The impact of anticipated inflation and unanticipated inflation. Concept Introduction: Inflation: Inflation is the rate at which the common price level for goods and services are increasing. Anticipated inflation: When accurate prediction about inflation can be made then this type of inflation is known as anticipated inflation. This type of inflation has lesser impact on the common people as they can take the precautionary measures. Unanticipated inflation: Unanticipated inflation is the inflation that happens all of a sudden and cannot be predicted beforehand. This type of inflation has a larger impact on the common people as they cannot take any precautionary measures.

Question

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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Question

Chapter 7, Problem 4.10P

To determine

The impact of anticipated inflation and unanticipated inflation.

Concept Introduction:

Inflation: Inflation is the rate at which the common price level for goods and services are increasing.

Anticipated inflation: When accurate prediction about inflation can be made then this type of inflation is known as anticipated inflation. This type of inflation has lesser impact on the common people as they can take the precautionary measures.

Unanticipated inflation: Unanticipated inflation is the inflation that happens all of a sudden and cannot be predicted beforehand. This type of inflation has a larger impact on the common people as they cannot take any precautionary measures.

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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.