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
kindly please help me in getting the valuation methods under other methods for the assessment year 2012-13.

I still don''t know this yet but my teacher wants me to do this a i don''t know this topic?

FOR THE RELEVANT INCOME YEAR, EILL STANNOS BE REGARDED AS A RESIDENT OR NON- RESIDENT

Explain in words and show in figures how a lump-sum government transfer can entice some workers to stop working ( and no one to start working) while a policy like EITC can entice s

The Madison Restaurant was formed a S corporation at the end of last year. Bob Buron, owns 60% of the stock, manages the restaurant. Ray Huges owns the remaining 40%

The Madison Restaurant was formed a S corporation at the end of last year. Bob Buron, owns 60% of the stock, manages the restaurant. Ray Huges owns the remaining 40% of the stock

Carol is a successful physician who owns 100% of her incorporated medical practice. She and her husband, Jared, are considering the purchase of a commercial office building located

A owns all of the stock of X. The stock’s basis is $2,300. X has a total of current earnings and profits of $1,500 but accumulated earnings and profits of negative $500 (i.e., an


meaning of vat