Finance and financial system

Forty million credit cards hacked
BNE: What is your worst nightmare? How about opening your credit card statement and seeing thousands of dollars’ worth of purchases you never made? This is a possibility for 40 million credit cardholders worldwide following a security breach at a major data processing center. U.S.-based Card Systems Solutions Inc., which processes transactions for banks and merchants around the globe, has issued a press release* saying it “identified a potential security incident” in May.
Hackers infiltrated the system and made off with the personal details of up to 40 million people – the same number as the entire population of Spain. Card Systems immediately contacted the Federal Bureau of Investigation, which in turn notified VISA and MasterCard. The company said it is currently “completing the installation of enhanced/additional security procedures”. Meanwhile, the world’s banks are working overtime changing the account details of concerned and irate cardholders
Card Systems Inc. expressed sympathy with anyone who may have lost confidence in the integrity of credit card security or suffered anguish as a result of the breach. It said: “We understand and fully appreciate the seriousness of the situation.” It also assured the business world its primary focus was client oriented. The press release said: “Our customers and their customers are our lifeblood. We are sparing no effort to get to the bottom of this matter.”

WHAT IS TAXATION?
Taxes are a compulsory financial contribution by a person or body of persons towards the expenditure of a public authority. In modern economies taxes are the most important source of government revenues. Taxes on income (i.e., on wages, salaries, profits, dividends, rent and interest) and on capital are known as “direct” taxes. Taxes on Commodities or services are known as “indirect” taxes.
Businesses and individuals are subject to many forms of taxes. The various forms of business organization are not taxed equally. The tax situation is simplest for proprietorships and most partnerships; corporations or companies are treated differently.
In the United States of America nearly all of the federal government’s revenues come from taxes. By far the most important source of tax revenue is the personal income tax. Gross receipts from corporate income taxes yield a far smaller percentage of total federal receipts. Individual states levy their own taxes. As a result, for example, the profits of a corporation are liable to federal and sometimes state corporate income taxes. This often imposes a double tax burden. When the after–tax income is paid out to stock–holders as dividends, it is then taxed again as personal income.
In the United Kingdom there is no single code of tax law, the body of tax legislation being increased by each year’s Finance Act.
The United Kingdom operates a “scheduler” system, taxable income from different sources is calculated and taxed under the rules of a particular "schedule".
Tax assessments are normally based on returns issued by the Board, of Inland Revenue (referred to simply as “Inland Revenue”) completion by the taxpayer. While companies may receive tax return, they normally submit instead a copy of their annual accounts together with a computation of taxable profits.
The United Kingdom does not yet operate a system of self-assessment for tax on income and capital gains, but it is be; introduced at the moment.
Under Russian law, all Russian legal entities, whether they have foreign investment or not, are subject to the profit tax law. Foreign entities that have a taxable permanent establishment in Russia are also taxed under this law.
Russian taxes provide revenue for three tiers of the budget: federal, regional and local. The major taxes paid to the budget are: Profit tax–Value–added tax (VAT); Securities tax; Withholding tax.
The Russian government tries to create a climate in which business can thrive, to keep the tax burden as low as possible. It also attempts to eliminate tax allowances, which deprive the budget of tax revenues, and to improve tax collection.
Tax returns for Russian legal entities are audited by the authorities at the time they are submitted.
When a company resident in one country receives income or from a source in another, or when shareholders and company domiciled in different countries it is possible that incomes arising be taxable in each country, i.e., taxed twice. Many countries seek to mitigate the potentially harmful effects of double taxation by entering with other countries into double tax treaties, or arrangement preventing the same income being taxed twice.
A number of countries have problems because of significant taxpayer non-compliance.
Along with cases of illegal evasion of tax obligations there entirely legal ways of avoidance by which a person may so arrange his affairs as to minimize, or even eliminate, tax liability on his property and income.