- 7 Marks
ATAX – May 2017 – L3 – Q6a – Tax Planning and Management
Explain thin capitalization and non-tax factors in tax planning with examples.
Question
Tax planning encompasses many different considerations, including the timing of income, purchases and other expenditure, the selection of investments, and the taxpayer’s filing status. Put differently, tax planning is the analysis of a financial situation or plan from a tax perspective.
Given the current government’s drive to boost revenue, there is the compelling need for companies to adopt vigorous tax planning strategies.
You are required to briefly explain with examples the following:
i. Thin Capitalization (4 Marks)
ii. Non-Tax Factors (3 Marks)
Find Related Questions by Tags, levels, etc.
- Tags: Non-Tax Factors, Tax Planning, Tax Strategies, Thin Capitalization
- Level: Level 3
- Topic: Tax Planning and Management
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