Tax shields, Taxation

Tax Shields

A tax shield is defining any reduction in a corporation's tax bill which can be brought about by management. Depreciation, for example create a tax shield because depreciation is a non- cash expense which is deductible for income tax purposes.  As similarly the managers can reduce their taxable income by the use of debt because interest expense is deductible for income tax purposes (dividends, however, are not). Other kinds of tax shields are periodically available like investment tax credits.

Posted Date: 10/16/2012 7:01:20 AM | Location : United States







Related Discussions:- Tax shields, Assignment Help, Ask Question on Tax shields, Get Answer, Expert's Help, Tax shields Discussions

Write discussion on Tax shields
Your posts are moderated
Related Questions

Temporary difference; future deductible amounts; taxable income given Lance Lawn Services reports warranty expense by estimating the amount that eventually will be paid to satis

Cecil C. Seymour is a 646-year-old widower. He had income for 2013 as follows: Pension from former employer $39,850, Interest income from Alto Nationl Bank 5,500, Interest inco

Dan and Cheryl are married, file a joint return, and have no children. Dan is a pharmaceutical salesman and Cheryl is a nurse at a local hospital. Dan%u2019s SSN is 400-20-1000 and

Maskot Industries wishes to determine whether it would be advisable to replace an existing, fully depreciated machine with a new piece of equipment. The new machine will cost $300,

(i) Discuss, using appropriate examples, the concept of ‘transfer pricing’ and explain why tax authorities around the world have become concerned about it.

Explain the Negative List of Services applicable w.e.f 1,july,2012 ?

evaluate the importance of the principal issue litigated in the case in question using the tax research steps outlined in Appendix A of your text.

Dan and Cheryl are married , file a joint return, and have no children. Dan , age 45, is a pharmaceutial salesman and Cheryl, age 42, is a nurse at a local hospital . Dan''s SSN is

Use the information provided in question 4 to answer this question. a) What must happen to taxes in year t for the primary deficit to be zero? b) What must happen to taxes in y