Daily Archives: September 4, 2018

Fraudulent CAs Problematic In India

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During India’s recent tax filing season, chartered accountant insurance was in demand, thanks to the common phenomenon of conmen masquerading as chartered accountants. These so-called CAs falsified taxpayer income returns for their clients which resulted in large refunds, ranging from Rs50,000(about USD 712) to Rs 2 lakh (about USD 2,851).

These fraudulent CAs got refunds for their customers by understating their taxable income, or by claiming certain tax deductions and exemptions. This task is made easy by the fact that deductions or exemptions claimed in an income tax return require no supporting documentation. A Mumbai-based CA explained, saying that one can claim deductions for medical insurance, education loan, or even deductions for disability of self or dependent without needing to verify their claims with any evidence. In exchange, these fake CAs take a cut of the refunds, getting a share of about 10-15%.

Thousands of taxpayers in the country used these illegal channels to file their income returns and claim refunds. All a taxpayer really needs to do is to get and provide the Form 16, alongside the Aadhar, and the bank account number, and their return will already be set.These fake CAs take about a week to work, utilizing their knowledge of the Indian tax filing system to get by the book.

Tax experts in the country, however, have warned that the discrepancy put up by these people will likely be detected when the return is put up for assessment. Until recently, tax deducted at source (TDS) information found in their Form 26AS can be used to match up the numbers with the tax declared in the return. CFO Sudhir Kaushik, Taxspanner.com, says that the tax department has altered their methods, with the process now involving a check of the Form 16 to match it with the income declared in the return, which is why it’s best to have chartered accountant insurance and go through legitimate channels.

Chartered Accountant and Managing Director Raj Khosla, MyMoneyMantra.com, says that if the assessing officer smells deliberate intent in income misreporting, they can slap a fine, as well as start the prosecution of the taxpayer.

If a taxpayer has knowingly claimed a deduction or exemption and does not have proper documentation to back it up, the it is considered an infraction; tax concealment, which has a 200% penalty.

 

Tencent Partners With New Video Game Company

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Tencent, China-based video game giant, add yet another partnership to its long list of video game companies. These are the same companies that bring games cheap games without compromising the quality. For those playing Final Fantasy and Tomb Raider, you might know about Square Enix which is the video game developer. They are now a part of Tencent through a strategic alliance. There are no specific details regarding the deal between Tencent Holdings Ltd and Square Enix but they are going to develop AAA games which will be derived from the existing ones that are under the licensing and the intellectual properties of the companies.

Tencent Group’s senior vice president, Steven Ma, said that the partnership will make it possible for the companies to offer customers with content experiences the likes they have never seen before on an international level. They are going to make use of the creativity of the Square Enix Group and the internet service capabilities that Tencent have in order to accomplish their goals.

This is not the first time that Tencentpartnered with another video game company. There is a long list in the industry which further fuels the success of the China-based tech firm. In the last few years, Tencentwas recognized as the largest gaming company in the globe – a fact unknown to many players of their games.

In fact, it has 40 per cent shares of Epic Games which is responsible for developing Fortnite, a video game that is predicted to earn around $2 billion when the year ends. Tencent is also associated with Ubisoft after it purchased 5 per cent of the stake in order to fight the takeover plan of Vivendi. The French publisher will now be able to access the Chinese market through the alliance.

Activision is now owned once more by Bobby Kotick because of the help of Tencent. The company bought 5 per cent of the stake and introduced Call of Duty Online to the Chinese market as a free game. In order to create quality, popular and cheap games, Tencent also partnered with Riot Games after owning majority of its shares. The company is known to be the maker of League of Legends.

Fast Fashion As Large Contributor To Environmental Problem

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The holiday season is a time for many to don their favorite sweaters and get cozy. But experts say that the rising popularity of these holiday-themed sweaters is causing us some serious environmental impacts.

Fast Fashion

It seems that every year, ugly xmas sweater competitions and parties are starting to become more and more popular. It is a festive occasion for many to unwind and have fun, but research has shown that most people only wear their xmas sweater once, only to be disposed or stashed away afterwards.

In a survey in the UK, 24% out of more than 3,000 respondents say that they do not want to be seen wearing the same sweater that they wore the previous year, and 29% say that they get a new one every year because of the cheap prices. This puts one in every four sweaters to be thrown away or never worn again. Additionally, 35% explained that since they only wore the sweaters once, these are often good as new.

Experts explain that it results to some clothes that are still in good condition to be thrown away. The cumulative effect of these wastes can fill up landfills and generates 1.2 billion tons of greenhouse emissions every year.

Throwaway Culture

Researchers further explain that people should reflect on this throwaway culture and how it affects the environment. Sarah Divall from Hubbub, an environmental charity organization, explains that it is a sign of our addiction to fast fashion— cheap clothes that people only wear once and disposed simply because buying new ones is cheap. She and the rest of the organization encourage people to swap or donate these sweaters instead of throwing them away.

Environmental Impact

The environmental impact of fast fashion is a serious matter. The industry is considered one of the major factors in depleting non-renewable resources, using massive amounts of energy, water, and chemicals. The process also emits a large quantity of greenhouse gases, which aggravate the overall environmental condition of the planet. Polyester, acrylic, and nylon, which are synthetic fibers often used in fast fashion also take thousands of years to decay, causing a huge problem in pollution.

Washing clothes made with synthetic fibers is also discovered to be harmful. In a 2011 study, researchers found out that a single piece of synthetic clothing can produce up to 1,900 micro plastic fibers in one washing alone.