake of its dismal performance in the last General Election. GST is generally known as a tax system which results in regressivity (i.e. people with less pay a greater share of their resources than those with more), in contrast with the ideal aim of progressivity which is generally sought when implementing a tax. It is sometimes argued that a GST system does not work in a poor region such as Africa, where most countries have heavy external debt burdens, malnutrition, civil wars and lack of food and medicines which often result in inhuman living conditions. Nevertheless, with the support of the IMF, VAT/GST systems were designed in many African countries to combat or at least alleviate the adverse effect of VAT/GST regressivity by having a list of exemptions and zero-ratings which apply (generally speaking) to basic foodstuffs and other basic necessities. GST is not always simple to administer, contrary to what the advocates of GST would want countries to believe during the transformation stage. Unless a proper GST administration, supported by modern technology and electronic communication systems can be implemented, GST administration will inevitably be costly for both the Revenue Authorities and the business sector. The output/input mechanism of the GST system, coupled with GST refunds, may provide the ideal opportunity for fraud where corrupt officials and unscrupulous businesses exploit weaknesses in the system. This again results in a defensive attitude from the Revenue Authorities, resulting in bad communication, cash flow and other GST cost. In 1992, a Free Trade Agreement (FTA) was signed which reduced import tariffs between ASEAN member countries. In the first three years of the FTA, exports amongst the ASEAN countries grew from US$43 billion to US$80 billion. In 1997, the leaders of ASEAN adopted the vision to build a stable, prosperous and highly competitive economic region, in which there is a free flow of goods, services and investments, a freer flow of capital, equitable economic development and reduced poverty and socio-economic disparities. The plan is to remove all tariffs for the six more developed countries by 2010 and for all countries by 2015. The summit also progressed the efforts to integrate ASEAN with the much larger economies of Asia- Pacific, specifically China, Japan, South Korea, India, Australia, and New Zealand. China signed a pact to introduce the worlds largest free trade zone by 2010, covering almost two billion people. Japan signed a similar agreement to take effect by 2012. India agreed to join in by 2011. Australia and New Zealand have agreed to talks starting next year to free up trade within a decade. The master plan is to have a free trade zone that can compete with the US and EU. In South East Asia, Malaysia remains one of the few countries yet to adopt the GST system, which would indirectly be in the way, if we want to be part of this master plan. In Malaysia, it was announced that essential goods and services will not be subjected to GST, but fears that GST will spark a chain reaction that will increase the prices of most non-controlled items should not be dismissed. We have seen numerous examples of when there is an increase in a certain commodity; it sparks a price rise in most goods and services. For example, when the petrol price increased to RM2.70, prices of most goods, foods and services were hiked. But after the petrol price dropped, there has not been a substantial correction in the prices of goods, food and services. The relevant ministries are powerless to mitigate the situation and curb the necessary inflation. A recent example is on the removal of the subsidy on white bread resulting in price increase of one loaf of bread by 20 to 30 cents. The Deputy Domestic Trade, Cooperative Consumer Affairs Minister can only comment that the price adjustment was not necessary, urge traders to practice corporate social responsibility and call on the consumers to execute their power in hand. All these statements will not effectively curb excessive profiteering and traders taking opportunity to increase the price of goods and service. The public would want to know how the government intends to avoid the similar predicament What is GST and how does it work? GST is a consumption tax charged on a wide range of domestic international products, goods and services. Its a broad-based tax imposed on every level of a product, from raw materials all the way to finished goods. The proposed implementation of GST will replace the current Malaysian service tax and sales tax. Broadly, GST works by offsetting GST paid on purchases (input tax) against GST due on sales or supplies made (output tax). This is referred to as the credit offset mechanism. The multi tier stages of tax helps to ensure that GST paid by businesses for purchases does not end up being a permanent cost. However, the consumer ultimately bears the burden of the tax. Conceptually, GST is imposed on the value added to goods or services by each separate processor in the production and distribution chain. This can be seen in the simple illustration below. GST to Government RM 4 + RM2 = RM6 (i.e. 4% x RM 100) i.e.4% x RM 150 = RM6 Output tax i.e. 4%x150 Less RM4 Input tax RM2 Net 4% is the assumed standard rate of GST. It is assumed that the entire output is taxable and all input taxes are creditable. FINAL CONSUMER Cost to consumer = RM 156 SUPPLIER Selling price = RM100 GST(4%) = RM 4 Total = RM 104 MANUFACTURER Cost = RM 100 Value added = RM 50 Total = RM 150 GST (4%) = RM 6 Total = RM 156 2.1 SOME CONCERN ABOUT THE INTRODUCTION OF GST. There were some concerns that Malaysians could suffer even more with the introduction of the Goods and Services Tax (GST). GST-driven inflation would be a calamity that the struggling lower-income group could do without. The GST Bill was tabled in Parliament at the end of the Budget sitting that ended on 17 December 2009. At its first reading, the bill was just mentioned, but there was no explanation of the bill or any debate. The second reading is when the bill is open for debate and proposed amendments. This may come as early as March 2010 for the GST Bill. Once approved, the new tax can be implemented as early as 2011. The table below lists the governments tax revenue for 2008 which contributed RM112.9 billion or 70 per cent of total government revenue. Government Tax Revenue in 2008 Personal Income Tax  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   RM 15.0 bil Company Tax  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   RM 37.7 bil Petroleum Tax  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   RM 24.2 bil Export and import duties  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   RM  Ãƒâ€šÃ‚   5.4 bil Excise duties  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   RM 10.7 bil Sales and Services Tax  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   RM 11.7 bil As shown in the table, the biggest source of tax revenue is company tax, which at 26 per cent of declared profits, currently brings in RM37.7 billion into government coffers. Petroleum tax makes up the second biggest tax item while the tax levied on the 1.5 million individuals who are now currently paying personal income taxes in Malaysia makes up the third biggest. All these taxes are deemed progressive for they tax the richest individuals and the companies that are making profits. Progressive taxes do not burden the poorer sectors of society. Progressive taxes tend to equal out income differences between the rich and the poor in society. It was argued that regressive tax regimes, on the other hand, burden the poor. Sales taxes are generally regressive as they tax consumption and not income. But sales tax in Malaysia has different rates for different types of goods and the government can make them less regressive by levying sales taxes exclusively on good that are consumed by the richer sectors of society such as expensive cars, big houses, overseas travel, expensive restaurants and other luxury items. The Goods and Services Tax, however, is perceived to be even more regressive for it is levied at a flat rate on a very wide range of products including many items that the poorer people need to buy. It might lead to a rise in prices and would definitely hit the poorest the hardest.   As in most countries with the GST in place, a reduction of corporate tax and personal tax will follow suit. This then, is seen as the real reason that the GST is being brought in à ¢Ã¢â€š ¬Ã¢â‚¬Å" to make Malaysia more business friendlyà ¢Ã¢â€š ¬? by cutting corporate tax (which has already been reduced markedly from the 40 per cent level in 1988 to its current 26 per cent). 2.2 LACK OF INFORMATION AND CONFUSION ON GST. The piecemeal release of information is creating great concern among the people and in the business sector. For example; Will the authorities furnish an extensive list of item that will be charged GST, and what will be exempted? If a product, like rice or chicken is exempted, does the exemption apply across the board regardless of the form of the product? For example, is cooked rice or cut, frozen or marinated chicken also exempted? What is the difference between exempt and zero-rated GST? Will there be any reduction in personal and corporate tax? What changes will be made to the sales and service tax? There is a perception that as GST is a multistage tax, it would result in higher effective tax rate than 4%. As GST is very technical, most people are unaware how it will impact them. When will the GST rate be reviewed? Recent media statement on its impact did not improve opinion on the introduction of GST. It is reported that under the sales and services tax system, the burden on the poor is 2.38%, but under the GST it will be 2.17%. For the higher income group, the tax burden will be reduced from 13% to 2.74%, according to the Finance Ministry. The overall savings for households will be between RM14.52 and RM346.92 yearly. This clearly contradicts other statement from politicians, and the public perception, that the GST will be inflationary. But as no further details are provided on how the savings are arrived at, public sentiment remains negative on GST. CHAPTER 3 EXPECTED IMPACT OF GST 3.1 Impact on the people in the street. The public is generally concerned that the introduction of GST will hit their wallets directly. In an initial assessment, as the GST is expected to be lower than service tax, the bill for a restaurant meal will be 1% lower as the service tax rate is 5% and GST is 4%. For other services liable to service tax, a GST rate lower than service tax should result in a slight decrease in charges if the cost of the other components in providing the service remain the same. On goods that attract sales tax, the current rate seems higher than the proposed GST, hence there might be a reduction if there is no further adjustment. Current rates are as follows; à ¢Ã¢â€š ¬Ã‚ ¢ Fruits, certain foodstuff and building materials (5%) à ¢Ã¢â€š ¬Ã‚ ¢ General goods, including motor vehicle (10%) à ¢Ã¢â€š ¬Ã‚ ¢ Liquor and alcoholic drinks (20%) à ¢Ã¢â€š ¬Ã‚ ¢ Cigarette and cheroots (25%) For hawkers; even though they do not have a turnover of RM500,000 yearly, so are not required collect GST, the material procured, for example, noodles, fish balls, processed meat, chicken, equipments for the stall may be subjected to GST, resulting in price hike. But without detailed knowledge or mapping, or even information on the duties charged, the people are uncertain whether the prices of goods and services will remain stagnant, increase or decrease. 3.2 IMPACT ON BUSINESSES. The implementation of GST is expected to impact business in the following manner: Compliance costs are expected to be incurred as there is requirement to track the input tax and output tax to determine refund or tax to be submitted. Even though some Malaysian companies are already paying sales tax or service tax, there was no input tax to be monitored and accounted for to offset against output tax. Business process and procurement need to be mapped out, especially with respect to suppliers and promotional items. For example, a new car attract GST, but items provided for free during promotion like sports rims or a GPS system à ¢Ã¢â€š ¬Ã¢â‚¬Å" may not be eligible for an input tax claim. Likewise the corporate souvenirs and hampers given out by businesses may not be eligible. The procurement department should start detailing the sales tax or the existing tax paid for their items used a raw material. As the GST is expected to be lower than most current indirect tax, there should be some potential cost savings. This is also to avoid being overcharged by supplier that intends to add the GST over the existing price of its supplies after sales tax, there should be some potential cost saving. Human resource factor: New staff may need to be employed to ensure a business is compliant and conversant with the GST requirement. As most staff have not been exposed to GST, training needs to be conducted. Accounting system and account payable: The business would require an appropriate accounting system to keep track of the GST amounts. Most systems could be upgraded, and it is important to notify software vendors to test run the data to avoid any potential complication. Cash flow management: Businesses should be aware that output GST may have to be settled before settlement of sales invoices by customer. Meanwhile, payables on which input tax has been claimed but remains unpaid after six months have to be accounted as output tax and are to be reclaimed as input tax only after payment is made. Businesses are concerned about the timeliness of the refund process as delays would results in a higher working capital cost. In addition, businesses that have thin margins are worried about the speed of the refund for input tax, especially if the business is mainly exported-oriented and procure its raw material locally. 3.3 OTHER IMPACTS: The expected impact on corporate and income taxes are as published in the news recently. Deputy Finance Minister Chor Chee Heung quoted that Malaysia will see a gradual reduction in its corporate and income tax rates once the proposed Goods and Services Tax (GST) is in place by mid-2011. He does not think that there was a timeline for achieving this reduction in corporate and income taxes, as this is a long-term objective of the government. Once the GST come into play, it will be a broad based tax and the trend is, once GST is implemented, corporate and income taxes will gradually be reduced. Chor also disclosed that businesses related to services such as those in the food and transportation sectors, would be exempted from the proposed GST. He gave assurance that the cost of living and lifestyle of the people would not increase or be affected with the implementation of a GST. He also added that the implementation of GST would not cause inflation. Once the GST is in, the service tax and sales tax (now imposed) would be abolished. Both taxes are quite high at 10 per cent and five per cent respectively. The GST at four per cent is considered very low. Meanwhile, the Finance Ministrys Tax Review Panel Chairman, Ms. Kamariah Hussain, said there would be revenue gains of about 1.0 Billion Ringgit for the government with the GST implementation. She explained that the introduction of the GST was part of an overall tax reform in the country. With the GST, the government would have a better mix of revenue, and not be too dependent on income tax and petroleum income. Second Finance Minister, Ahmad Husni Hanadzlah had indicated that while the GST would replace the existing sales and services taxes, it would not put pressure on prices and to ease the burden of consumers, staple foods such as rice, sugar, cooking oil and flour would be exempted from it. 3.3.1 IMPACT OF GST ON SMALL MEDIUM ENTERPRISE (SME). SMEs form the backbone of the business activities of a nation. Other than encouraging the growth of new industries such as tourism and biotechnology-based industries, the Government (2004 Budget Proposals) too has singled out SMEs to spearhead domestic growth. However, there is a group of à ¢Ã¢â€š ¬Ã‹Å"unhappy people representing non-governmental organizations (NGOs) and the public who have expressed their non-approval for the introduction of the proposed GST. Their main argument is that GST favours the rich and burdens the poor at large. Their contention is that it will burden the people and contribute to the widening gap between the rich and the poor, not to mention the rise in the inflation rateà ¢Ã¢â€š ¬?. However, tax practitioner, Beh Tok Koay is of the opinion that perhaps this small group lacks an understanding of the whole system of GST. It is supposed to be broadbased and will replace the service and sales tax system, and this in turn will help to reduce income tax ratesà ¢Ã¢â€š ¬?. There could be two GST rates: a lower rate for SMEs and a higher rate for large enterprises. Imposing two GST rates is, however, difficult to administer as they provide ample room for tax avoidance and increase compliance cost. Lowering the compliance cost of GST would ease the burden of SMEs. If there is convincing data to show that the compliance cost of SMEs are lower if the accounts are computerized, then the Government could provide software packages to the licensees to enable them to correctly compute GST. Free training and seminars including visits should be extended to SMEs to enable them to have a better understanding of the compliance requirements. One other option is to exempt small busine sses from GST altogether but such a decision too has its drawbacks. The Government has to analyze the revenue gain as compared to the compliance cost before making a decision to determine the threshold limit. With the two-year window period before GST is in force, all of us have a role to play in contributing towards the development of a better broad-based consumption tax system which ultimately would help reduce the rates of income tax. No doubt, everyone especially the SMEs will eagerly await the final introduction of the GST system and the extent of the expected income tax rate cuts. The business community, NGO and charity organization are concerned about the ability of the authorities to implement GST smoothly. Australia, for example, had to bring in foreign experts to help in rollout of GST. It would undermine investor confidence if the GST is not implemented in a structured manner with minimal hiccup. Burdening the poor and those economically vulnerable: Some 32% of the household in Malaysia have an income under RM2,000 per month. The introduction of GST without the necessary revamp of subsidies will result in a heavier financial burden on poor and low-income families. Families with an income below RM2,000 a month do not have to pay personal income tax. With GST, things that are not basic necessities toys, processed food, can food, packet drinks, and so on, could increase existing inflationary pressures. The ongoing restructuring of the subsidy will also create the tension, discomfort and dissatisfaction as people eligible for subsidy could unintentionally be left out as the government establishes and tries to refine its method of distribution. CHAPTER 4 4.0 CONCLUSION GST is unavoidable. It will just be a matter of time when it will be implemented. It may not be a perfect system, but has worked well as a revenue base for other countries. Malaysias problem may lie more in public education, implementation and enforcement. To move forward, Malaysia has to conform to the free trade vision of ASEAN and cannot lag behind the other countries. As of today, apart from Malaysia, only Myanmar and Brunei has yet to implement the GST. GST modernises the tax system by addressing tax evasion committed by free riders who want every benefit but refuse to pay for it, or rather have others to pay for them. GST will certainly be a good platform to increase the Governments revenue. Concerns of it being regressive can be overcome by careful and prudent classifications of zero rated supplies and exempt supplies for essential items as against standard supplies for non essential and luxury items. One good point of starting late is the ability to learn from the mistakes of others. The government has to be fully transparent in the implementation of the proposed GST. In this borderless world, news and knowledge cannot be curbed. The masses are getting more intelligent and informed. It will not be prudent for the government of the day not to move forward towards a more modern tax system. Rather than blind opposition, critics should provide examples and lessons learnt from the weaknesses of other nations in the implementation of GST or VAT. However, based from past experience, the skeptism voiced is understandable. We have heard of past Auditor General Reports on the wastage and the leakage of public funds into the pockets of the well connected; of RM 25 screw drivers being bought through tender at a price of RM200; commissions running into millions of ringgit for the purchase of Sukhov jets and submarines; and billions swallowed in the PKFZ scandal. The sums involved are astronomical. Then we have newly built hospitals that cannot be used, court room complexes with leaked ceilings and stadium roofs that collapsed in the absence of even a small earthquake. So, whether the GST will finally proved to be good or bad for the country will remain a question mark until its actual implementation. The actual salary increase as promised by the government might not be the expected pot of gold at the end of the rainbow if the GST is not properly implemented.