Ch4 - Chapter 4 Maxims of Income Tax Planning Tax avoidance...

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Chapter 4 Maxims of Income Tax Chapter 4 Maxims of Income Tax Planning Planning Tax avoidance versus tax evasion Tax avoidance versus tax evasion Tax planning variables Tax planning variables The Entity The Time Period The Jurisdiction The Character of Income Explicit and implicit taxes Explicit and implicit taxes Tax law doctrines Tax law doctrines
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Avoidance vs. Evasion Avoidance vs. Evasion Tax Avoidance Tax Evasion
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Four Common Tax Planning Variables Four Common Tax Planning Variables 1. The entity variable: 1. The time period variable: 1. The jurisdiction variable: 1. The character variable:
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ENTITY Tax costs decrease (and cash flows increase) when income is generated by an entity subject to a low tax rate. When establishing a new business, consider the tax rates paid by the form of business entity.
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Entity – Cont. Reducing tax liabilities may depend on: Income Shifting Deduction Shifting After either an income or deduction shift, the parties in the aggregate are financially better off by the tax savings from the transaction. Assignment of Income Doctrine
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This note was uploaded on 06/03/2008 for the course ACC 330 taught by Professor Wright during the Spring '08 term at N.C. State.

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Ch4 - Chapter 4 Maxims of Income Tax Planning Tax avoidance...

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