Legality And The Morality Of Insider Trading Finance Essay - Free Essay Example

Sample details Pages: 6 Words: 1841 Downloads: 10 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Did you like this example? Is insider trading ethical? Is insider trading illegal? Insider Trading phenomena is controversial and is bringing a lot of discussion around itself. Some of the opponents claim that its both not ethical and legal to use information, which is not putted into public knowledge, while other opponents argue that insider trading increases market efficiency and does not any hurt to anybody. During this paper I will try to bring topic closer to the reader by providing the reasoning of both parties involved in discussion. What Insider Trading states for? Who is an insider trader? It is hard to define insider trading due to complexity of the topic, however the most common definition stands for: Insider trading is illegal when transactions like buying or selling stocks, bounds or other securities are based on information that is not available to the general public. In other words, the inside information which is used by inside traders to influence their decisions before publishing this information to public knowledge, thus giving them an edge in making the best deals, whether to buy or to sell. This competitive advantage according to the law is illegal and according to some scholar it unethical. Insider informer can take any forms. One can be a member of a company and has stock in the company, and finds out that your company is going publicly bankrupt the next day. Or, quite the opposite, if a business was to be buying out a major competitor, knowing that information before it was publicly announced would also be insider information. Paying someone to be a n informant from a company is also considered as insider information and again is illegal. Insider traders are usually defined as companys officers, directors and any beneficial owners of more than ten percent of the companys equity securities. However, American law is not limiting anti insider trading law only to these people. In the understanding of this law, any person who trades shares based on material non-public information in violation of some duty of trust. This duty may be imputed; for example, in many jurisdictions, in cases of where a corporate insider tips a friend about non-public information likely to have an effect on the companys share price, the duty the corporate insider owes the company is now imputed to the friend and the friend violates a duty to the company if he or she trades on the basis of this information. Don’t waste time! Our writers will create an original "Legality And The Morality Of Insider Trading Finance Essay" essay for you Create order Insider trading legal aspects. Insider trading was not always illegal. First regulation in the USA appeared only in 1929 when the USA Congress passed the laws limiting insider-trading acts, and created the Securities and Exchange Commission to enhance market oversight. Since that time much of the development of insider trading law has resulted from court decisions. Nevertheless there is still a legal dilemma about insider trading as for example: the law prohibits these insiders from trading on this information until the information is made public. But even then the definition of what is made public may not be what one thinks. Lets assume that a person working for a company on a proposed merger with another company happens to mention it to a friend who works for a newspaper or news broadcaster who then publishes the information. Has it then become public such that everyone is now free to trade in the securities? No. There are also strict interpretations on this subject. The information has become public when the company officially publishes the information by filing it officially with the appropriate authorities, meaning the Ministry of Finance. The other alternative is for the company, itself, to arrange its publication in two public media such as newspapers, TV broadcasts, etc. Even then, individual has to wait until 12 hours after it is made public. America has been a pioneer in criminalizing insider trading, but nowadays regulations, which prohibit this phenomenon, are present in law legislation in most of the countries all over the word. As example: In the UK, the relevant laws are the Criminal Justice Act 1993 Part V Schedule 1 and the Financial Services and Markets Act 2000, which defines an offence of Market Abuse.  [1]  Just like in American law, it is also illegal to fail to trade based on inside information. The principle is that it is illegal to trade on the basis of market-sensitive information that is not generally known. No relationship to the issuer of the security is required; all that is required is that the guilty party traded (or caused trading) whilst having inside information.  [2]  In comparison in Japan first law against insider trading appeared in 1988 but even now as Roderick Seeman claims that: many Japanese do not understand why this is illegal. Indeed, previously it was regarded as common sense to make a profit from your knowledge.  [3] Insider trading Ethical Dilemma. Even with existing laws and regulations, ethical dilemmas still exist and the laws are sometimes vague. When we analyze insider-trading phenomena, we can ask ourselves the question what is wrong in taking good luck and opportunity to advance in business and profit? I would answer NOTHING, except the fact that it is an illegal act. That is why some economists and authorized scholars, like Henry Manne, Milton Friedman, Thomas Sowell, Daniel Fischel, Frank H. Easterbrook argues that laws, which makes insider trading illegal should be cancelled.  [4]  They claim that insider trading based on non-public information benefits investors, as well, by more quickly introducing new information into the market and in this way speeds up market efficiency, which is a benefit for all parties. Moreover according to some economist such control over the stock market is too much government regulation in the stock market, and in same way is harmful to capitalism. Henry Mann, argues that the legi slation has not stopped insider trading from happening, and that legalizing it is a sensible solution to the improper regulation that ultimately hurts the market. He also claims that if insider trading is allowed, it will allow stocks to show its actual worth, rather than have the price tempered by waiting for the information to go public.  Ã‚  [5]  Another great economist Milton Friedman, laureate of the Nobel Memorial Prize in Economics, said: You want more insider trading, not less. You want to give the people most likely to have knowledge about deficiencies of the company an incentive to make the public aware of that. Friedman did not believe that the trader should be required to make his trade known to the public, because the buying or selling pressure itself is information for the market.  [6] This brings me to another critical issue. Does the fact of possessing information bring necessary any value? No, because to act on any piece of information requires interpr etation of that information, which in turn requires a large number of other pieces of information. Lets imagine that for example Apple announced that that its Q4 profits have raised by 45 percent. This doesnt really tell anyone how to perform it in the market for Apple securities, whether to buy or sell. This requires additional general knowledge about IT market, the profits of other IT companies and Apple main competitors future actions plan and so on. Only if we add to the Apple announcement information about Microsofts profits, which let says, could have raised by 100 percent, we can draw father conclusions. So any single piece of information about a company, however critical it may be to that company and its future, does not in itself provide clear instruction to the investor. Action requires interpretation, which requires wider knowledge. Many market theorists have argued, that insider trading enhances market efficiency, smoothes price volatility and reduces the likelihood o f price shocks arising from unexpected events.  [7]  On the other hand, when we think about illegal aspect of these phenomena it is hard to not agree that providing information which are not public to the everyone knowledge introduce the problem of the fairness. Fairness which in these case would hold that in a fair market, all parties have equal access to information relevant to asset valuation, but entitled to nothing more.  [8]  So in this situation insider trading is perceived as an unfair act, it causes some injury to specific traders or potential traders, or because it causes investors as a whole to lose confidence in the securities markets. To illustrate, assume that insiders are aware of negative information regarding Alpha Corporation that, if disclosed, would cause the current per share market price of Alpha stock to drop from $25 per share to $20 per share. Prior to public release of the information, Alpha insiders sell Alpha stock on the basis of this negative in formation, reducing Alphas price to $23 per share. Some outsiders will undoubtedly sell at $23 and could thus legitimately claim to be $2 per share poorer than they would have been absent insider trading. A corresponding number of investors, however, will purchase at the more correct price of $23 per share, making them better off than they would have been in the absence of insider trading. Although the $23 per share price is higher than the $20 per share price that would have prevailed if the insiders had been forced to reveal their secret information prior to trading, this harm is attributable to the lack of a general duty to disclose material non-public information under the federal securities laws and not to insider trading.  Ã‚  [9] This example touches another critical issue in the insider trading discussion like stock price manipulation phenomena. We can imagine the situation where insider traders manipulate investors by releasing fails information about company in o rder to move market prices away from their fair values and take financial benefit from it. As the last, insider trading also violates the duty of trust or confidentiality that one individual or business entity owes to another. This causes loss in confidence in the securities markets. People fear that insider traders regularly take benefit at their expense, which lead to decrease people in willingness to invest. In this case raising new capital would be more costly for companies whose securities were harmed by insider trading. Hence, all else being equal, insider trading makes it harder for companies to raise money when opportunities to undertake new projects arise. Conclusion For sure there are no clear and easy answers to the question of regulating insider trading. Insider trading may have benefits for both the company and the capital market under certain conditions. As was presented above insider trading can positively influence the market effectivness Henry Manne Insider Trading and the Stock Market. However, the arguments against regulation show a certain ambiguity and doubts of regulators are proven. Even though scholars often argue that fairness considerations do not carry much weight, the personal feelings of the individual investor and his confidence in the integrity of securities markets must be taken into account. Although insider trading can have positive effects for the firm and its wealth, as the arguments of deregulators show, it also bears several severe risks. The costs seem to outweigh the benefits.  [10]  Therefore, it is correct to prohibit insider trading by a mandatory regulation.

EST1 Task 2 Ethics - 1694 Words

I and two other individuals have agreed to start a business that will provide management consulting services to nonprofit organizations. Because of the increased scrutiny on actions of corporations and those who act on behalf of organizations, we have determined that it would be essential to have our ethics program developed before we start offering our services. A business as a moral agent must prove that it has an effective ethics program to protect employees, the corporation, and businesses that the company will serve. It is also important to have an ethics program to support the ethical values of our corporation and to make it clear to employees what is acceptable behavior, and to make clear what policies and standards are to be†¦show more content†¦The MCS individual will be given 30 days to complete the online training to be completed each year no later than 30 days after the date of hire, i.e. date of hire 06/10/2011, a particular employee would have until 07/10 of every year after their employment date to take the yearly online ethics training and have their completion page signed and sent in to the HR Ethics Manager. The PC online training would encompass four specific areas: Enforcement of company rules. Code of Conduct. OSHA. Ethical behavior toward peers in the company. Workplace Diversity. Discrimination in the Workplace. Harassment Training. Ethical behavior of consultants toward clients. Clients. Fees. Engagements. Profession. Ethical behavior regarding the environment in relation to company property and liability issues. C. Monitoring, Auditing, and Reporting Ethics Violations: The Board of Directors would be in charge of the Code of Ethics for our company and subject to its rules and regulations. We three would be the committee and I am the Ethics manager and officer. Any and all concerns should be turned in via the online program for anonymous purposes and be directly handled by our committee. The employee and all personnel for our company may still contact the Ethics Officer personally if that is the more comfortable way to deliver the ethics concerns and perceived violations. The Ethics committee would be responsible for developing and interpreting policies andShow MoreRelatedEst1 Task21159 Words   |  5 PagesWGU EST1 Task 2 Company X Ethics Program Standards and Procedures: Company X expects all employees to conduct themselves with integrity, professional and responsible actions at all times. An employee’s actions in both personal life and professional life should avoid any situations that (A) could be construed as harmful to the company or its employees or (B) cause negative public reactions that could impact Company X customers or customer relations in adverse ways. You are a Company X representativeRead MoreAssignment Questions On Ethical Situations2379 Words   |  10 Pages John Rolph EST1: Ethical Situations in Business Task 2 Standards and Procedures 1.) Information Confidentiality: As an employee, you will be exposed to client-sensitive as well as company-sensitive information that is to be viewed only by those who have the authority or permission to do so. Such information to be considered â€Å"confidential† includes business contracts, financial information, internal correspondence, and any and all documentation (electronic or paper-based) that is not authorizedRead MoreTask 2: Est1 Essay example2372 Words   |  10 PagesJohn Rolph EST1: Ethical Situations in Business Task 2 Standards and Procedures 1.) Information Confidentiality: As an employee, you will be exposed to client-sensitive as well as company-sensitive information that is to be viewed only by those who have the authority or permission to do so. Such information to be considered â€Å"confidential† includes business contracts, financial information, internal correspondence, and any and all documentation (electronic or paper-based) that is not authorized

How Important Is the Character of Alfieri to the Play as a Whole free essay sample

How is the Character of Alfieri important to the play as a whole? The character of Alfieri appears at the very beginning of the play being the first character the audience is introduced to. As the narrator of the play, Alfieri introduces the audience to himself, the other characters and also, within his opening speech, links to many ideas which foreshadow the events throughout the play. Alfieri as the narrator of the play could also be linked to the chorus within the Greek tragedy play structure. Through this he stands apart from the drama that engulfs the other characters and is a trustworthy observer as he comments on what is happening with the other characters. By talking directly to the audience he gives an insight to the other characters from his view, ‘This ones name was Eddie Carbone, a longshoreman†¦Ã¢â‚¬â„¢ ultimately allowing the audience to gain a quicker view of the characters. We will write a custom essay sample on How Important Is the Character of Alfieri to the Play as a Whole? or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Throughout the play the audience can see that Alfieri does not want anything from anyone else in the story, only getting involved to help and give advice to those such as Eddie and Marco. This is showing the importance of being a detached observer but also part of the community. The details the audience learns about Alfieri in his opening speech, ‘I am a lawyer. ’ are not to present his personal character to the audience but to give the setting of the play and his important position within it in relation to the other characters. Through Alfieri’s opening speech the audience becomes aware of his profession as a lawyer but also that between him and the rest of the community there lies ‘years of distrust. This may be due to the fact he is a higher rank to them with his wife and friends telling him that the people he works for ‘lack elegance, glamour. ’ However, the relationship Eddie has with Alfieri goes beyond the lawyer/client relationship. This suggests the fact that even though Alfieri told Eddie there was ‘no recourse in law’ he could use to stop Catherine marrying Rodolfo, Eddie still went back to him a second ti me. Alfieri seems to be the one person Eddie can share his emotional feelings with, ‘and he puts his hands on her like a goddamn thief! In this way Alfieri links to the idea of a priest. This being because of the fact that Eddie feels as if he can go to him for moral advice as well as legal advice. Thus making him an important character for the audience to use to see Eddies true emotions. Whenever Alfieri speaks directly to the audience he uses the past tense, linking back to the events that happened. He seems to foreshadow much of what happened in the play allowing the audience to believe the fact that this play is a tragedy, ‘I watched it run its bloody course. Through the use of foreshadowing, Alfieri created the feeling of timelessness especially when referring to the themes of justice straight away, ‘justice is very important here’ linking this to Eddie. He also subtly foreshadows to the audience what justice means to people like Marco stating ‘no w we settle for half’ implying that whatever justice means for the Americans it means more to the Italians, linking to Marcos thirst for revenge and the lead up to eddies tragic death at the end of the play. In conclusion, it is Alfieri who right from the first encounter with Eddie foresaw the tragic end to Eddie, which he was ‘powerless’ to prevent, despite his best efforts in telling Eddie that there ‘is nothing you can do. ’ Also with Alfieri identifying Eddie as the hero in this particular tragedy and the audiences’ view of Eddie being the villain, it creates an important comparison of how the characters are viewed. Some can also argue that it was Alfieri who suggested the idea that lead to Eddies downfall, ‘the manner in which they entered the country. But I don’t think you want to do anything about that, do you? ’ Through this and also the way his role as a narrator helps him achieve the exploration of more universal and timeless themes is Alfieri a very important and needed character in A View from the Bridge.

Love Is Only a Feeling free essay sample

Despite a few floppy tracks, â€Å"Love Is Only a Feeling† (song) is a stupendous song with incredible lyrical choice.As Joey is explaining in the intro how this female makes him happy, he goes on about their future together and the things they will/can share: Look, I love her curves but what’s more Preferred Is the way she articulates words Can’t help observe and stare When she in the mirror Masking the massacre while she fixing her hair Possibly referring to the pain in her life, this woman uses makeup to distract herself from the fact that she is in pain. Strictly speaking, joey can’t keep his eyes off her as she is covering the â€Å"massacre† on her face. Joey appreciates her independence as a woman, although she is wrapped up in the idea of being alone and not needing any man, Joey would love to be hers: I wanna see you shine like the gem that you are Want you be so secure that they can see from afar That you don’t need another man It’s a beautiful emphasis that acknowledges the aspects that make her, her. We will write a custom essay sample on Love Is Only a Feeling or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Joey wants to exemplify his relationship with this woman, he is so enthralled that he can’t help but to get thrilled with the thought of having a future with her. As he looks at her he sees how much of a real mature relationship they have, to him it’s perfect and wishes to hold onto it forever: You’re the only reason i be, staying here Wanna paint a picture, let’s make it clear The future so bright baby, race you there To him, â€Å"painting a picture† is a visual to what he wants forever but his word choice in the chorus can be slightly confusing: Love is only a feeling Love is only a feeling Love is only a feeling Love is only a feeling The fact that the whole song is talking about romance, the chorus contradicts the versus saying â€Å"love is only a feeling† because it suggests this love he has or wishes to have will disappear someday because although he wishes to have a future with this woman, love is only a feeling to him. Furthermore, it can also be more of a fear; a fear to accept love because once it is accepted you become vulnerable and â€Å"unprotected† which gives them the power to hurt you. Sincerely for Joey, Love is Only A Feeling.

5 Reasons Building a Personal Website Will Help You Find a Job

5 Reasons Building a Personal Website Will Help You Find a Job It’s all about the branding†¦how many times have we heard that mantra? How many times have we used it ourselves? Lots, and there’s a good reason: you need to stand out. In life, sure, but especially when you’re looking for a job. When you apply for a job, you know you’re great (confirmed by your fifth grade soccer trophy, among other things), but how do you prove that when there are 10, 20  other applicants with similar resumes? Building a personal website! It seems overwhelming, but a little bit of time up front can yield great results for your job hunt. Read on to find out why.1. It impresses hiring managers.Having a supplemental website that outlines your professional goals and achievements shows that you’re committed to your job search, and are trying to find ways to stand out in the crowd.2. Like your career, a website can evolve.A resume is what it is: a frozen snapshot of you at a particular point in your career. Once you send it out t he door via email or on paper, there’s no taking it back, no making changes in the short term. Having a personal website (which you’d link in the cover letter or the resume itself), gives you the opportunity to update information that hiring managers can see in real time. Think of it as a kind of living resume to supplement the traditional one that goes out.3. It’s easy.Even if you’re not comfortable with doing web design yourself, these days everyone has a brother, cousin, or roommate’s buddy who does freelance web design. And if you don’t go that route, there are plenty of free and inexpensive tools online that can help you get started with a basic website. Sites like Strikingly or GoDaddy can help you get your brand online quickly and easily.4. It’s a way to collect your branding in one place.Chances are, hiring managers are going to Google you. Normally what would come up is a smattering of social media accounts (and hopefully not that blog you started back before people knew they needed to moderate their online presence). Having your own branded site can collect all of those things in one place, creating a hub that’s all about you. (Of course, make sure that only the social media that shows you in your best professional light are included.)5. It can raise your profile.Your website won’t just be accessible to hiring managers- you might be surprised at the opportunities that could come from potential employers searching online. A website can also enhance your social media presence, and start building the kind of network that could introduce new opportunities as well.If you find that you’re struggling to get interviews or stand out from the pack as you apply for jobs, it’s time to shake things up a bit and add something new. Building a website shows a commitment to your professional brand, and could be just the extra edge you need to get in the door for an interview.

Comptemporary Issues In Criminal Justice

Comptemporary Issues In Criminal Justice Free Online Research Papers Crime and the Media A lot of people blame the media for violence and crime. They say that making movies showing a lot of violence and drug use causes teenagers to want to act like the people on the movies. I do not think that the media is the cause of crime. In most of the movies they make, the bad guy usually ends up dead or in jail. The movies are actually teaching children that there are consequences to crime and that no one gets away with crime. Those who choose to blame the media for the raise in crime rates suggest that due to the amount of television watched by juveniles, it will cause them to become criminals. Babybag.com states that the average American child will witness over 200,000 acts of violence on television including 16,000 murders before age 18. Babybag.com also did a poll to parents and when they were asked to select measures which would reduce violent crime a lot, Americans chose restrictions on television violence more often than gun control. All movies that contain extreme violence are rated R and a child should not be allowed to see the movie. Movies shown on television are also rated. It seems that the problem is not with the type of movies that are made but the problem is with the parents who allow their children to watch violent movies. People fail to see that violence is not caused by the media it is caused by people. Its the jealousy, the insults, and the striving to fit into society that causes all the crime. If the parents would raise their children to understand that violence is not the way to handle a situation there might be less crime. When a child does get into trouble the parent should blame themselves and not the media for the way their child was raised. I this world it has become so much easier to blame someone else instead of taking responsibility for your own mistakes. The Media Should be Used to Fight Crime I think that using the media to fight crime was an excellent idea. Shows like America’s Most Wanted have helped to hunt down criminals for decades. With out shows like this there would still be a lot of criminals on the loose. There are people who think that shows like these are only in it for the money. Although they do make a lot of money; they also spend a lot of money tracking down criminals. A lot of people do not believe in shows like AMW. I have heard several people say that they are just for show; the crimes do not really exist and they are all actors. It is true they use actor to replay the crime. However, the crime is real. The things they show have really happened and the criminals they show are really out there. There are different ways the media can be used to fight crime. AMW is a great show and a great start at stopping national crime. The local news station also helps to deter crime and find criminals. There are people who rob stores all the time and think that they got away with it. What they do not realize is that they are now on surveillance cameras and that video has been shown on every news station in the surrounding areas. If it was not for the media and crime prevention strategies like Crime stoppers with McGruff the dog, AMW, the news, and local newspapers we would not have a clue when a dangerous person was around us. With out the media I believe that more than 50% of all criminals would still be free instead of locked up like they need to be. I am personally grateful that the media cares enough to inform us of what is going on in the world. Police Brutality is Not a Problem Police brutality has become a serious problem in today’s world. A police officers job is to â€Å"Protect and Serve† instead they abuse and neglect. There must be something in the badge that gives him a super power because as soon as the badge goes on he begins to believe he is invincible and he has the all time power of God. Police brutality is not something that just happened overnight. It dates back as far as the Biblical days. The New Testament tells of several incidents in which the Roman Guards inflicted violence on many of the new Christians. (Wikipedia 2007 par. 3) Most modern day police did not even exist until the 19th century and even then police brutality was very frequent. Police brutality has also been brought in to the 20th century. Debating Crime tells of the Rodney King story. In this incident several white officers beat up a black man. One of the officers actually stated â€Å"I was scared to death that if this guy got back up, he was going to take my gun away from me† (Debating Crime). When you have several trained officers and one criminal it is very doubtful that the one is going to overwhelm the several. Officials claimed that the police were innocent and they did the right thing. There are some people who do not believe that police brutality is a problem. They say that officers have to use force to get their point across. Others say that force is used only when necessary. This was the case in the King incident. Has this world became so bad that the people we trust to protect us should now be the people we fear the most. Something needs to be done to officers who use excessive force. If a citizen beat someone with a club or taser them with a gun for no necessary reason they would go to jail. Maybe a few officers should spend a day or two in jail and be taught a lesson. Abolish the Death Penalty The death penalty is usually what people receive as punishment for murder. Those who believe in the death penalty believe that â€Å"an eye for an eye† is the proper punishment. They think that death deserves death. The debate over the death penalty has been going on for decades and still not everyone can agree on it morality. In John Kavanaugh’s essay â€Å"Capital Punishment is Unjust†, Kavanaugh discusses different reasons that we as a society may have for legally killing people by means of the death penalty. He begins by depersonalizing the human saying that those who believe in the death penalty do not value a person as being expendable. They only think of the person as a murderer or other form of criminal. I think that the death penalty should be abolished. The death penalty is immoral because of the commandment â€Å"Thou shalt not kill†. No one has the right to play God and decide who gets to die and when they get to die. No human has the right to take another humans life. The death penalty does not deter criminal behavior because they are not given the chance to rehabilitate. The system is to give a person the chance to rehabilitate before resulting to such tactics as killing a person. When most people commit a crime they are thinking that they will not get caught. They are not sitting around thinking† If I kill my wife for cheating I will be put to death for her murder†. Instead of playing God by trying to decide who dies, when they die, and what they die for our government should be able to come up with an alternative solution. The families of victims should be more open to rehabilitating the murderer than killing him. Killing the murderer and inflicting pain on his family does not bring back the victim. In these situations all we as a society should hope for is that this person finds God and changes his life. No one expects the victim’s family to forgive or forget what happened to them. We should hope that their heart is big enough to pray for the sinner. The Criminal Justice System Discriminates Against Minorities I believe the criminal justice system is very discriminatory when it comes to minorities. Most people say that the Justice system does not discriminate it just so happens that minorities are the only ones who get in trouble. When speaking of minorities we are not only speaking of just race. Minority is defined by Webster’s dictionary as† a part of the population that differs from others in race, religion, or social class† When it comes to cases like the O.J. Simpson trial; if that had of been a poor white man or a poor black man that committed the same crime in the same manner he would have been charged with murder. IN the Rodney King case, if it would have been a white man he would have never been beaten. One of the officers in the King case said â€Å"I was scared to death that if this guy got back up, he was going to take my gun away from me† (Debating Crime). The only thing he was scared of was the fact that Rodney King was black. When it comes to minority cases and the court system the minorities usually end up in jail. If a rich man and a poor man are charged with the same crime, they will end up with different punishments. Due to the process and costs of the court the poor man usually can not afford to take off of work while he goes to trial so he gets a public defender to take a plea for him. He can not afford a good lawyer that can fight his case for him. IN return he usually gets jail time. The white man can afford to take off of work for court and pay his attorney enough money to pay off the judge so he does not get any jail time. It is rare that the rich man get any thing more than a small fine. Parole Should Not be Abolished There are several issues in the debate of whether or not to abolish parole. The Lectric Law Library defines Parole as â€Å"any form of release of an offender from imprisonment to the community subject to conditions imposed by the releasing authority and to its supervision.† If the states decide to keep parole then it gives the prisoners a second chance. There are some people who can be rehabilitated and parole gives them that chance. If they can show good behavior while in prison who is to say that can not continue that good behavior outside of the prison? Free Law suggests that sentencing should be â€Å"based on the charges a person is convicted of, and the evidence against them. Each prisoner should be assigned a definite term of imprisonment and a discharge code. This sounds like a good idea. If parole is abolished then it will possibly leads to prison overcrowding. If they keep everyone in prison and they add more on a daily basis soon all the prisons will be over crowded and there will be dangerous criminals on the street because there is not room to house them in the prison. There are already 15 states that have abolished parole boards (NCPA, 2007). These states believe that the criminal should have to serve his full sentence or else there would be no point in the â€Å"Truth in Sentencing† law. It has also come to the attention of these states that the parole boards are a â€Å"Failure† (NCPA 2007). They let people out on parole based on their behavior on the inside and when they get out then they repeat the same crime again. It is up to each state as to how they decide on this issue. In my opinion I would like to keep parole so that the good people have a chance to live their life. There is always going to be a bad apple in the bunch. We should not punish them all just because of one. Everybody deserves a second chance. U.S. Patriot Act The U.S Patriot act does not infringe on our civil liberties. It was simply made to make things safer for the citizens of the United States against terrorist attacks. Those who are against the USA Patriot Act, say that it is violation of the Sixth Amendment. The Sixth Amendment gives us the right to trial, notice of accusation, and the right to legal counsel. Another controversial aspect of the Patriot Act is the search and seizure process. The USA Patriot Act allows law enforcement agencies to delay giving notice when they conduct a search. (USA Patriot Act, 2001) The Fourth Amendment protects citizens against unreasonable searches and seizures. It requires a warrant and notice to the person before the search is conducted. The Patriot Act is considered to be a clear violation of the Fourth Amendment. They feel that by allowing wire taps and such then they are invading their privacy. The final aspect of the Patriot Act deals with the rights of public library users. Those who are against the Patriot Act believe that it endangers the privacy rights of library users by allowing electronic surveillance on library servers and sign-up lists. The American Association of Research Libraries states that the legislation â€Å"threatens the rights of the public and undermines the confidentiality that is crucial for the free flow of information needed for the provision of library services.† I support the Patriot Act and in response to the accusations of the non- supporters I say that it is important to be able to have wire taps because most terrorist are technologically sophisticated. My theory is that if people are not doing anything wrong then why are they worried about what the government finds? Personally I had much rather them investigate and clear me as a suspect than to keep thinking I did something wrong when I did not. A Decentralized System is Better Than a Centralized System I think that a decentralized system with deeper community connections would be better in helping the U.S. operate. When it comes to issues such as border patrol and helping to protect the citizens, it would be better to have more people on the job.(Defending the Homeland) Homeland Security does a good job but they just do not have the man power to save the world. It is obvious that we need more and better people running border patrol. Most terrorist are already in the U.S. because we let them come in. We have no one to blame but our government. There needs to be more people on the job so that we can better analyze the people who want to cross our borders. When it comes to analyzing threats there needs to be more than one set of people on the job. One person might see a bomb threat as just a joke where another person would already know how serious it is. The more people who play the game the more points they can earn. Instead of having one unit that â€Å"knows it all†. Different units can learn from each other. In the event that we have a national disaster the more people there are to help the better off we are. When 9-11 happened we had offers and fireman from every city and state pitch in and help. It made things go a lot quicker than if we just had one unit working on it. During evacuations, things would run smoother if there were small and big units working together to get the citizens out of harms way. References Baby bag (2007) Facts about media violence and effects on the American family. Retrieved on November 16, 2007 from babybag.com/articles/amaviol.htm Debating Crime Part III debating the limits of police power (2001) Wadsworth Wikipedia (2007) . Police Brutality retrieved on October 4, 2007 from http://en.wikipedia.org/wiki/Police_brutality Free Law Answer (2007 October 13) Should parole be abolished. Retrieved on October 25, 2007 From www.freelawanswer.com/law/4103-law-1.html Kavanaugh, J. (2004) Capitol Punishment Is Unjust. Opposing Viewpoints. Retrieved September 23 2007 from . Lectric Law Library (2007) Parole. Retrieved on October 24, 2007 from lectlaw.com/def2/p005.htm Minow, M. (2002). The USA PATRIOT Act and Patron Privacy on Library Internet Terminals. Retrieved April 12, 2004, from llrx.net/usapatriotact.htm NCPA (2007) Fifteen States Abolish Parole. National Center for Policy Analysis Retrieved on October 25, 2007 from ncpa.org/pi/crime/pd011399h.html USA Patriot Act. (2005, April 29). Issues Controversies on File. Retrieved November 15, 2007 from FACTS.com database. Wadsworth/Thomson (2005) Defending the Homeland: Taking the offense. Retrieved from Axia College database on October 25, 2007 Webster’s Vest pocket dictionary (1981) Springfield, MA; Merriam-Webster Wikipedia (2007) . Police Brutality retrieved on October 4, 2007 from http://en.wikipedia.org/wiki/Police_brutality Research Papers on Comptemporary Issues In Criminal JusticeEffects of Television Violence on ChildrenCapital PunishmentThe Effects of Illegal ImmigrationRelationship between Media Coverage and Social andThe Relationship Between Delinquency and Drug UseWhere Wild and West MeetUnreasonable Searches and SeizuresPersonal Experience with Teen PregnancyQuebec and CanadaHip-Hop is Art

Taxation Law Assignment Essay Example | Topics and Well Written Essays - 2500 words

Taxation Law Assignment - Essay Example However, this section also puts a discretionary element into the ATO's or the Judge's determination because the expenditure has to be necessary to the actual capital gain, which brings into question the validity of the expenses that are preparatory in nature or for other purposes rather than the actual construction. The key point that this judgment made is that the determination of this and subsequent cases is in reference to all circumstances, which includes an examination of the taxpayer's purpose or intention in incurring the expenditure. If it is necessary to apportion a loss or outgoing, the appropriate apportionment will depend on the facts of each case. The method taken must be fair and reasonable as per the case of Ronipibon Tin NL v Tongkah Compound NL v FC of T [1949] (78 CLR 47). The expenditure to be deductible if it necessarily incurred for the particular income producing purpose in question, which can include limiting to an the income for just a particular year as per t he case of Fletcher v Federal Commissioner of Taxation [1991] (173 CLR 1). In this case of the vacant land that was leased in the aforementioned ATO decision the owner did not purchase the land for leasing, rather private purposes so in the original sale there was no allowable deduction. Now the owner is using the land to bring in income, therefore the owner is allowed a deduction in the tax year that is expended up to the amount of the income earned but not exceeding this. In the case of the swimming pool that BLW have built on the vacant land that they own they are sure to be allowed certain expenditures on the land as allowable deductions. The first thing to identify is that the improvement and expenditure outlaid is not for private purposes, because if it were the costs would not be deductible. As the purpose of the expenditure is to build a swimming pool for the community, which will cost to enter then it is classed as a business venture and therefore valid deductions are possible from the income of $60,000 from Mulga Council. It needs to be noted that the whole profit is counted as no GST was paid because in this dealing of the monies going to BLW from the council there was a tax exemption. In relation to the $660, 000 to the builder of the pool one has to consider whether this is deductible or as this is the contractual duty that BLW owed to Mulga to get the $600,000 then it is not a deductible cost because it is the work that needs to be complet ed to get the $60,000. Therefore under Section 8-1 of the ITAA it is not a deductible costs; however for the other costs that are mentioned they may be deductible. Also in respect to deduction and depreciation under CGT and cost bases this property fulfills the requirement, which is that the land is improved to enhance the value of the