Roles of Taxation

Roles of Taxation - Cash ²ows exists only on an after-tax basis therefore every decision has a tax impact Decision-making process involves

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THE ROLES OF TAXATION IN THE BUSINESS DECISION PROCESS * Business enterprises are subject to many forms of taxation by municipal, provincial, and federal authorities * Income tax (federal and provincial) signi±cantly affects ROI * ROI measured by the cash ²ow returned after the payment of taxes * Reducing or postponing payment of tax will make it easier to max total earnings of an enterprise and increase overall wealth of owners
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Unformatted text preview: * Cash ²ows exists only on an after-tax basis therefore every decision has a tax impact * Decision-making process involves analyzing the short-range and long-range cost/bene±t analysis for alternatives * Including taxation as a part of the formal decision-making process leads to improved cash ²ows and the long-term maximization of the value of the enterprise....
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This note was uploaded on 02/05/2012 for the course ACC 522 taught by Professor A.vena during the Spring '11 term at Ryerson.

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