Legal Mechanisms for Foreign Institutional - Free Essay Example

Sample details Pages: 10 Words: 3110 Downloads: 8 Date added: 2017/06/26 Category Law Essay Type Analytical essay Level High school Tags: India Essay Did you like this example? Abstract The paper seeks to lay down the existing legal mechanism for the foreign institutional ( portfolio ) investors in India and draws out its merit and demerit. I then seeks to draw outline to the current response of the Indian state both, legislature and judiciary to the foreign institutional investors. It then seeks to draw out the existing dichotomy between the income tax department and the government policies about the FPIs. Don’t waste time! Our writers will create an original "Legal Mechanisms for Foreign Institutional" essay for you Create order Introduction Foreign institutional investors have not been defined in the income tax. The term in economic sense means an investment that is made into a country without a permanent establishment. Whether or not the investor has a permanent establishment in India is an important factor to determine before giving them tax benefit. There can be many definitions of the same, one of the standard definition that is used is given in the Article 7 of the DTAA between India and UK. It defines that a person has a permanent establishment if he maintains a stock is goods or merchandise from where he actually delivers goods or merchandise for or on behalf of the enterprise.[1] Simply because one carries out a business in another country through a middle man does not mean that one has a PE in another country. One company has to exercise effective control on the portfolio company for it to be considered as their company. [2] The power to define and name an investor as FIIs has been given to t he Central Government under section 115 AD (3) (a). In 1995 Government of India listed 65 FIIs and they were treated to be foreign institutional investors (hereinafter referred to as FIIs).[3] The Foreign portfolio in investors (FPIs) registered with the SEBI are also be referred to as FIIs for the purpose of section 115 AD.[4] They have an advanced tax liability as per the provisions of Part C of Chapter XVII of the Income Tax Act 1961. They can claim Tax deduction at source (TDS) or avoid tax as per the DTAA. Section 115 AD elaborates what would constitute total income for a FII and it includes: (1) income received in respect of securities other than the income received from dividends. [5] Or units referred to in section 115 AB, i.e. income received in respect of units purchased in foreign currency or long term income arising from the transfer of foreign currency. (2) Income by the way of short term capital gain arising from the transfer of such securities. The amount of income ta x is to be calculated in the following manner: (1) For securities, it is to be calculated at the rate of 20 percent with an exception mentioned in section 194 LD. [6](2) For short term capital gain, it is to be calculated at 30 percent except for the income in section 111 A which is to be calculated at the rate of 15 percent[7]. (3) For long term capital gain , it is to be calculated at the rate of 10 percent[8] (4) the amount taxed had the income been reduced by the amount of income for which the FIIs are charged.[9] This difference in tax rate for the short term capital gain and long term capital gain exists as the latter contributes more to the economics of the state. No deduction are offered to the gross income of the FIIs in respect of securities under section 28 to 44C or in clause (i) and (iii) of section 57 or under section 57 or under Chapter VI-A.[10] the first and the second g provisos of section 47 relating to the computation of charges will not apply in case of a transf er of the aforesaid securities by the FIIs. Any capital gains arising from transfer of long-term capital asset which is either equity shares or units of equity oriented shares shall be exempt from income-tax[11]. This is subject to any transaction relating to the sale of securities on which the securities transaction tax (hereinafter referred as STT) is applicable.[12] As per new STT the short-term capital gains is taxable at the rate of 10%.[13]. It also envisages that neither deduction under Chapter VI can be claimed nor the rebate under section 88 be claimed. Thus after 2005 for short term transaction of securities 10% tax is charged either under section 111 A or 115 AD. Section 196 D elaborates that where an income in respect of securities referred to in section 115 is payable to a Foreign institutional investors, the person responsible for making the payment shall deduce income tax at the rate of 20 percent at the time of credit of such income to the account of the payee or at the time of the payment thereof in cash or y issue of a cheque or draft or any other mode. FIIs can enter into transactions relating to the securities or by entering in to derivate contracts. Derivative contracts are bilateral contracts which determine the content of obligation from a reference value. The performance of the contract is done in future. The reference value of the derivate contract can be anything starting from a real economy to any future event. In Indian the extent of these derivates contracts are regulated by SEBI and RBI and take place through a registered intermediary, like stock exchange board of India.[14] Thus this is a very important financial tool which is used by the FIIs to invest into a country. As the obligation is based on a reference value the fluctuates in a very short interval of time and thus the income is only generated In respect of the purchase and sale of the derivate and not on dividend as is the case with the securities. Section 10 (38) exempts any income that arise out of the transfer of long term capital asset being an equity share in a company or unit of an equity oriented fund and section 115 AD charges 10 percent tax from the long term capital gain arising out of the transfer of securities. This give rise to two peculiar questions. Firstly, whether the securities are held as stock in trade or as capital assets of the FIIs and Secondly, whether they would attract the provision of section 115 AD or Section 10(38), or 111 A. This a determinative factor as the investor has various rate benefits and rates under various heads. In the case of 115 AD the FIIs would be taxed at the statutory rate in 10(38), full tax exemption and in 111 A partial exemption. The first question is important because it uses the term capital asset and thus creating a doubt on whether such exemption is applicable to securities as capital asset only or does it extent to securities held as stock in trade. The legislative intent behind s ection 115 AD would through light on the purpose for which such specific section for FIIs was enacted. This was to encourage more and more foreign investors to invest in India, to fix the tax rate and to establish certainty regarding the tax rates and thus allowing the investors to assess all possible variables before designing their investment strategy in India. The purpose of section 115 AD is to provide for special concessional rate of taxation in relation to securities received from or arising from the income of FIIs. There was no particular reason why the income on account of trading in securities was excluded from the purview of section 115 AD. The fact that the transfer of securities gave rise to capital gains was dealt with clause (b) was not a valid reason to hold that the transfer of securities in the course of trading in them was outside the ambit of section 115 AD.[15] Even though it cannot be denied that the securities held by the FIIs are held in nature of Stock in trade and thus should come under the head of profit and gain from business and profession but is such proposition is accepted than the purpose for which a special section was in acted would be defeated. Also it is a general principal of law that specific provision (Section 115 AD) are considered over the general provisions ( 10 (38) and 111 A) Thus securities held by the FIIs have to be considered not as stock in trade but as capital asset for them to fall under the ambit of section 115 AD and both long term and short term capital gain by the FIIs will be taxed under section 115 AD. In India a lot of investment is done by the FIIs from the countries that India has signed a Double Tax Avoidance treaty (DTAA) with. Generally there is always clause which provides that such investors will pay tax only in the country where they have a permanent establishment. Thus the provisions of section 115 AD will not be applicable with such investors. In XYZ/ABC Equity Fund,[16], there was a holding company in Mauritius. Its main business was to hold securities and selling them at profit. The capital had been raised from obtaining money by acquiring large block of shares in Indian companies (portfolio companies). The investment strategy was through investment advisors who were acting as the nominee directors in this portfolio companies .Thus the assessing officer charged income tax on the profit and gain from business and profession. It was contended that the sales from the proceeds resulted in the business receipt and not capital gains. It was argued that the presence of the nominee director in the portfolio company made those portfolio companies the PE of the holding company in India. The question was whether the capital gain arising from the transfer of securities held in an Indian company (the portfolio company) be taxable in India? and whether the FII have a PE in India ? The court held that the presence of the nominee director did not make those portfolio compan ies as PE of the holding company in India. Hence not taxable under the head of business and gain and under Article 5 of DTAA (double tax avoidance agreement) of India Mauritius , the provision of section 115 AD and 10 (38) will not be attracted. The reason why DTAA is given preference over 115 AD or 10 (38) is because of section 90 (2), which says that the provisions shall apply to the extent they are more beneficial to the tax payer. Hence when a situation arise where the applicability of one of the two is in question. DTAA will prevail as it is more beneficial to the taxpayer. There is no provision in the Income tax Act which taxes the income generated in derivative contracts. Derivative has been recognized as a security under Securities Contract (Regulation)Act Now the same question arises whether the income from derivative contract is taxed under Income from business and profession or under capital asset. There are two views in this regards: First was given in the Morgan Stanley international limited [17] case where it was pointed that in order to determine this it is imperative to determine the extent of trade that is undergone with respect to the asset. At times it is important to determine the intension of the party to put them under of the income heads. The intension is determined from their action,. i.e. the substantial nature of their transactions and the quantum of purchase and sale. Thus there is no set rule of whether transaction in derivative contracts will be taxed under capital gain or profit from business and profession. It has to be determined on case to case basis Second view was taken recently in the case of Platinum Investment management A.c Platinum International Fund v DDIT [18]where the tribunal taxed the income from transaction of derivatives as capital gain. It scrutinized the SEBI regulations 1995 with section 115 AD and laid that in light of the Memorandum explaining the provisions of the Finance Bill, 1993, a FII is allowed to invest only in securities and thus the income from securities as to taxed only under section 115 AD. It said that as derivative has been made part of the securities and the marginal note of Chapter XII in which section 115 AD falls reads determination of tax in special cases. Thus a special provision overrides the general provision. I further went on state that speculative transaction, under section 43 (5) does not have an application to the FIIs in regards to the securities mentioned in section 115 AD. It said that the variable of the speculation and non speculation does not play any role and the income for al l the aforementioned reason. Both the views are important, they are not contradictory, one leaves it on the fact so each case, and other instills certainty in the regards to the taxation of the derivative contracts. The second view favors the investor more as it categorizes all transactions of FIIs securities as investment transactions and not as business transactions which allows them to invest more in India as they have to pay less tax. Further whenever there is a question in regards of the applicable law, DTAA will prevail and FIIs will not be taxed in respect to the Derivatives contracts but where there is no DTAA signed with the Country to which the FII belong then it will be taxed under section 115 AD. European financial transaction tax A lesson can be learned from the EU which has come up with an extensive policy regarding the taxation of Financial transaction. This tax was brought to ensure that the financial institutions make a fair contribution to covering the cost of the recent crisis an d to ensure a level playing field with other sectors from taxation point of view. Under this tax the insurance contracts, mortgage lending, consumer credit and primary market transactions are excluded. Also currency transactions on spot markets are outside the scope of FTT, which preserves the free movement of capital. The scope of this tax is wide enough to incorporate instruments which are negotiable on the capital market, money market instruments, units and share in collective investment undertaking (including UCITS and alternative investment funds) and derivate agreements. It covers the over the counter trade. It is not only limited to the transfer of ownership but rather represents the obligation entered into. The definitions of financial instruments is wide and includes investment firms, organized markets, credit institutions, insurance and reinsurance undertaking and their managers, pension funds and their managers, holding companies financial leasing companies, special purpo se entities, and where possible refers to the definitions provided by the relevant EU legislation adopted for regulatory purpose. [19] Additionally other persons carrying out certain financial activities on a significant basis are considered to be financial institutions. [20] The principal of taxation in this residential principal, in order for the financial transaction to be taxable in the EU, one of the parties to the transaction needs to be established in the territory of the member state. Moment of chargeability is defined as the moment when the transaction occurs.[21] FTT is payable by each financial transaction institutions which fulfill any of the following conditions: It is a party to the transaction, acting either for its own account or for the account of another person It is acting in the mane of the party to the transaction The transaction has been carried out on its account. When one FI act s on the behalf of the account of another FI only that other financial institutions shall e liable to pay FTT. In case the transaction is carried out by electronic means the tax is due immediately at the time of chargeability.[22] Thus now when India looks at reforming it tax policies it is imperative that he lessons are drawn for the EU which ensures that tax is levied on the investors but the investors but they are not overburdened. There is some line that has to be drawn and it should be visible so that there is certainty in the market and the investors can access the market and its regulatory framework before they are investing into a country. In the globalized world today the importance of the FPIs cannot be undermined and if they decide to invest in India , it is symbiotic relationship that both share and till it can remain that not turn parasitic from either side, a healthy marker will flourish. The regulatory mechanism in our country screens a lot of investment strategy and the tax regime make is even worse. The tax regime as w e have understood does provide with incentive to the FIIs but there has always been confusion on what head they would taxed. That fosters uncertainty in the minds of the investors. Recently due to the change in government there was a lot a hope that India will be opening itself to the foreign investment and the unfriendly ground created by the Vodafone case will be cleared but the tax department has recently issued a notice to the portfolio companies that a minimum alternative tax shall be levied on them. Minimum alternative tax (MAT )is a tax that was levied on the companies and the firms who were earning a lot of profit but due to the various deductions and incentive were not paying proportionate tax. It is charges to some fixed rate on the books of account and it varies from companies to LLPs. The FPIs will be charges at the rate fo 20 % on ling term capital gain. India is one of the few countries in the world that levies tax on the non residents. This additional tax on the long term capital gain will disinterest the investors from investing into India.[23] FPIs before this notice pay zero tax for long capital gains but now it will change to 20 %, such an addition will surely hamper the already deteriorating investment attractiveness of India. As per the reports FPIs have been net buyers of 84, 988. 54 Crore in Indian equity market.[24] This projects the existing dichotomy within the government itself and reminds us that there is dire need to reform the tax system in India especially with respect to the FPIs. A [1] Article 7 [2] Morgan Stanley Co International Limited, 272 ITR 416. [3] Notification No. SO 282 (E)/ 31-3-95.Available at : // https://www.incometaxindia.gov.in/Pages/communications/notifications.aspx [4] Notification No: SO 199(E) / 22-1-2014. Available At : https://www.incometaxindia.gov.in/communications/notification/920110000000000014.pdf [5] Section 115 (O), Income tax Act, 1961. [6] Section 115AD (i) [7] Section 115AD(ii) [8] Section 115 AD (iii) [9] Section 115AD (iv) [10] Section 115 AD (2) (b) [11] Section 10 (38), Finance (No. 2) Act, 2004. [12] Chapter VII, Finance (No. 2) Act, 2004. [13] Section 111A, Finance (No. 2) Act, 2004. [14] Section 2(a) (a ), Securities contract Regulation Act, 1956. [15] Royal Bank of Cannada, IN re, (2010) 323 ITR 380 (AAR). [16] XYZ/ABC Equity Fund, (2001) 250 ITR 194 [17] Morgan Stanley Co. International Limited, (272 ITR 416). [18] Platinum Investment management A.C Platinum Int ernational Fund v DDIT ( ITA No 3598/ Mum / 2010 ). [19] Thornton Matheson, Taxing financial transactions: issues and evidence, 2011 IMF Working paer WP /11/54 . [20] Article 2(7), FTT [21] Article 4, FTT. [22] Article 10, FTT. [23] Bijal Ajinkya, partner Khaitan and Company, Business standard. ( 17 September 2014). Available At : https://www.business-standard.com/article/markets/fresh-tax-fears-loom-for-foreign-investors-114091601057_1.html [24] Business standard ( 17th September ) Available At : https://www.business-standard.com/article/markets/fresh-tax-fears-loom-for-foreign-investors-114091601057_1.html.

The Impact Of Internet On The Internet - 906 Words

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Organizations too can advertise their products on the internet and do not have to rely on older, traditional methods of advertising

Post Traumatic Stress Disorder in War Veterans Free Essays

string(33) " who served there suffered PTSD\." POST TRAUMATIC STRESS DISORDER IN WAR VETERANS SC-PNG-0000009299 Alwin Aanand Thomson American Degree Program SEGi College Penang 1. 0 INTRODUCTION Posttraumatic stress disorder (PTSD) is a severe anxiety disorder that can develop after exposure to any event that results in psychological trauma. This event may involve the threat of death to oneself or to someone else, or to one’s own or someone else’s physical, sexual, or psychological integrity, overwhelming the individual’s ability to cope. We will write a custom essay sample on Post Traumatic Stress Disorder in War Veterans or any similar topic only for you Order Now As an effect of psychological trauma, PTSD is less frequent and more enduring than the more commonly seen acute stress response. Diagnostic symptoms for PTSD include re-experiencing the original trauma(s) through flashbacks or nightmares, avoidance of stimuli associated with the trauma, and increased arousal—such as difficulty falling or staying asleep, anger, and hyper vigilance. Formal diagnostic criteria in DSM-IV-TR require that the symptoms last more than one month and cause significant impairment in social, occupational, or other important areas of functioning (American Psychological Association). . 0 DIAGNOSIS Criteria The diagnostic criteria for PTSD, stipulated in the Diagnostic and Statistical Manual of Mental Disorders IV (Text Revision) (DSM-IV-TR), may be summarized as: A: Exposure to a traumatic event This must have involved both (a) loss of â€Å"physical integrity†, or risk of serious injury or death, to self or others, and (b) a response to the event th at involved intense fear, horror, or helplessness (or in children, the response must involve disorganized or agitated behavior). The DSM-IV-TR criterion differs substantially from the previous DSM-III-R stressor criterion, which specified the traumatic event should be of a type that would cause â€Å"significant symptoms of distress in almost anyone,† and that the event was â€Å"outside the range of usual human experience. † B: Persistent re-experiencing One or more of these must be present in the victim: flashback memories, recurring distressing dreams, subjective re-experiencing of the traumatic event(s), or intense negative psychological or physiological response to any objective or subjective. C: Persistent avoidance and emotional numbing This involves a sufficient level of: †¢ avoidance of stimuli associated with the trauma, such as certain thoughts or feelings, or talking about the event(s); †¢ avoidance of behaviors, places, or people that might lead to distressing memories; †¢ inability to recall major parts of the trauma(s), or decreased involvement in significant life activities; †¢ decreased capacity (down to complete inability) to feel certain feelings; †¢ an expectation that one’s future will be somehow constrained in ways not normal to other people. D: Persistent symptoms of increased arousal not present before These are all physiological response issues, such as difficulty falling or staying asleep, or problems with anger, concentration, or hypervigilance. E: Duration of symptoms for more than 1 month If all other criteria are present, but 30 days have not elapsed, the individual is diagnosed with Acute stress disorder. F: Significant impairment The symptoms reported must lead to â€Å"clinically significant distress or impairment† of major domains of life activity, such as social relations, occupational activities, or other â€Å"important areas of functioning†. (DSM-IV-TR, American Psychiatric Assocation) . 0 PTSD IN WAR VETERANS 3. 1 Facts Figures Operation Iraqi Freedom has become the deadliest American military conflict since the Vietnam War. Uto 13 percent of the troops returning from the deployment have reported symptoms of post-traumatic stress disorder (PTSD). With the daily violence in this war torn country, service men and women are subjected to increased levels o f stress which can trigger PTSD. After fighting for their country and risking their lives, allowing them to return home only to be haunted by their actions degrades everything they were sent to Iraq to accomplish. Since the Vietnam War, methods of treating PTSD have developed and lowered the number of cases, but simply lowering the number of cases is not good enough. Unless service members can be prevented from experiencing these negative emotions, every one of them is engaged in a possible suicide mission. With the proper procedures introduced and carried out as proposed, not only the service members can be helped, but their families as well. Due to current operations in the Middle East and the recent combat operations in the past decade, many citizens have met somebody who has experienced their share of combat related stress. When you look at somebody who has been in combat, they may look like your average person on the outside, but on the inside lays memories of the violent scenes of war torn countries. Their mental health may not be noticeably altered, but they could very well suffer from haunting memories, flashbacks, and even post-traumatic stress disorder. Post-traumatic stress disorder (PTSD) can produce emotional responses caused by the trauma endured during combat operations. It does not have to emerge immediately, but can actually happen weeks, months, or even years after the traumatic event. PTSD was often referred to as â€Å"combat fatigue† or â€Å"shell shock† until 1980 when it was given the name post-traumatic stress disorder. According to William Welch of USA Today, PTSD is produced from a traumatic event that provoked intense fear, helplessness, or horror. The events are sometimes re-experienced through intrusive memories, nightmares, hallucinations, or flashbacks. Symptoms of PTSD include troubled sleep, irritability, anger, poor concentration, hyper vigilance, and exaggerated responses. Emotions felt by victims of PTSD include depression, detachment or estrangement, guilt, intense anxiety, panic, and other negative emotions (2005). Out of over 240,000 veterans of Iraq and Afghanistan already discharged from the service, nearly 13,000 have been in U. S. Department of Veterans Affairs (VA) counseling centers for readjustment problems and symptoms associated with PTSD (Welch, 2005). Operation Iraqi Freedom has become the deadliest American conflict since the Vietnam War and because of this, new data detailed by Cep79m. v shows that 12 to 13 percent of troops returning from Iraq reported PTSD symptoms while about 3 to 4 percent reported other mental distress. A new Army study found that 11 percent of troops returning from Afghanistan reported symptoms of mental distress. Although wartime psychology was just beginning during the Vietnam War era, later studies showed that nearly 15 percent of troops who served there suffered PTSD. You read "Post Traumatic Stress Disorder in War Veterans" in category "Essay examples" The most recent studies found that nearly 30 percent of the Vietnam War veterans have developed physiological problems after returning from the war. PTSD estimates for veterans of the first Gulf War range between 2 and 10 percent (2004). These numbers are based on several key factors. The amount of combat related stress varies by unit and will determine the amount of emotional stress a soldier in that particular unit will experience. For example, according to The New England Journal of Medicine, out of 1709 Soldiers and Marines surveyed, those who returned from Iraq reported higher rates of combat experience and frequency than those returning from Afghanistan. It’s probable that those who experience more combat situations are more likely to suffer to PTSD. As noted in The New England Journal of Medicine, out of those surveyed, 71 to 86 percent deployed to Iraq reported engaging in a firefight as apposed to only 31 percent in Afghanistan. Soldiers and Marines returning from Iraq were significantly more likely to report that they were currently experiencing a mental health problem, were interested in receiving help for their mental problems, and actually used mental health services (Hoge et al, 2004). As noted earlier, according to William Welch of USA Today, PTSD is produced from a traumatic event that provoked intense fear, helplessness, or horror (2005). Being wounded while in combat is a perfect example of an event which provokes intense fear. Among those who participated in a recent survey, 11. 6 percent reported being wounded or injured while in Iraq compared to 4. 6 percent of those in Afghanistan (Hoge et al, 2004). This is a clear indication that the events a soldier experiences during deployment will have influence on the possibility of PTSD after redeploying to the United States. Intense situations do not revolve around being wounded or injured. Operation Iraqi Freedom has become the deadliest American conflict since the Vietnam War. As a result, CNN notes that 90 percent of those who served in Iraq reported being shot at. A high percentage also reported killing an enemy combatant, or knowing somebody who was injured or killed. Approximately half said they handled a body while serving in Iraq (2004). In addition to CNN’s article, Cep79m. tv announced amazing data showing one in four Marines reported killing an Iraqi civilian while one in four Army soldiers reported engaging in hand-to-hand combat. More than 85 percent of those surveyed know somebody who has been injured or killed. More than half claimed handling corpses or human remains (2004). 3. Treatment and Prevention There is help available to those returning from the war torn countries. Almost 17 percent of the troops surveyed, who served in Iraq, suffered mental health problems while less than half of them have looked for professional help after ending their tours (Cep79m. tv, 2004). Sergeant First Class (SFC) Doug Sample of the American Forces Pres s Service reports that â€Å"service members can get confidential counseling through the military services’ ‘One Source’ program. The 24-hour-a-day service is for service members and their families, and provides quick, professional assistance with problems† (2004). The reason only half of them are seeking help could be the possibility of negative attention from their unit. Dr. William Winkenwerder says that a main barrier preventing soldiers from getting help â€Å"is the perception of stigma that some individuals have about coming forward to get that care and counseling† (Gilmore, 2004). CNN interviewed Staff Sergeant (SSG) Georg-Andreas Pogany who saw an Iraqi body which had suffered severe trauma on his second day in Iraq. Suffering from a nervous breakdown and struggling to sleep that night, he decided to tell his superior officer. He was afraid he would freeze up on patrol and was worried about the consequences. Instead of being given help, he was told to reconsider his concerns for the sake of his career. A translator attached to the 10th Special Forces Group was sent back and charged with cowardice after experiencing the same type of emotional stress. Though his charge was dropped, his record is still uncertain (2004). Post-traumatic stress disorder may not be preventable in every individual who steps foot inside a combat zone, but things can be done to lower the number of cases which occur after deploying. The army, for example, works under a â€Å"tough and realistic training† motto. They train their soldiers during peacetime as if they were actually in a combat zone. Live-fire ranges along with tough and realistic training have helped soldiers prepare for combat and the numbers developed from the data is surprisingly low. But that doesn’t surprise many people because according to Gilmore, they have used information from former prisoners of wars to help train today’s service members to be ready for combat (2004). The military works on a schedule allowing units to use live fire ranges at certain times with a certain number of live rounds. A possibility to help lower the amount of PTSD cases related to intense combat situations would be allowing soldiers to use live fire ranges more often. If this means raising taxes a little more to allow for a larger budget, then by all means, it’s worth it. Before, during, and after deployment, service members are given counseling sessions to prepare them for intense situations as well as teaching them about the possibility of mental health damage. This has been a change since the Vietnam War, which could be another factor which has helped lower the amount of PTSD cases throughout the military. Another possible solution to PTSD would be to brief soldiers throughout their entire career. Before Operation Enduring Freedom, it had been nearly 10 years since the last major conflict which involved ground forces. In those 10 years, if soldiers were given briefings on the possibility of mental health damage after combat, there is a chance they would have been more prepared to deal with those situations. The Department of Defense could easily make it mandatory that each service member receives several briefings each year during their entire military career to include during deployments. Citing recent Centers for Disease Control and Prevention research, Winkenwerder noted some people seem more predisposed to develop depression, anxiety, or post-traumatic stress disorders as a result of negative childhood experiences† (Gilmore, 2004). Apparently, the better the life a child has while growing up, the more ready for combat they will be. The Department of Defense requires each appl icant for the armed forces to take a test which allows them to qualify for a certain job within the military. Another possibility would be adding a section to the test which measures the type of childhood an applicant experienced. They could then choose only those who did not have many negative childhood experiences, if that statement is at all accurate, to fill their combat oriented positions. 4. 0CONCLUSION According to the data gathered during recent surveys, it is clear that although the violence of war will remain the same, it is possible to lower the percentage of service members who experience mental disturbance such as post-traumatic stress disorder from combat situations. It may be impossible o completely rid the volunteer force of the possibility of PTSD, but with enough counseling before, during, and after combat operations, the percentage of those who suffer from it may be lowered dramatically. More tough and realistic training will also help set soldiers into the mindset of what it takes to survive a combat situation. The treatment and prevention is there, but does not seem to b e used quite enough. Not using the prevention methods is almost like sending our troops on a suicide mission. Cep79m. tv, (2004, July 1). Soldier Mental Illness Hits Vietnam Level. Retrieved April 6, 2012 from http://www. cep79m. v/soldiermentalillness. htm (http://www. cep79m. tv/soldiermentalillness. htm) CNN, (2004, July 1). Combat stress: The war within. Retrieved April 10, 2012 from http://www. cnn. com/2004/HEALTH/07/01/post. traumatic. stress/ (http://www. cnn. com/2004/HEALTH/07/01/post. traumatic. stress/) Gilmore, G. , (2004, July 1). Combat Degrades Some Troops’ Mental Health, Report Says. Retrieved April 16, 2012 from http://www. defenselink. mil/news/Jul2004/n07012004_2004070106. html (http://www. defenselink. mil/news/Jul2004/n07012004_2004070106. html) Welch, W. , (2005, February 28). Trauma of Iraq War Haunting Thousands Returning Home. Retrieved April 16, 2012 from http://www. commondreams. org/cgi-bin/print. cgi? file=/headlines05/0228-01. htm (http://www. commondreams. org/cgi-bin/print. cgi? file=/headlines05/0228-01. htm) NIMH  · Post Traumatic Stress Disorder Research Fact Sheet†. National Institutes of Mental Health. Retrieved April 16, 2012 from http://www. nimh. org/ptsdfactsheet/ A soldier carrying his wounded compatriot Smoking as a common stress reliever among soldiers. Traumatic flashback occurring on duty. Anti-depressants are common among veterans. Traumatic enough to bring the toughest of men to tears. How to cite Post Traumatic Stress Disorder in War Veterans, Essay examples