Strategic Business Tax Planning, Second Edition is the definitive handbook on business tax planning, skipping the unnecessary and minute taxation details and focusing instead on the big picture in taxes. Organized around business processes, this reader-friendly guide shows you how to optimally put tax management principles to work in your business.
Autorentext
JOHN E. KARAYAN, JD, PHD, is a professor at California State
Polytechnic University, Pomona. He is also a Partner at the law
firm of Bond Karayan. Prior to his academic career, he was director
of taxes at Informatics General Corporation (now Sterling
Software); assistant tax counsel at The Parsons Corporations, and
supervising specialist at Coopers & Lybrand (now
PricewaterhouseCoopers). He is the Editor in Chief of the Journal
of Interdisciplinary Studies as well as a member of the editorial
review board (former associate editor) of Mid-Atlantic Journal of
Business, Research in Healthcare Financial Management, and the
Business Forum Journal.
CHARLES W. SWENSON, CPA, PHD, is Professor and Leventhal
Research Fellow in the Marshall School of Business at the
University of Southern California, where he has taught for the last
nineteen years. He holds a joint appointment at the California
Institute of Technology (Caltech). His practice experience includes
PricewaterhouseCoopers and Deloitte & Touche. He is a member of
the AICPA and the American Economics Association, and is a
cofounder of the National Tax Credit Group, LLC.
Klappentext
Business decision-makers need to think bottom lineand that means after taxes.
Drawing upon more than fifty years of professional experience between them, authors and tax experts John Karayan and Charles Swenson deftly show managers how to get to the bottom line without getting bogged down in the details of taxes.
Strategic Business Tax Planning, Second Edition is the definitive handbook on business tax planning, skipping the unnecessary and minute taxation details and focusing instead on the big picture in taxes. Organized around business processes, this reader-friendly guide shows you how to optimally put tax management principles to work in your business.
Appropriate for undergraduate finance students as well as professionals, this Second Edition is updated to include the newest federal tax acts as well as a host of key cases and administrative pronouncements.
Zusammenfassung
Strategic Business Tax Planning, Second Edition is the definitive handbook on business tax planning, skipping the unnecessary and minute taxation details and focusing instead on the big picture in taxes. Organized around business processes, this reader-friendly guide shows you how to optimally put tax management principles to work in your business.
Inhalt
About the Authors v
Acknowledgments xiii
Introduction xv
Part 1 Strategic Tax Planning 1
Chapter 1 A Framework for Understanding Taxes 3
How are Taxes Important in Decision Making? 5
Types of Taxes 8
Basic Principles of Taxation 30
Sources of Tax Laws 35
Important Principles and Concepts in Tax Law 42
SAVANT Framework 56
Chapter 2 Using the SAVANT Framework to Guide Tax Planning 61
Strategy 63
Anticipation 66
Value-Adding 72
Negotiating 83
Transforming 85
Putting It All Together: SAVANT Concepts Illustrated 87
Part 2 Forming the Enterprise 93
Chapter 3 Choosing a Legal Entity: Risk Management, Raising Capital, and Tax Management 95
Strategy 100
Anticipation and Timing Issues 106
Value-Adding 108
Negotiating 110
Transforming 112
Putting It All Together: Applying SAVANT to Entity Choice 116
Specialized Legal Forms 118
Chapter 4 Financing a New Venture 125
Internal Financing 126
External Financing: Debt versus Equity 129
Part 3 Operating the Firm 153
Chapter 5 New Products: Development, Promotion, and Advertising 155
New Products and Product Improvement 155
SAVANT and Research and Development 175
Chapter 6 Attracting and Motivating Employees and Managers: Company and Employee Tax Planning 179
Executive Compensation 180
Nonexecutive Employee Compensation 182
Perquisites 189
Pension and Profit-Sharing Plans 191
Current and Deferred Compensation 195
Limits on Deductibility on Executive Compensation 195
Stock Options 196
Management Bonus Plans 202
Financial Statement/Finance versus Tax Strategy Trade-Offs 204
Putting It All Together: Applying SAVANT to Executive Compensation 206
Chapter 7 Market Penetration: Operating in Different States 213
General Principles of State and Local Taxation 216
Planning with Income Taxes: Manipulation of Plant, Workforce, and Point-of-Sale Locations 217
Location Choice: Sourcing versus Production Platforms 228
Distribution: Planning for Sales and Use Taxes 230
Lobbying and Tax Abatements 235
Trade-Offs with Local Tax Incentives: Infrastructure, Government Costs/Subsidies, and Other Local Costs 237
Putting It All Together: SAVANT Applied to Market Penetration in Other States 237
Chapter 8 Market Penetration: Company and Employee Tax Planning for Operating in Foreign Countries 241
Some Basics on U.S. Taxation of Overseas Operations 241
Some Basics on Taxation by Countries Other than the United States 244
Tax Treaties 245
Effective Tax Management 247
Putting It All Together: Penetrating Foreign Markets from a SAVANT Perspective 263
Chapter 9 Operations Management 269
Production Design and Process Selection 269
Inventory: Methods of Accounting and Includable Amounts 273
Strategic Capacity Planning: Plant versus People 283
Putting It All Together: Operations Management from a SAVANT Perspective 289
Chapter 10 Financing Ongoing Operations and Tax Planning 293
Operating Earnings 294
Sale of Operating Assets 294
Sale of Investments 296
Short-Term Borrowing 298
Accounts Receivable 299
Decrease in Dividends 300
Stock Dividends 302
Stock Buybacks 303
Using Employee Stock Ownership Plans 305
Receipt of Dividends from Subsidiaries 306
Putting It All Together: Financing Ongoing Operations from a SAVANT Perspective 312
Chapter 11 Capital Budgeting 319
Fixed Asset Acquisition 319
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