Section 482 does not priorities the specific methods. That is, a taxpayer may pick the best method based on the taxpayer’s analysis. Should the U.S. abandon the best method analysis principle and codify the order of which methods should be used?
Sample solution
Dante Alighieri played a critical role in the literature world through his poem Divine Comedy that was written in the 14th century. The poem contains Inferno, Purgatorio, and Paradiso. The Inferno is a description of the nine circles of torment that are found on the earth. It depicts the realms of the people that have gone against the spiritual values and who, instead, have chosen bestial appetite, violence, or fraud and malice. The nine circles of hell are limbo, lust, gluttony, greed and wrath. Others are heresy, violence, fraud, and treachery. The purpose of this paper is to examine the Dante’s Inferno in the perspective of its portrayal of God’s image and the justification of hell.
In this epic poem, God is portrayed as a super being guilty of multiple weaknesses including being egotistic, unjust, and hypocritical. Dante, in this poem, depicts God as being more human than divine by challenging God’s omnipotence. Additionally, the manner in which Dante describes Hell is in full contradiction to the morals of God as written in the Bible. When god arranges Hell to flatter Himself, He commits egotism, a sin that is common among human beings (Cheney, 2016). The weakness is depicted in Limbo and on the Gate of Hell where, for instance, God sends those who do not worship Him to Hell. This implies that failure to worship Him is a sin.
God is also depicted as lacking justice in His actions thus removing the godly image. The injustice is portrayed by the manner in which the sodomites and opportunists are treated. The opportunists are subjected to banner chasing in their lives after death followed by being stung by insects and maggots. They are known to having done neither good nor bad during their lifetimes and, therefore, justice could have demanded that they be granted a neutral punishment having lived a neutral life. The sodomites are also punished unfairly by God when Brunetto Lattini is condemned to hell despite being a good leader (Babor, T. F., McGovern, T., & Robaina, K. (2017). While he commited sodomy, God chooses to ignore all the other good deeds that Brunetto did.
Finally, God is also portrayed as being hypocritical in His actions, a sin that further diminishes His godliness and makes Him more human. A case in point is when God condemns the sin of egotism and goes ahead to commit it repeatedly. Proverbs 29:23 states that “arrogance will bring your downfall, but if you are humble, you will be respected.” When Slattery condemns Dante’s human state as being weak, doubtful, and limited, he is proving God’s hypocrisy because He is also human (Verdicchio, 2015). The actions of God in Hell as portrayed by Dante are inconsistent with the Biblical literature. Both Dante and God are prone to making mistakes, something common among human beings thus making God more human.
To wrap it up, Dante portrays God is more human since He commits the same sins that humans commit: egotism, hypocrisy, and injustice. Hell is justified as being a destination for victims of the mistakes committed by God. The Hell is presented as being a totally different place as compared to what is written about it in the Bible. As a result, reading through the text gives an image of God who is prone to the very mistakes common to humans thus ripping Him off His lofty status of divine and, instead, making Him a mere human. Whether or not Dante did it intentionally is subject to debate but one thing is clear in the poem: the misconstrued notion of God is revealed to future generations.
References
Babor, T. F., McGovern, T., & Robaina, K. (2017). Dante’s inferno: Seven deadly sins in scientific publishing and how to avoid them. Addiction Science: A Guide for the Perplexed, 267.
Cheney, L. D. G. (2016). Illustrations for Dante’s Inferno: A Comparative Study of Sandro Botticelli, Giovanni Stradano, and Federico Zuccaro. Cultural and Religious Studies, 4(8), 487.
Verdicchio, M. (2015). Irony and Desire in Dante’s” Inferno” 27. Italica, 285-297.
Sample Answer
Sample Answer
Evaluating the Pros and Cons of Abandoning the Best Method Analysis Principle under Section 482
Section 482 of the U.S. Internal Revenue Code provides guidance on the determination of transfer prices for transactions between related parties. Currently, taxpayers have the flexibility to choose the most appropriate transfer pricing method based on their analysis, known as the “best method” principle. However, there is ongoing debate as to whether the United States should abandon this principle and codify a specific order of methods to be used. This essay will evaluate the pros and cons of abandoning the best method analysis principle and implementing a prescribed order of methods under Section 482.
Pros of Abandoning the Best Method Analysis Principle
Clarity and Consistency: Establishing a prescribed order of methods would provide clarity and consistency in transfer pricing determinations. Taxpayers and tax authorities would have a clear framework to follow, reducing uncertainty and disputes.
Efficiency and Speed: A prescribed order of methods could streamline the transfer pricing process. Taxpayers would be able to focus on the applicable methods without spending excessive time analyzing multiple methods, resulting in more efficient compliance.
Reduced Disputes: A specific order of methods could potentially reduce disputes between taxpayers and tax authorities. With a standardized approach, there would be fewer disagreements on the selection of methods, leading to fewer audits and litigation.
International Alignment: Many countries have already adopted a hierarchy of methods in their transfer pricing regulations, such as the Organization for Economic Cooperation and Development (OECD) guidelines. Aligning the U.S. approach with international standards could enhance consistency and reduce double taxation risks.
Cons of Abandoning the Best Method Analysis Principle
Lack of Flexibility: Implementing a prescribed order of methods may limit the flexibility to choose the most appropriate method for a specific transaction. Different transfer pricing methods have their strengths and weaknesses, and a rigid hierarchy may not always capture the unique circumstances of each case.
Inadequate Consideration of Industry-specific Factors: Certain industries may require specific transfer pricing methods due to their unique characteristics. Prescribing a specific order of methods might not adequately account for industry-specific factors, potentially leading to less accurate transfer pricing outcomes.
Complexity and Burden: A prescribed order of methods could add complexity to the transfer pricing process. Taxpayers may still be required to analyze multiple methods to demonstrate why a method higher in the hierarchy is not appropriate, resulting in additional compliance burdens.
Stifling Innovation: Abandoning the best method analysis principle might discourage the development and use of new and more accurate transfer pricing methods. A rigid hierarchy could inhibit innovation and hinder the ability to address evolving business models and transactions.
Conclusion
The decision to abandon the best method analysis principle under Section 482 and codify a specific order of methods is complex and involves trade-offs. While implementing a prescribed hierarchy of methods may bring clarity, consistency, and efficiency to transfer pricing determinations, it could also limit flexibility, fail to address industry-specific factors, and add complexity to the process. Striking the right balance between standardization and flexibility is crucial. Tax authorities should carefully consider the potential benefits and drawbacks before making such a significant change to transfer pricing regulations under Section 482. Ultimately, the objective should be to ensure fair and accurate transfer pricing outcomes while minimizing compliance burdens and disputes.
