稅收籌劃原理課件：Taxes as Transaction Costs

TaxesasTransactionCosts

TaxesasTransactionCostsLearningObjectivesComputethetaxcostofanincomeitemandthetaxsavingsfromadeduction.IntegratetaxcostsandsavingsintoNPVcalculationsIdentifytheuncertaintiesconcerningfuturetaxcostsandsavings.Explainwhytaxminimizationmaynotbetheoptimalbusinessstrategy.Explainwhybilateraltaxplanningisimportantinprivatemarkettransactions.Distinguishbetweenarm’s-lengthandrelatedpartytransactions.TaxesasTransactionCostsTheRoleofNetPresentValueinDecisionMakingQuantifyingCashFlowsTaxesasTransactionCostsTheRoleofNetPresentValueinDecisionMakingTheConceptofPresentValuePresentValuePresentValueofanAnnuityPresentValueTables($1fornperiods)TaxesasTransactionCostsTheRoleofNetPresentValueinDecisionMakingTheIssuesofRiskTaxesasTransactionCostsTheRoleofNetPresentValueinDecisionMakingANetPresentValueExampleTaxesasTransactionCosts

Engagement1 Engagement2Currentyear:Cashrevenues $150,000 $200,000Cashexpenses (90,000)

(65,000)Netcashflow $60,000 $135,000Nextyear:Cashrevenues $150,000 $125,000Cashexpenses (10,000)

(65,000)Netcashflow $140,000 $60,000Presentvalueofcurrentyearcashflow $60,000 $135,000Presentvalueofnextyearcashflow(cashflow×.909discountfactor) 127,260

54,540NPV $187,260

$189,540TaxesasTransactionCostsTaxesandCashFlowsTaxCostsTaxSavingsTheSignificanceofMarginalTaxRateTaxesasTransactionCostsTaxesandCashFlowsNetPresentValueExampleRevisitedTaxesasTransactionCosts Engagement1Engagement2Currentyear:Taxablerevenues $150,000$200,000Deductibleexpenses (90,000)(65,000)Before-taxcashflow/taxableincome $60,000$135,000Incometaxcostat40% (24,000)

(54,000)After-taxcashflow $36,000$81,000Nextyear:Taxablerevenues $150,000$125,000Deductibleexpenses (10,000)

(65,000)Before-taxcashflow/taxableincome $140,000$60,000Incometaxcostat40% (56,000)

(24,000)After-taxcashflow $84,000$36,000Presentvalueofcurrentyearcashflow $36,000$81,000Presentvalueofnextyearcashflow(after-taxcashflow×.909discountfactor) 76,356

32,724NPV $112,356

$113,724TaxesasTransactionCostsTaxesandCashFlowsNetPresentValueExampleRevisitedDifferentTaxTreatmentacrossTransactionsDifferentTaxRatesoverTimeTaxesasTransactionCosts Engagement1Engagement2Currentyear:Taxablerevenues $150,000$200,000Deductibleexpenses (90,000)(48,750)Nondeductibleexpenses -0-

(16,250)Before-taxcashflow $60,000$135,000Incometaxcost:Taxableincome $60,000$151,250

.40

.40Taxcost (24,000)

(60,500)After-taxcashflow $36,000$74,500Nextyear:Taxablerevenues $150,000$125,000Deductibleexpenses (10,000)(48,750)Nondeductibleexpenses -0-

(16,250)Before-taxcashflow $140,000$60,000Incometaxcost:Taxableincome $140,000$76,250

.40

.40Taxcost (56,000)

(30,500)After-taxcashflow$84,000 $29,500Presentvalueofcurrentyearcashflow $36,000$74,500Presentvalueofnextyearcashflow(after-taxcashflow×.909discountfactor) 76,356

26,816

NPV $112,356

$101,316TaxesasTransactionCosts Engagement1Engagement2Currentyear:Taxablerevenues $150,000$200,000Deductibleexpenses (90,000)(65,000)Before-taxcashflow/taxableincome $60,000$135,000Incometaxcostat40% (24,000)

(54,000)After-taxcashflow $36,000$81,000Nextyear:Taxablerevenues $150,000$125,000Deductibleexpenses (10,000)

(65,000)Before-taxcashflow/taxableincome $140,000$60,000Incometaxcostat25% (35,000)

(15,000)After-taxcashflow $105,000$45,000Presentvalueofcurrentyearcashflow $36,000