corporate tax planning case study

TAX PLANNING CASE STUDY

Maximizing Tax Returns As An Integral Part Of  Comprehensive Financial Planning

When engaging with new clients we have found that they are commonly missing substantial tax saving opportunities because their previous the tax preparer’s approach can be too simple.

Clearstead is able to review a client’s portfolio: drilling down and picking apart every aspect of a client’s finances to find ways to leverage and build income. As part of our process, Clearstead’s tax specialists look at prior tax returns to determine whether a more comprehensive planning and compliance plan could benefit a client. By untangling prior filings, Clearstead could identify undetected savings.

IN SOME CASES WE HAVE OPPORTUNITIES TO EXCLUDE INCOME FROM TAXES IMPOSED BY THE AFFORDABLE CARE ACT.  THIS CAN BE AN AREA WHERE PRIVATE EQUITY CLIENTS FREQUENTLY PAY SIGNIFICANT TAXES ON INCOME GENERATED FROM THEIR FIRMS.

By implementing filing strategies that minimize taxes, our clients can potentially keep more assets in their accounts and reduce the amount investments they have to sell to pay taxes. It’s an example of how our firm’s comprehensive, service-focused approach can benefit clients and captures opportunities that can go undetected when different financial planning functions – especially taxes – are outsourced.

Here’s a look at other hidden opportunities and ways our team’s efforts can benefit our clients: 

Amended Tax Returns

Other hidden opportunities might include the small business stock capital gains exclusion. In these situations, a client might invest in a small C corporation, hold it for a period of time, and then sell the stock. The IRS code allows for exclusions of 50 to 100 percent of that gain depending on when it was bought and when it was sold. This type of analysis could create savings worth thousands of dollars by amending tax returns.

Income Deductions

Another frequently overlooked opportunity is the Ohio Business Income Deduction. In some situations, Clearstead has identified wage income that qualifies for the deduction but was not excluded in tax returns by the client’s previous accountant.

New Tax Code Deductions

With changes to the tax code enacted in December 2017, the Clearstead team is busy analyzing optimal positioning for clients, such as the 20 percent deduction for pass-through income. Already, Clearstead has identified opportunities under the increased estate tax exclusion to bring assets back into the estate and potentially give clients a stepped-up basis in assets and reduce unrealized capital gains. This strategy could save thousands of dollars in unnecessary tax payments.

We are also looking at itemized deductions that will be lost under the new tax code and creating strategies to help offset those losses.

Tax planning

While all CPAs will prepare quarterly tax estimates for clients, Clearstead prides itself on diving deeper into details. Throughout the year, we are analyzing data, talking to our clients, and working on ways to minimize tax payments. It is a continuous process, and the tax return is a byproduct of a yearlong analysis. But the only way to truly maximize these returns is to have a full understanding of the client’s financial portfolio, which is where Clearstead – and its clients – have realized their greatest success.

YOUR FUTURE IN FOCUS

At Clearstead, we create integrated, prudent, and custom strategies that bring clarity to you or your organization’s financial future.

Clearstead is an independent financial advisory firm serving wealthy families and leading institutions across the country. As a fiduciary, it provides wealth management services and investment consulting to help clients meet their financial objectives, achieve their aspirations, and build stronger futures.

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Taxmann's Corporate Tax Planning & Business Tax Procedures with Case Studies [Finance Act 2023] – Lawfully minimise the current and future tax liability with this 'go-to-guide' Paperback – 29 August 2023

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• Tax Planning
• Management Students
• Professional Consultants
• Officers in the Tax Department
• Taxpayers who want to familiarise themselves with different techniques to lawfully minimise their current and future tax liability
• The book is structured in three parts, namely: o Part 1 covers provisions of Indian Income Tax Laws in brief o Part 2 covers Corporate Tax in India, Tax Planning Concepts and Various Tax Planning Devices . Detailed provisions with respect to Non-Residents and Business Restructuring Practices prevalent in India are also given o Part 3 covers Business Tax Procedures & Management , with specific details on concepts like Advance Tax, TDS, Interest, Return Assessment, Penalties, Settlement Commission and Search Provisions
• [Multiple Choice Question] have been included at the end of each chapter for better clarity of thought and quick revision
• [Teach-Yourself-Technique] enables the reader to grasp issues without any further assistance
• [Well-Thought-Out-Original-Problems] are included along with analytical discussions on each para with distinct numbers
• This book is amended as per the following: o Law stated in this book is amended by the Finance Act 2023 o The legal position stated in this book is amended up to 1st August 2023 o The law applicable for the assessment years 2023-24 and 2024-25 is given § Tax planning problems/case studies are based upon the law applicable for the assessment year 2024-25 § Other practical problems are solved as per the law applicable for the assessment year 2023-24
• Income-tax Law in Brief
• Corporate Tax Planning o Tax Planning, Tax Management, Tax Avoidance, Tax Evasion o Corporate Tax in India § Definitions § Residential Status and Tax Incidence § Taxation of Companies o Tax Planning with Reference to Specific Business Decisions § Tax Planning with Reference to New Business – Location of a Business § Tax Planning with Reference to New Business – Nature of Business § Tax Planning with Reference to New Business – Form of Organisation § Tax Planning with Reference to Financial Management Decisions § Tax Planning with Reference to Managerial Decisions § Tax Planning in Respect of Employees' Remuneration § Tax Planning with Reference to the Sale of Scientific Research Assets § Tax Planning with Reference to Receipt of Insurance Compensation § Tax Planning with Reference to Distribution of Assets by Companies in Liquidation o Non-Resident § Tax Planning in Respect of Non-Resident § Double-Taxation Relief § Transfer Pricing § Advance Rulings for Non-Residents o Business Restructuring § Restructuring Business § Amalgamation § Demerger § Conversion of Sole Proprietary Business or Firm into Company § Slump Sale § Transfer of Assets between Holding and Subsidiary Companies § Conversion of Company into Limited Liability Partnership
• Business Tax Procedure and Management o Advance Tax, TDS and Interest § Advance Payment of Tax § Deduction/Collection of Tax at Source and e-TDS Returns § Interest Payable by Assessee/Government § Refund of Excess Payments o Return, Assessment, Penalties, Settlement Commission and Search § Return/Assessment of Income § Appeals, Revisions, References § Penalties and Prosecution § Settlement Commission and Dispute Resolution Committee § Search, Seizure and Assessment
• ISBN-10 9357784152
• ISBN-13 978-9357784153
• Edition 27th Edition | August 2023
• Publisher Taxmann
• Publication date 29 August 2023
• Language English
• Dimensions 27.94 x 25.4 x 2.54 cm
• Print length 524 pages
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• Publisher ‏ : ‎ Taxmann; 27th Edition | August 2023 (29 August 2023); Taxmann Publications Private Limited, 59/32, New Rohtak Road, New Delhi-110005, Email Id: [email protected], Phone Number: 011-45562222
• Language ‏ : ‎ English
• Paperback ‏ : ‎ 524 pages
• ISBN-10 ‏ : ‎ 9357784152
• ISBN-13 ‏ : ‎ 978-9357784153
• Item Weight ‏ : ‎ 855 g
• Dimensions ‏ : ‎ 27.94 x 25.4 x 2.54 cm
• Country of Origin ‏ : ‎ India
• Net Quantity ‏ : ‎ 1 Count
• Packer ‏ : ‎ Taxmann Publications Private Limited, 59/32, New Rohtak Road, New Delhi-110005, Email Id: [email protected], Phone Number: 011-45562222
• Generic Name ‏ : ‎ Undergraduate 2023 Books, Post Graduate 2023 Books, B.Com Latest Books, MBA 2023 Books, M.Com 2023 Books, Professional Examination Study Material, M.Com Study Material, MBA Study Material, Corporate Tax Planning, Direct Tax Laws Commentary, Direct Tax Laws Books, Income tax Act, Tax Planning, Tax Management, Income Tax Return, Income Tax Assessment, Income Tax Search
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• 15 Dec 2020
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Corporate Tax Cuts Don't Increase Middle Class Incomes

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Corporate Tax Cuts Increase Income Inequality

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Strategic Reactions in Corporate Tax Planning

We find that firms’ tax planning exhibits strategic reactions: firms respond to changes in their industry-competitors’ tax planning by changing their own tax planning in the same direction. We document evidence of these strategic reactions in two distinct research settings that entail an exogenous increase and decrease in competitors’ tax planning. We also find evidence that strategic reactions stem from concerns about appearing more tax aggressive than industry competitors, some evidence that they stem from firms learning from the tax planning of their industry competitors, and no consistent evidence that they stem from leader-follower dynamics.

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PwC Tax Case Studies

The PwC Tax Case Studies provide students with realistic fact situations in which a number of tax problems and opportunities can be identified. The cases include prospective as well as completed business transactions, so that students can incorporate a certain amount of tax planning into their solutions. The case studies cover various topical areas, summarized in the index, typically encountered in a second university tax course, or in a business-school graduate tax program. Law-school and LLM-Taxation students also find the cases to be a useful integrative exercise, although they often take a different approach to the issues and deliverables than do their business-school counterparts. For more information, please review the introduction and index document . To request the detailed PwC Tax Case Study materials, click  here .

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Corporate tax avoidance: a systematic literature review and future research directions

LBS Journal of Management & Research

ISSN : 0972-8031

Article publication date: 28 June 2023

Issue publication date: 3 November 2023

The increased interest among academicians to explore more about tax management behavior is evident in the literature on corporate tax avoidance. This paper aims to illustrate the multiple aspects that influence the tax avoidance behavior of corporations and its impacts through the systematic review method.

Design/methodology/approach

This study used “Tax Avoidance” OR “Tax Aggressiveness” OR “Tax Planning” as search strings to extract the relevant literature from the Scopus database. This study is a comprehensive analysis of existing literature on corporate tax avoidance behavior. Further, the keyword network analysis has been used to find out the most explored and dry research areas related to corporate tax avoidance behavior using VOSviewer software.

The study finds that taxation decision is an important managerial decision. Managers adopt tax avoidance tactics to boost postax profits to meet the shareholders’ expectations, particularly of risk-averse shareholders, and sometimes for their benefit also. With this, this study also finds that firms’ characteristics, political connections and corporate social responsibility activities also impact taxation decisions. In addition, the study identifies that tax-avoiding behavior has a contradictory impact on firm value, market growth and corporate transparency disclosure decisions.

Research limitations/implications

The study assists the researchers by providing a brief overview of tax avoidance behavior, for corporates in understanding the implications of tax avoidance, and for policymakers to fix the taxation loopholes and bring necessary tax reforms.

Originality/value

This study adds to the existing literature by providing a thorough overview of theories, determinants and outcomes of corporate tax avoidance behavior.

• Tax avoidance
• Tax management
• Tax planning

Duhoon, A. and Singh, M. (2023), "Corporate tax avoidance: a systematic literature review and future research directions", LBS Journal of Management & Research , Vol. 21 No. 2, pp. 197-217. https://doi.org/10.1108/LBSJMR-12-2022-0082

Emerald Publishing Limited

Copyright © 2023, Anshu Duhoon and Mohinder Singh

Published in LBS Journal of Management & Research . Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode

1. Introduction

Tax is the largest source of income for the government, and a major portion of it comes from direct taxes ( Gober & Burns, 1997 ). Corporate tax is a type of direct tax and it is the responsibility of the companies to make the payment of their fair share of tax to the government ( Rao & Chakraborty, 2010 ). The taxes are the fixed charge against the company’s profit and reduce the available distributed profit to the shareholders ( Putra, dwi, & Sriwedari, 2018 ).

Companies adopt acceptable (tax management) and non-acceptable (tax evasion) methods to reduce their tax liability ( Aliani, 2013 ). Tax avoidance is legal and is done by taking advantage of tax loopholes, in contrast, tax evasion violates taxation rules and is punishable and unacceptable ( Fisher, 2014 ).

Corporate tax avoidance is arising as a matter of public concern and getting researchers’ attention continuously ( Desai & Dharmapala, 2006 ; Hanlon & Heitzman, 2010 ; Huang, Ying, & Shen, 2018 ; Putra et al. , 2018 ). Tax avoidance activities are the result of privileges and reliefs provided by the government to the companies. Companies are adopting different techniques such as more investment in fixed assets, profit shifting to tax haven countries, base erosion, thin capitalization, IP structuring, etc., for reducing their tax liability ( Ey, 2014 ). Around $650bn in revenue has been lost by governments across the world due to the shifting of nearly 40% of total profits by multinational companies to tax haven countries.

There is not any universal definition of tax avoidance. The concept of tax avoidance has been defined by different authors in their own words, such as Hanlon and Heitzman (2010, p. 137) describe tax avoidance as “a continuum of tax planning strategies where perfectly legal activities are at one end, and more aggressive activities would be closer to the other end”, and Dyreng, Hanlon, and Maydew (2010) state that all financial transactions that lead to a reduction in tax liability reflect the tax avoidance behavior of the firm.

Tax avoidance is a legal way of reducing the tax burden ( Slemrod, 2004 ; Slemrod & Gillitzer, 2014 ). While tax evasion refers to the destruction of original documents, the production of fake financial statements, the alteration of original entries and any other activity that accounts for tax sheltering ( Gottschalk, 2010 ; Malkawi & Haloush, 2008 ). The available literature ( Foster Back, 2013 ; Lenz, 2020 ) states tax avoidance, tax management and tax planning are all simultaneous terms while tax evasion is an unlawful act of tax reduction. The firms having the following features are considered “low-tax” firms ( Figure 1 ).

The paper has been categorized into the following sections. The second section briefly explains the theories of corporate tax avoidance behavior and theoretical background of the study, the third section is related to research methodology, the fourth section is related to results, the fifth section is about keywords networking analysis and the last section reports the conclusion, implications and unexplored areas for further research.

2. Theories of corporate tax avoidance

Tax avoidance decisions are considered as the shifting of funds from the government to the businesses by legal means ( Khuong et al. , 2020 ). However, the adoption of tax avoidance behavior in an organization is influenced by (a) agency issues arising from the separation of management and shareholders, (b) social needs and (c) the legitimacy of tax avoidance decisions.

1. Traditional concept and agency theory

Traditional theory suggests that tax avoidance activities reduce tax liability and increase the shareholders’ value ( Boussaidi & Hamed-Sidhom, 2020 ; Nugroho & Agustia, 2017 ). While on the other hand, tax planning is considered the managers’ follow-up action, making tax reductions by not violating the taxation provisions ( Putra et al. , 2018 ). To avoid detection from taxation authorities, managers create sophisticated transactions for tax avoidance purposes. Managers use these transactions to hide their tax avoidance practices from the taxation authorities, but sometimes also for hiding from investors.

2. Social obligation approach

Tax avoidance behavior is considered a sign of irresponsible behavior toward society ( Hoi, Wu, & Zhang, 2013 ; Chircop, Fabrizi, Ipino, & Parbonetti, 2018 ). Slemrod (2004) explained that the firms with high corporate social responsibility (CSR) scores are more cautious about tax avoidance practices. These firms avoid tax-aggressive decisions because the detection of such behavior offsets the positive effects of CSR practices ( Lanis & Richardson, 2015 ) and also causes reputational damages to the firms ( Ortas & Gallego-Álvarez, 2020 ). In contrast, Landry, Deslandes, and Fortin (2013) and Mahon (2002) stated that corporate tax avoidance behavior leads to more tax administration penalties and reputational costs to the firm. CSR disclosure is considered a risk management function by the firms and is preferred to strengthen investors’ beliefs and community concern toward the firm performance ( Hanlon & Slemrod, 2009 ). More tax-avoiding firms disclose high CSR practices to hide such practices ( Abdelfattah & Aboud, 2020 ; Gras-Gil, Palacios Manzano, & Hernández Fernández, 2016 ).

3. Legitimacy approach

Like other taxpayers, it is also the right of the company to minimize its tax obligations but within the boundaries of the law ( Hasseldine & Morris, 2013 ; Whait, Christ, Ortas, & Burritt, 2018 ). Managers do not consider tax avoidance as unacceptable and enormous activity. Instead, it is a choice-based decision adopted for higher profits, status and high remuneration expectations ( Sikka, 2010 ). Tax avoidance decisions, on the other hand, have been subjected to a slew of criticisms. Transfer pricing schemes have been used by some big firms, like Apple, Starbucks and Google, to evade taxes ( Barford & Holt, 2013 ). Tax avoidance activities are considered inconsistent with societal expectations and create legitimacy risks for organizations ( Christensen & Murphy, 2004 ).

2.1 Theoretical framework

A review-based study is considered the relevant form of research because it addresses all research evidence related to a particular research area ( Baumeister & Leary, 1997 ; Murata, Wakabayashi, & Watanabe, 2014 ). The publications in the finance and accounting sectors have been selected for review purposes. Accounting scholars have a comparative advantage in reading and assessing income and expenditure measures from financial statements while financial literature deals with agency issues in the organization. Both of these theories are related to tax avoidance issues and are considered appropriate for review. By considering the significance of the review-based study, different authors have carried out the review-based study on tax avoidance behavior from different perspectives such as tax planning behavior of multinational enterprises ( Cooper & Nguyen, 2020 ; Wang, Xu, Sun, & Cullinan, 2020 ), family firms ( Khelil & Khlif, 2022 ), determinants ( Sritharan, Salawati, Sharon, & Syubaili, 2022 ), proxies ( Lee et al. , 2015 ), institutional ownership ( Putra et al. , 2019 ), CSR disclosure ( Jiang, Zhang, & Si, 2022 ) and corporate governance ( Kovermann & Velte, 2019 ). Still, there is a lack of work that gives a thorough overview of the factors that contribute to tax avoidance decisions in corporations. This study is the first thorough, in-depth systematic study to provide insight into the theories, causes and effects of corporate tax avoidance behavior.

3. Research methodology

To select the relevant literature, a comprehensive search was conducted in the Scopus database, the most extensive database consisting of peer-reviewed journals ( Cooper & Nguyen, 2020 ). “Tax Avoidance” OR “Tax Aggressiveness” OR “Tax Planning” were the three search keywords used to extract the relevant studies from the database and a total of 1345 records were identified in this stage. Then the authors applied the PRISMA approach for the selection of relevant papers ( Figure 2 ). PRISMA guidelines ensure the quality of selected papers and also address the misinterpretation issues in the reviewed articles ( Moher, Liberati, Tetzlaff, & Altman, 2009 ; Mengist, Soromessa, & Legese, 2020 ). Then, the research articles published in the English language in the Economics, Econometrics and Finance, and Business Management and Accounting domains were retained. This criterion limited the number of articles to 720. Case studies and conceptual papers were also excluded and finally 102 articles were considered for the systematic review.

A systematic review is a form of review analysis that is conducted to identify the research evidence to answer research questions and also to suggest the scope for policy framework and future research work ( Aromataris & Pearson, 2014 ; Darzi, Islam, Khursheed, & Bhat, 2023 ). For creating the keyword networking diagram, VOSviewer software has been used. VOSviewer software tool was created by Eck and Waltman in 2010 and is used for creating and exploring bibliometric maps ( Arruda, Silva, Lessa, Proença, & Bartholo, 2022 ).

4. Results of systematic analysis

This part is divided into two subsections, the first one explains the factors that contribute to tax avoidance and the second part describes the effects of such behavior ( Figure 3 ).

4.1 Factors affecting the corporate tax avoidance decisions

Factors that contribute to corporate tax avoidance have been grouped into seven categories, with each category having many subcategories. Table 1 displays the impact of corporate governance mechanisms on corporate tax avoidance practices and the impact of other identified factors in Table 2 .

1. Ownership pattern

The ownership structure is considered a significant predator of the tax avoidance behavior of the firm ( Hanlon & Heitzman, 2010 ). The impact of ownership structure on tax avoidance does not show consistency in the result. In concentrated ownership, majority shareholders exploit the tax-saving benefits at the expense of minority shareholders ( Ying, Wright, & Huang, 2017 ). Family-based firms are more engaged in tax avoidance than non-family-based firms because of higher ownership and more opportunities to seek high profit as they are the founding members ( Gaaya et al., 2017 ; Kovermann & Wendt, 2019 ; Supantri & Rahmiati, 2020 ; Ying et al. , 2017 ). In contrast to the above findings, Alkurdi and Mardini (2020 ), Bauweraerts, Vandernoot, and Buchet (2020 ), Landry et al. (2013 ), Moore, Suh, and Werner (2017 ), and Sánchez-Marín, Portillo-Navarro, and Clavel (2016 ) suggested that family firms are more concerned about their reputation and prefer to avoid tax aggressive decisions. Alkurdi and Mardini (2020 ), Khurana and Moser (2013 ), Resti Yulistia, Minovia, and Anison (2020 ), Wahab et al. (2017 ), and Ying et al. (2017 ) concluded that as the percentage of institutional ownership increases, the tax avoidance level starts to decline because of the better monitoring of managers’ performance. But Bird and Karolyi (2017) and Khan et al. (2017) suggest that an increment in institutional ownership results in more tax avoidance due to their concern about high market value. Insiders have voting rights in dual-class ownership, which implies less pressure from outsiders to use tax avoidance strategies ( McGuire, Wang, & Wilson, 2014 ). Bradshaw, Liao, and Ma (2019 ), Chan et al. (2013 ), Liu and Lee (2019 ), and Mafrolla (2019 ) stated that tax avoidance decisions generate short-term benefits for the company. But state-owned firms are more concerned with long-term goals than with profit maximization, indicating a negative attitude toward tax avoidance decisions.

2. Board components

The board’s efficiency varies depending on its independence, size, ethnicity, gender diversity, professional knowledge, etc. The presence of more independent directors reduces the likelihood of the adoption of tax avoidance behavior because of effective monitoring of boards’ tax minimization behavior ( Alkurdi & Mardini, 2020 ; Zaqeeba & Iskandar, 2020 ). Cho and Yoon (2020) suggested that religious diversity onboard has a significant impact on tax planning decisions. In comparison to concentrated board religion, boards with varied religions show a higher rate of tax avoidance. Gender diversity on board leads to less tax avoidance because feminine characteristics are associated with less risk-taking and more moral choices ( Francis, Hasan, Wu, & Yan, 2014 ; Richardson, Wang, & Zhang, 2016 ; Lanis, Richardson, & Taylor, 2017 ; Hoseini, Safari Gerayli, & Valiyan, 2019 ; Jarboui, Kachouri Ben Saad, & Riguen, 2020 ). Hoseini et al. (2019) claimed that large boards are less effective than small boards due to many perspectives in taking any decision. But chances of accounting fraud increase with the increment in board members ( Zemzem & Ftouhi, 2013 ) which lead to more tax avoidance.

3. Audit quality

Audit quality is an important element of corporate governance that reduces the conflicts between management and shareholders and prevents managers to indulge in fraudulent and accounting-manipulating activities ( Abdel-Wanis, 2021 ). Gaaya et al. (2017) claimed that the companies audited by the Big Four are less likely to participate in tax avoidance because of the risk of reputational cost and litigation cost, and adopt fair tax auditing practices. Similarly, the presence of more independent directors in the audit committee and audit tenure negatively impacts tax avoidance decisions. The presence of more independent auditors in the audit committee results in effective monitoring and less tax avoidance ( Deslandes, Fortin, & Landry, 2020 ). This study also stated that auditors with large tenure favor less tax-aggressive strategies due to having more in-depth knowledge of the company’s operations and more effectiveness in detecting tax-evading practices.

4. Compensation

Managerial ability is characterized as the better assessment of risk and return related to investment decisions ( Gober & Burns, 1997 ). The attitude of key personnel toward tax avoidance decisions could be affected by remuneration incentives ( Walsh & Ryan, 1997 ). Equity-based incentives align the interest of owners and agents and encourage management to undertake risky decisions such as tax avoidance to increase posttax income ( Taylor & Richardson, 2014 ). But, tax avoidance decisions with short-term benefits might have a long-term reputational damaging effect on the firm and such activities may bring additional costs to the firm such as penalties, auditing firms’ intervention, reputational damage, etc. ( Huang et al. , 2018 ; Sudirjo, 2020 ). In contrast to this, Phillips, Pincus, and Rego (2003) found the insignificant effect of CEO after-tax compensation on such decisions due to their unwillingness to take on additional compensation risk.

5. Corporate social responsibility (CSR) disclosure

Corporate actions have a substantial impact on local communities and civil society organizations ( Dyreng et al. , 2010 ). CSR practices are defined as all actions taken by companies to have a positive impact on the environment and society. Firms consider tax avoidance practices as socially irresponsible decisions and avoid such practices ( Gulzar et al. , 2018 ; Lanis & Richardson, 2015 ; López-González, Martínez-Ferrero, & García-Meca, 2019 ; Mao & Wu, 2019 ; Mao, 2019 ; Park, 2017 ). In contrast to these findings, Alsaadi (2020) and Arifin and Rahmiati (2020) found that firms also use the benefits of tax savings to fulfill their responsibility toward society and publicly display good CSR scores, safeguarding themselves from unfavorable consequences of such action in the event of detection ( Jiang, Zheng, & Wang, 2021 ; Zeng, 2019 ).

6. Firm characteristics

Firm characteristics have a significant impact on tax avoidance practices. The impact of tax-avoiding behavior on firm size has been explained through political cost and political power theory. Political power theory states that large-sized firms are more engaged in tax avoidance activities due to high economic and political power ( Sucahyo, Damayanti, Prabowo, & Supramono, 2020 ). While political cost theory ( Salman, 2018 ) states that large firms are under more pressure to disclose performance transparency to regulatory bodies compared to small-sized firms, which shows a negative attitude toward tax avoidance decisions. Contradictory to political power and political cost theory, Kismanah et al . (2018) concluded the insignificant relationship between tax avoidance and firm value. The firms use debt (leverage) in their capital structure as a tax shield because interest payable on debt is deductible expense before calculating tax liability ( Loney, 2015 ). The study ( Firmansyah & Bayuaji, 2019 ; Salman, 2018 ) found a positive relationship between tax avoidance and profitability. Firms with more fixed assets have a low effective tax rate (ETR) because depreciation on the fixed assets is allowable as a deductible expense from profit ( Salman, 2018 ). Large inventories enhance a company’s overall financial burden due to higher transportation, warehouse, maintenance and storage expenses and such decisions do not affect the companies’ tax burden ( Urrahmah & Mukti, 2021 ).

7. Political connections

Politically connected firms face the burden of disclosure transparency and official intervention and thus engage in more tax avoidance practices. These political connections provide special rights to the firms and firms adopt more tax-aggressive practices due to less audit risk ( Kim & Kim, 2016 ; Wahab et al. , 2017 ). Same in this regard, the study ( Resti Yulistia et al. , 2020 ) claimed that these political ties can assist businesses in easy access to government contracts but do not have any impact on tax avoidance decisions.

4.2 Consequences of tax avoidance decisions

The adoption of tax avoidance tactics may have many economic ramifications for businesses. The detection of illegal tax avoidance behavior results in lawsuits, penalties and a loss of reputation for the companies. Table 3 shows the probable outcomes of tax avoidance activity as extracted from the literature:

1. Stock market reaction

The stock market is significantly affected by the disclosure of tax management strategies. The market value of the company declines in case of the detection of any illegal tax managing practices ( Hanlon & Slemrod, 2009 ). The stock market reaction also depends on the news related to the legitimacy of tax minimization strategies. The stock market behaves negatively in case of tax evasion (illegal) news but there is no adverse reaction when the company is engaging in tax avoidance (legal) practices ( Blaufus et al., 2019 ).

2. Firm value

Two distinct viewpoints have been proposed based on existing literature to explain the influence of tax avoidance on corporate value. The tax-saving concept shows that tax avoidance decisions minimize the tax liability of the firm. As a result, the profit goes up, which positively impacts the firm value ( Lim, 2011 ; Abdul Wahab & Holland, 2012 ; Chyz, 2013 ; Guenther, Matsunaga, & Williams, 2017 ; Bimo, Prasetyo, & Susilandari, 2019 ; Li, Lu, & Li, 2019 ). While Park et al. (2016 ) stated that if there are not any incentive alignment contracts between managers and firms, then because of the rent extraction behavior of managers, tax avoidance decisions deteriorate the firm value.

3. Earning management

Frank, Lynch, and Rego (2009) and Kubick and Lockhart (2016) suggested that the increasing gap between taxable and book income could be the outcome of earning management decisions rather than tax-saving decisions. Earning management is the manipulation of financial statements to falsely report the high profits of the company for misleading investors and other related parties ( Madan & Bhasin, 2016 ). Putri, Rohman, and Chariri (2016) , Balakrishnan, Blouin, and Guay (2019) and Susanto et al. (2019) stated that the adoption of tax avoidance practices is mainly oriented toward earning management behavior.

4. Corporate transparency

Tax-avoiding activities increase the information complexities in organizations due to the adoption of tax-saving methods ( Drucker, 2023 ). Information asymmetry in financial disclosure increases when firms are engaged in tax-avoiding behavior ( Balakrishnan et al. , 2019 ). Companies resist disclosing more about their taxation strategies to avoid penalties in case of detection of any illegal practice by auditing firms.

5. Keyword network analysis

The term “keyword networking diagram” has been considered one of the important tools to find the most researched areas and also emphasizes the presence of patterns and trends in a particular field ( Goyal & Kumar, 2021 ). The enormous bubbles in Figure 4 represent the areas that have been thoroughly researched, while the small bubbles indicate the subjects that require further investigation. Thicker lines mean more frequent co-occurrences. The smaller the distance between the nodes, the stronger the relationship they have. Table 4 represents the number of research occurrences based on the keyword co-occurrence network, which identified 266 keywords in 102 research articles. Tax avoidance is the most frequently used keyword with 82 occurrences, tax aggressiveness with 34 occurrences, tax planning with 6 occurrences and tax management with 3 occurrences. This demonstrates that authors have considered the terms “Tax Avoidance”, “Tax Aggressiveness”, “Tax Management” and “Tax Planning” interchangeably.

6. Conclusion

Tax avoidance is defined as the legal “transfer of revenue” from the government to corporations. This saved income could be utilized by firms for productive purposes and could be exploited by managers for personal gain at the expense of investors. It has been observed that agency theory significantly affects managers’ tax planning decisions. Managers feel pressured because of the high expectations of owners, especially from riskless shareholders and adopt tax avoidance strategies to improve posttax income to fulfill the owners’ expectations, and sometimes for their benefit.

The reviewed literature shows that the effect of various ownership structure forms on tax-avoiding behavior has unpredictable outcomes. The study finds that institutional investors put some of their money into other businesses in the hopes of earning dividends and profits, which shows a positive attitude toward tax management decisions. The literature reveals family firms are more concerned about their reputation in society, which affects their tax-avoiding behavior. The attitude of state-owned firms was found to be negative toward tax-avoiding decisions, because of their concern toward securing the government revenue. The study also reveals that firms are more likely to employ tax avoidance tactics when equity incentives are offered to executives.

The effect of corporate governance on firms’ tax-sheltering practices is also explored in this study. The percentage of independent directors, gender diversity, board size and audit quality parameters have been used for evaluating the impact of corporate governance frameworks on tax avoidance behavior. The presence of more independent directors on the board is linked to effective monitoring and better control, which can limit tax-sheltering decisions. Gender diversity on boards shows a negative attitude toward managing the tax aggressively due to the risk-averse behavior of the women. Smaller boards are considered more effective than larger boards due to fewer communication and coordination problems, however, the influence of board size on tax sheltering behavior is not always consistent. This study also suggests that auditing by Big Four auditing firms reduces the possibility of a firm’s engagement in earnings manipulation. Other than corporate governance mechanisms, tax avoidance decisions are also affected by various firm characteristics such as the use of leverage capital, the use of capital-intensive products, and firm size as explained in the existing literature. Companies usually benefit from the advantage of using debt to finance operations which is in the form of a debt tax shield. A company’s investment in fixed assets is referred to as capital intensity and charged depreciation on these assets is a deductible expense which further reduces the tax liability of the firm.

Tax avoidance behavior is considered a sign of irresponsible behavior toward society, the literature states that firms with high CSR scores are more cautious about tax avoidance practices. These firms avoid tax-aggressive decisions because the detection of such behavior offsets the positive effects of CSR practices and also causes reputational damages to the firm. On the other hand, some studies claim that firm with more tax avoidance practices discloses high CSR score to show a positive attitude toward their social responsibilities, which means that there is no stable relationship between firm tax avoidance practices and CSR score.

The associated costs and advantages of such decisions affect shareholder perceptions of the tax avoidance strategies of the firms. If any firm is found to be engaged in illegal tax avoidance by auditing firms, it will have to pay a penalty as imposed by taxation authorities. When such behavior is discovered, the firms’ reputations are also harmed, which causes share values to drop. Also, tax-aggressive firms have a less transparent information environment and do not disclose all information related to their tax management strategies.

Keyword network shows that the three terms, “Tax Planning”, “Tax Avoidance” and “Tax Aggressiveness”, have been used in the same context in the existing literature. This networking map also suggests that board gender diversity, board size, market reaction, disclosure transparency, capital market pressure, social capital and executive compensation have not been explored in-depth and can be regarded as emerging avenues for future research.

7. Practical and theoretical implications

This study provides an overview of the factors that contribute to tax-avoiding practices. This study is helpful to corporates to understand the effect of tax-saving decisions on their performance. This study is useful to the policymakers to understand the different practices adopted by the firms for reducing their taxation and liabilities and also to formulate policies for fixing these gaps. This systematic study can add greater clarity to other review analyses such as the bibliometric review method and meta-analyses, as well as to empirical studies.

8. Scope for future research

This study provides a thorough coverage of existing literature on corporate tax avoidance and is helpful for new researchers who want to understand this concept and also for those who are looking to explore new directions in the same field. One of the major issues that academicians confront when conducting a study on corporate tax avoidance is related to its measurement. The actual picture of overall tax avoidance by various firms can be obtained either from taxation authority or by the tax returns filed by the company, which in both cases is difficult to obtain. Salihu, Obid, and Annuar (2013 ), in their study on corporate tax avoidance measures, conclude that the availability of data and predetermined objectives of the study influence the choice of tax avoidance measures. This study is focused on identifying causes and outcomes of corporate tax avoidance behavior, with no discussion on tax avoidance assessment methodologies. To gain a better knowledge of firms’ tax avoidance behavior, measurement techniques for tax avoidance practices could be investigated further. The articles published only in the Scopus database were used for review purpose, which limits the generalization of the findings. So, future consideration of other databases such as “EBESCO”, “Web of Science”, “Google Scholar” or “Dimensions” can be significant to explore new directions related to corporate tax avoidance behavior.

Identified predictors

PRISMA framework

Determinants and consequences of corporate tax avoidance behavior

Keywords co-occurrence network

Effects of corporate governance components on corporate tax avoidance

Source(s): Authors’ own compilation

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Further reading

Adedeji , A. ( 1997 ). Discussion of agency and tax explanations of security issuance decisions . Journal of Business Finance and Accounting , 24 ( 7-8 ), 963 – 969 . doi: 10.1111/1468-5957.00145 .

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Farooq , O. , & Zaher , A. A. ( 2020 ). Ownership structure and tax avoidance: Evidence from indian smes . Review of Pacific Basin Financial Markets and Policies , 23 ( 2 ). doi: 10.1142/S0219091520500125 .

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Acknowledgements

The authors gratefully thank the constructive comments and suggestions from the editor and anonymous reviewers.

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Case Studies in International Tax Planning

Tax 661 for master students.

For further information please contact Inga Schulz .

Course Details

The course is recommended for first year Master-level students with general knowledge in international taxation or second year Master-level students. The course is open to students enrolled in the Master in Management (MSc.) program as well as in the LLM program and others. There are no formal prerequisites, however knowledge of the contents of modules TAX 530, TAX 630 (and TAX 670) is recommended. The course is taught in English and is thus also open to exchange students.

The content and objectives of the course cover a practically oriented understanding of the complex structures of international tax planning. The course is largely organized in the form of case studies, with which the possibilities of international tax planning are presented and discussed in a systematic manner. In the first part, the course covers the basics of international tax planning and tax structuring (inbound and outbound cases). The second part deals with anti-avoidance rules such as the German “Interest deduction limitation” and analyzes qualification conflicts.

Learning outcomes:

• Applying theoretical knowledge of international taxation to real life case studies
• Deepening the knowledge of international tax planning
• Developing strategies for international tax planning and tax structures

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Corporate Income Tax—India Case Study

• First Online: 10 April 2021

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• Parthasarathi Shome 3 , 4  

Part of the book series: Springer Texts in Business and Economics ((STBE))

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A corporation is a separate and independent legal person from its shareholders. Corporate tax is paid on the net profit made from business by corporations. Corporate income is taxed at a specific rate prescribed under the Indian Income-tax Act (the law). Indian and foreign companies are both liable to pay corporate tax. An Indian company is registered under the Indian Companies Act and includes corporations established under central or provincial acts. A domestic company includes private and public companies. A foreign company is one which is incorporated in any foreign country. Companies are taxed based on their residential status. A company is resident for tax purposes if it is incorporated in India or if its place of effective management (POEM) is in India during the relevant fiscal year. POEM is a place where key management and commercial decisions for the conduct of business are made in substance. A resident company is taxed on its global income. A non-resident company is taxed on Indian income accrued or received in India. The scope of Indian income is defined under the law. These matters are addressed in this chapter. Deductions, amortisation, maintenance of accounts and audits, and presumptive taxation are also examined.

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Non-compete payments refer to ‘any sum received or receivable under an agreement for not sharing any know how, patent, copyright, trade mark, licence, franchise or any other business or commercial right of similar nature or information or technique likely to assist in the manufacture or processing of goods or provision for services and is chargeable to tax as business income’ (Taxmann 2016–17 ).

In the case of Kedarnath Jute Mfg. Co. Ltd. vs. CIT. 83 ITR 363 (1971).

The expenditure under this section, although allowed on payment basis, should be otherwise allowable under the provisions of the law. For example, expenditure such as interest payment or PF payment should not be allowed only because it is covered under this section. It should be first allowable under the head of business income based on it being an expenditure incurred for earning the income. The condition of actual payment being made is above the basic condition of allowability of expenditure.

Note that debts are primarily receivables and on accrual basis included in the income. This implies that only those debts, if declared bad, can be allowed as a deduction if earlier they were included in the income on accrual basis. Thus, the deduction for bad debts written off can be allowed only if it had been included in the business income.

For descriptions of STT and CTT, see Chap. 17 , Sect. 17.5 .

Rs. 10 million equals approximately UK £ 0.1 million. With effect from Assessment Year 2020–2021 (Financial Year 2019–2020), the threshold limit for tax audit under Section 44AB(a) for a person carrying on business has been increased from Rs. 10 million to Rs. 50 million in cases where the aggregate cash receipts and aggregate cash payments made during the year does not exceed 5 per cent of total receipt and total payment, respectively. In other words, more than 95 per cent of the business transactions should be carried out through banking channels in order to avoid tax audit.

To promote digital transactions and to encourage small unorganized business accept digital payments, Section 44AD has been amended with effect from the assessment year 2017–2018 to provide that income shall be computed at the rate of 6% instead of 8% if the turnover/gross receipt is received by account payee cheque or account payee bank draft or by use of electronic clearing system through a bank account or through prescribed electronic modes.

Taxmann. 2016–17. Taxation of Non-compete Fees and Exclusivity Rights in Case of Profession . https://www.taxmann.com/budget-2016-17/budget/samd313/memorandum.aspx . Accessed 23 Sep 2020.

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London School of Economics, London, UK

Parthasarathi Shome

International Tax Research and Analysis Foundation, Bengaluru, India

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Shome, P. (2021). Corporate Income Tax—India Case Study. In: Taxation History, Theory, Law and Administration. Springer Texts in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-030-68214-9_19

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Corporate Tax Planning: Meaning, Objective, Types, Advantages and Limitations

Meaning of corporate tax.

Income earned by a person (who comes under the threshold limit) is taxable under the Income Tax Act 1961. A person liable to pay tax has to find out the best way to make use of the deductions available to him. The planning done by the person to reduce his tax liability by making use of the allowances, deductions and other privileges available to him is known as tax planning.

Every business registered under The Companies Act, 2013 is mandatorily liable to pay the tax accrued to them. The companies have different deductions and provisions which are available to them. The process of analysing all the provisions to reduce tax liability is called Corporate Tax Planning.

Understanding Corporate tax

In simple words, corporate tax planning is the plan laid out by the companies to reduce the tax liability accrued to them by making the optimum use of the different provisions and deductions available to them. This process of tax planning is inevitable in a corporate entity. It minimises the obligation to pay tax to the government with the help of different advantages given to the corporate by the government. For those who have confusions let us make it clear. The business set up in SEZ is free from majority of the tax payable to the government. Even though they are liable to pay taxes to the government they make use of the advantage of working in the SEZ to avoid the burden of paying taxes. Did you understand the concept?

It might be a little difficult to understand the corporate measures taken by the company to reduce the tax because it is a result of continuous efforts and study that take part in the organisation.

We said corporate tax planning is an inevitable process in an organisation. Can’t a company survive without tax planning? The answer to the question is no. Tax planning is very essential to ensure the smooth working of the organisation.

Let us now look into the objectives that are behind the setting up of tax planning.

Objectives of Corporate Tax Planning

Let us now look into each objective in detail

Reduction of Tax Liability

The most important and main objective of corporate tax planning is to reduce the burden of the tax. Every corporate has some fixed amount of tax which is imposed upon them. They are inevitable. So in this case the additional taxes incurred by them need to be managed properly so that the burden can be reduced to an extent.

Economic Stability

A firm that plans its tax accordingly will have a stable economic position over other firms. We all know that corporate tax is subject to double taxation ie, the profits earned by the company are subject to tax, and this profit distributed among the stakeholders is also subject to the tax as that becomes a part of their income. So once the firm plans the tax accordingly this can be avoided to an extent by understanding the different deductions available to them and enjoying an economic privilege.

Increased Production

The firm is reducing its tax liability. The money saved by the firm can be put to other profitable and productive uses. This will in turn give rise to the optimum utilisation of the resources available to the firm.

Awareness regarding Deductions

The corporate will dig deep into the different provisions, rebates and deductions stated in favour of them in the light of tax reduction. The company will have a clear idea of the versatile options available to them and make use of them in the most efficient manner. They will be aware of these deductions only if they are keen to do tax planning in a corporation.

Minimize Litigation

The corporate even though finds ways to reduce tax corporate planning act as a standard by which this financial planning should take place. They lay out a just plan which does not break any rules of the government system that should be followed. Thus, there is a smooth link between the government and the corporate.

Planning of sales and capital

Corporate tax planning includes the proper planning of the capital that should be introduced to the business and the sales that are to achieve. There should always be a balance of both to avoid the imposition of high taxes due to high fluctuations in the business.

From the above, we can understand that corporate tax planning helps in the smooth running of the organisation. We now need to know the different types of corporate tax planning

Types of Corporate Tax Planning

Short-range and long-range tax planning.

Plans laid out by the corporate can differ in their nature. They may serve a single purpose or maybe they will act as a standard for the entire tenure of the organisation. If the plan is stated for a particular purpose and is usually of limited scope is called short-range tax planning. They are usually put forward at the end of the year. On the other hand, when the plan is outstretched for the whole fiscal year it is called long-range tax planning. The incidence and impact will be there for a foreseen future.

Purposive tax planning

In this the corporate tax take into consideration all the tax provisions available to them. They avail all the tax benefits and get the maximum benefit out of that. Making use of the provisions will increase the savings of the corporation.

Permissive tax planning

The organisations take into consideration the deductions and permissions given by the tax authorities to the corporation regarding limiting tax liability. They make use of all the concessions provided to them as per certain sections of the law

Advantages of Corporate Tax planning

We have discussed the different advantages of corporate tax planning in the previous headings. Let us summarise them into the following:

• Minimise the tax liability
• Increase in the use of the resources
• Increased economic stability
• Minimise litigation
• Awareness regarding provisions
• Proper maintenance of the business cycle (production process)

These are the advantage of tax planning. Doesn’t it have any limitations?

Limitations of Corporate Tax planning

The main limitations of corporate tax planning are that:

• Opting to the wrong methods for tax saving like insurance. From an individual point of view, insurance is a good option for tax savings but from a corporate point of view, it is not advisory to insure in numerous insurances for tax savings as it will not give the desired result.
• The corporate will be more focused on the optimisation of resources and maybe this will cause overproduction.
• If the deductions are not clearly understood it may result in tax evasion and result in the attraction of unwanted litigation.

For a corporate firm to achieve the desired success it is necessary to understand all the legal and financial aspects of the working of the business. Tax planning helps the firm to optimize its economic stability and reduce the tax burden of the corporation. All companies registered under the act would follow corporate tax planning to reduce the tax liability imposed on them. Thus we can conclude that a firm following a good systematic corporate tax planning tends to have a successful run for a foreseeable future.

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CSR and tax planning : case study of football club

corporate social responsibility

tax planning

corporate finance

Purpose: Based on a review of recent literature, this paper presents the association between tax planning and Corporate Social Responsibility (CSR). Four dimensions of CSR were applied for this study: managerial, economic, social, and environmental. The study verifies the relation between CSR and tax planning in the aforementioned dimensions. Design/Methodology/Approach: Research is based on the case studies of the Legia Warszawa Football Club Limited Company - one of the best Polish football clubs - during the period between 2011 and 2014 and the Legia Warszawa Football Academy Foundation during the same period. The football club was chosen due to strong relations between sports and CSR. The case study is based on a comparative dynamical and structural analysis of financial data. The fundamental for the case study was the review of previous literature and legal analysis. Findings: This study shows how the company is committed to both social responsibility and tax planning. The case study confirms that CSR was performed in four dimensions. The confirmation was provided, described and analysed based on the business model of the chosen entity. Furthermore, it is possible to observe that performance of CSR is noticed mainly in the managerial and economic dimensions. Research/practical implications: Due to the CSR activities performed and planned by the foundation, the company gained a wide range of benefits. Positive effects of CSR management and tax planning in the current case can be seen mainly due to the use of legal opportunities. Originality/Value: The study proposes how the business model of the football club and foundation can achieve their common goals. It presents how economically important the cooperation between the foundation, which materializes the CSR activities, and the football club, a profit-making company, can be. The study also describes how it is possible to observe the relation between CSR and tax planning in case of the sports club.

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Download Corporate Tax Planning Notes, PDF I MCOM (2024)

• Post last modified: 11 January 2023
• Reading time: 12 mins read
• Post category: Uncategorized

Download Corporate Tax Planning Tax Planning Notes, PDF, Books, Syllabus for MCOM (2024). We provide complete corporate tax planning pdf. Corporate Tax Planning study material includes corporate tax planning notes, book, courses, case study, syllabus, question paper, MCQ, questions and answers and available in corporate tax planning pdf form.

Corporate Tax Planning subject is included in MCOM so students are able to download corporate tax planning notes for MCOM 3rd year and corporate tax planning notes for MCOM 5th semester.

Table of Content

• 1 Corporate Tax Planning Syllabus
• 2 Corporate Tax Planning PDF
• 3 Corporate Tax Planning Notes
• 4 Corporate Tax Planning Questions and Answers
• 5 Corporate Tax Planning Question Paper
• 6 Corporate Tax Planning Books

Corporate Tax Planning Notes can be downloaded in corporate tax planning pdf from the below article.

Corporate Tax Planning Syllabus

A detailed corporate tax planning syllabus as prescribed by various Universities and colleges in India are as under. You can download the syllabus in corporate tax planning pdf form.

• Basic framework of tax laws in India, Residential status of a Company and incidence of tax, Corporate Tax Planning: meaning, Tax Evasion and Tax Avoidance. Tax Planning & Tax Management.

2. Planning regarding Set off & Carry Forward of Losses and Computation of taxable income of companies, Minimum Alternate Tax, Tax on distributed profits of domestic companies, Tax on dividends and income received from venture capital companies.

3. Special provisions in respect of newly established undertakings in Free Trade Zones: General and specific conditions, consequence of amalgamation, demerger and sec 10A. Special provisions in respect of newly established undertakings in SEZ’s.: conditions, consequence of amalgamation, demerger and sec 10AA. Special provisions in respect of newly established undertakings in 100% EOU’s: specific conditions, consequence of amalgamation, demerger, sec 10 B.

4. Deductions available to undertakings developing infrastructure facility, SEZ, Industrial Park, power generation, Telecommunication, reconstruction of power unit. Deductions in respect of profits and gains of undertakings engaged in development of SEZ. Deductions in respect of certain undertakings in certain special category of states, North-Eastern States. Application of these special conditions.

5. Decision regarding form of organization. Tax Planning regarding form of organization with reference to sole proprietorship, Partnership & Company.

6. Financial Management Decisions: Capital Structure Decisions, regarding Dividend Policy: meaning of dividend and its distribution, DDT and regarding issue of Bonus Shares.

7. Managerial Decision: Buy or Lease, Make or Buy and Export or Local Sales, Tax Planning regarding employees remuneration, FBT Planning and Remuneration Planning.

8. Tax Planning in case of liquidation, Advance payment of Tax and Double Taxation Relief.

9. Restructuring business, Amalgamation: conditions, transfer of capital asset, Setoff and carry forward of losses and consequences, Demerger: Conditions, transfer of capital asset, capital gains, Set off and carry forward of losses, expenditure on demerger and consequences.

10. Conversion of sole proprietorship into company and firm into company, Slump Sale and Transfer of assets between holding and subsidiary company.

Corporate Tax Planning PDF

Corporate tax planning notes.

Corporate Tax Planning Questions and Answers

If you have already studied the corporate tax planning and services notes, then it’s time to move ahead and go through previous year corporate tax planning question papers.

• Discuss the historical background of Income tax. What is its importance?
• What is net tax?
• What are the components of Income Tax Law?
• What do you understand by residential status of an individual? How is it related to incidence of an assessee?
• Describe the division of taxable entities for the purpose of determining residential status.
• Discuss, in detail, the provisions for determining the residential status of an assessee.
• Describe how you would determine the residential status of an assessee.
• Write a note on residential status of a company.
• Defi ne incidence of tax as per section 5 of the Income Tax Act, 1961.
• Differentiate between Indian and Foreign Income.
• Explain the meaning of income received or deemed to be received in India.

Corporate Tax Planning Question Paper

If you have already studied the corporate tax planning and services notes, then it’s time to move ahead and go through previous year corporate tax planning question paper.

It will help you to understand the question paper pattern and type of corporate tax planning question and answer asked in MCOM 3rd year corporate tax planning exam. You can download the syllabus in corporate tax planning pdf form.

Corporate Tax Planning Books

Below is the list of corporate tax planning books recommended by the top university in India.

• Ahuja, G. K. & Gupta, Ravi, Systematic Approach to Income Tax, Bharat Law House.
• Aggarwal, K., Direct Tax Planning and Management, Atlantic Publications.
• Lakhotia, R.N., Income Tax Planning Handbook, Vision Books.
• Singhania, V. K. & Singhania, Kapil, Direct Taxes law & Practice. Taxmann Publications.
• Srinivas E. A., Handbook of Corporate Tax Planning, Tata McGraw Hill.

In the above article, a student can download corporate tax planning notes for MCOM 3rd year and corporate tax planning notes for MCOM 6th semester. Corporate Tax Planning study material includes corporate tax planning notes, corporate tax planning books, corporate tax planning syllabus, corporate tax planning question paper, corporate tax planning case study, corporate tax planning questions and answers, corporate tax planning courses in corporate tax planning pdf form.

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