Page 227 - DCOM508_CORPORATE_TAX_PLANNING

Corporate Tax Planning Tanima Dutta, Lovely Professional University

Notes Unit 10: Tax Consideration in Specific Managerial Decisions

CONTENTS

Objectives
Introduction
10.1 Managerial Decision
10.1.1 Functional Management and Decision-making
10.1.2 Other Dimensions of Managerial Decision-making

10.1.3 Considerations Involved in Choosing Between Taxable and Tax-free
Sales or Acquisitions
10.1.4 Make-or-Buy Decision

10.1.5 Buy of Lease Decision
10.1.6 Export or Local Sales Decision
10.2 Tax Planning Regarding Employees Remuneration
10.2.1 Tax Implications of Employee Compensation Package to Employer
10.2.2 Fixation of Tax Liability

10.3 Tax Planning Regarding Fringe Benefi t Planning
10.3.1 Reason for Introducing Fringe Benefi t Tax
10.3.2 Who pays Fringe Benefi t Tax?
10.3.3 An Overview of the Possible Fringe Benefi t Options
10.3.4 Explanation of How FBT Will Operate

10.4 Tax Planning Regarding Remuneration Planning
10.4.1 Tax Planning for Salary Package
10.4.2 Tax Efficient Compensation Package

10.4.3 Salary Restructuring

10.5 Summary
10.6 Keywords
10.7 Review Questions
10.8 Further Readings

Objectives

After studying this unit, you will be able to:

Explain the concept of managerial decision
Discuss tax planning regarding employees remuneration
Describe tax planning regarding fringe benefi t planning

Identify tax planning with relation to remuneration planning

222 LOVELY PROFESSIONAL UNIVERSITY