Taxation and legislation impact positively and negatively on old mutual company by watching the financing activities (positive) and limits the mutual fund's operational movement (negative)
<h3>Further explanation
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Old Mutual Limited is a pan-African investment, savings, insurance, and banking group. Old Mutual is listed on the Johannesburg Stock Exchange, Zimbabwe, Malawi, Namibia also London Stock Exchanges.
Taxation is a term for when a taxing authority, usually a government, levies or imposes a tax. A tax is a compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization to fund public expenditures. The three types of taxes are the proportional tax, the progressive tax, and the regressive tax.
Tax laws are the legal rules governing how federal, state and local governments calculate the tax you owe. The laws are cover income, corporate, excise, luxury, estate and property taxes.
There are positive and negative impacts on the taxation and legislation impact on old mutual company (insurance),
Positive:
- Old mutual company has to introduce new income protection benefits that will offer improvements in the type and number of income benefits.
- Old mutual company has to offer highly competitive premium rates.
- Taxation will make it easier to watch the financing activities to avoid frauds
Negative:
- From March premiums will no longer be tax deductible, but benefit payments will be tax free.
- That the clients may be unnecessarily over-insured and no longer receive tax relief on their premiums.
- It limits the mutual fund's operational movement that create a lot of restrictions and cut off a lot of profit
<h3>Learn more</h3>
- Learn more about taxation brainly.com/question/879536
- Learn more about legislation brainly.com/question/11395907
- Learn more about old mutual company brainly.com/question/4708893
<h3>Answer details</h3>
Grade: 9
Subject: business
Chapter: taxation
Keywords: legislation, taxation, old mutual company, premiums, tax
