Difference between gross federal debt and federal debt held by the public. Concept Introduction: Public debt is the amount of debt owed by a sovereign government to its creditors. When a country wants to raise money, the primary resource available is for the country to issue debt securities to the public. Public debt securities are items such as Treasury notes, Treasury bills and long-term Treasury bonds. Public debt securities issued by the government can be held by domestic or foreign interests, and the government has an obligation to repay the debt securities when they mature.

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Chapter 12, Problem 3.7P

To determine

Difference between gross federal debt and federal debt held by the public.

Concept Introduction: Public debt is the amount of debt owed by a sovereign government to its creditors. When a country wants to raise money, the primary resource available is for the country to issue debt securities to the public. Public debt securities are items such as Treasury notes, Treasury bills and long-term Treasury bonds. Public debt securities issued by the government can be held by domestic or foreign interests, and the government has an obligation to repay the debt securities when they mature.

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Discuss the preferred deterrent method employed by the Zambian government to combat tax evasion, monetary fines. As noted in the reading the potential penalty for corporate tax evasion is a fine of 52.5% of the amount evaded plus interest assessed at 5% annually along with a possibility of jail time. In general, monetary fines as a deterrent are preferred to blacklisting of company directors, revoking business operation licenses, or calling for prison sentences. Do you agree with this preference? Should companies that are guilty of tax evasion face something more severe than a monetary fine? Something less severe? Should the fine and interest amount be set at a different rate? If so at why? Provide support and rationale for your responses.

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Discuss the preferred deterrent method employed by the Zambian government to combat tax evasion, monetary fines. As noted in the reading the potential penalty for corporate tax evasion is a fine of 52.5% of the amount evaded plus interest assessed at 5% annually along with a possibility of jail time. In general, monetary fines as a deterrent are preferred to blacklisting of company directors, revoking business operation licenses, or calling for prison sentences. Do you agree with this preference? Should companies that are guilty of tax evasion face something more severe than a monetary fine? Something less severe? Should the fine and interest amount be set at a different rate? If so at why? Provide support and rationale for your responses.