Taxes and business strategy : a planning approach / / Myron S. Scholes [and five others]

• Record Nr.: UNINA9910154771003321
• Autore: Scholes Myron S.
• Pubbl/distr/stampa: Boston : , : Pearson, , [2016]; ©2016
• Edizione: [Fifth edition, Global edition.]
• Descrizione fisica: 1 online resource (528 pages)
• Collana: Always learning
• Disciplina: 343.73068
• Soggetti: Business enterprises - Taxation - Law and legislation - United States; Tax planning - United States
• Lingua di pubblicazione: Inglese
• Formato: Materiale a stampa
• Livello bibliografico: Monografia
• Nota di bibliografia: Includes bibliographical references and index.
• Nota di contenuto: Cover -- Title -- Copyright -- Contents -- Preface -- Acknowledgments -- About the Authors -- Chapter 1 Introduction to Tax Strategy -- 1.1 Themes of the Book -- Taxing Authority as Investment Partner -- The Importance of a Contractual Perspective -- 1.2 Why Do Tax Rules Influence Before-Tax Rates of Return and Investment Decisions? -- Implicit Taxes and Tax Clienteles -- Tax Planning as a Tax-Favored Activity -- Why Study Tax Planning? -- 1.3 Topics Covered in This Book -- 1.4 Intended Audience for This Book -- Summary of Key Points -- Appendix 1.1 Overview of Calculation of U.S. Income Tax Liability -- Discussion Questions -- Exercises -- Tax-Planning Problems -- References -- Chapter 2 Tax-Planning Fundamentals -- 2.1 Types of Income Tax Planning -- Converting Income from One Type to Another -- Shifting Income from One Pocket to Another -- Shifting Income from One Time Period to Another -- 2.2 Restrictions on Taxpayer Behavior -- Economic Substance, Business Purpose, and Substance over Form -- Constructive-Receipt Doctrine -- Related-Party versus Arms-Length Contracts -- Assignment-of-Income Doctrine -- 2.3 The Legislative Process and Sources of Tax Information -- Primary and Secondary Authorities -- The Legislative Process -- Regulations and Revenue Rulings That Result from the Passage of a Tax Act -- The Role of Judicial Decisions -- Secondary Authorities -- Summary of Key Points -- Appendix 2.1 Sources of Information on Tax ; Legislation -- Appendix 2.2 More Detailed Examples of Tax Planning -- Discussion Questions -- Exercises -- Tax-Planning Problems -- References and Additional Readings -- Chapter 3 Returns on Alternative Savings Vehicles -- 3.1 Intertemporally Constant Tax Rates -- Review of Compound Interest -- Investments in Savings Vehicles I and II -- Hybrid Savings Vehicles.; Differences in After-Tax Accumulations in Savings Vehicles I and II as a Function of Pretax Rates of Return -- Investments in Savings Vehicle III -- Comparison of Savings Vehicles II and III -- Investments in Savings Vehicle IV -- Investments in Savings Vehicle V -- Investments in Savings Vehicle VI -- Dominance Relations and Empirical Anomalies -- 3.2 Changes in Tax Rates over Time -- 3.3 More on Pension Plans -- Traditional Deductible IRAs -- Nondeductible IRAs -- Roth IRAs -- Comparison of the Deductible and Roth IRAs-New Contributions -- Comparison of the Deductible and Roth IRAs-The Conversion Decision -- Summary of Key Points -- Discussion Questions -- Exercises -- Tax-Planning Problems -- References and Additional Readings -- Chapter 4 Choosing the Optimal Organizational Form -- 4.1 Organizational Forms for Producing Goods and Services -- Data on Partnerships and LLCs -- Data on Corporations -- 4.2 Computation of After-Tax Returns to Pass-Through and Non-Pass-Through Forms of Organization -- 4.3 Start-up Enterprises: Decision Factors, Expectations, and Observed Data -- 4.4 Changing Preferences for Organizational Forms Induced by Tax-Rule Changes -- The Required Before-Tax Rates of Return on Corporate and Partnership Activities -- The Required Rate of Return on Stocks in the Presence of Dividends -- The Effective Annualized Tax Rate on Shares: ts -- Required Before-Tax Rate of Return: Corporations versus Partnerships: R*c -- Post-1986 Tax Reform Act (1987, 1988-1990) -- Further Analysis of the 2003 Tax Act -- Progressive Personal Income Tax Rates, tp and tcg -- 4.5 Other Organizational Forms Through Which to Organize Production Activities -- Summary of Key Points -- Appendix 4.1 Dividend Imputation in the Corporate Form -- Appendix 4.2 Other Investment Vehicles -- Discussion Questions -- Exercises -- Tax-Planning Problems.; References and Additional Readings -- Chapter 5 Implicit Taxes and Clienteles, Arbitrage, Restrictions, and Frictions -- 5.1 Tax-Favored Status and Implicit Taxes -- 5.2 The Implicit Tax Rate, the Explicit Tax Rate, and the Total Tax Rate -- Computing the Implicit Tax -- Total Tax Rates in a Competitive Market -- 5.3 The Importance of Adjusting for Risk Differences -- 5.4 Clienteles -- Evidence on the Existence of Implicit Taxes and Clienteles -- 5.5 Implicit Taxes and Corporate Tax Burdens -- 5.6 Tax Arbitrage -- 5.7 Organizational-Form Arbitrage -- Immediate Tax Rebates When Taxable Income Is Negative -- No Tax Rebates on Negative Taxable Income -- Restrictions on Organizational-Form Arbitrage -- Full Taxation with Deferral and Organizational-Form Arbitrage -- The Effects of Frictions on Organizational-Form Arbitrage -- Bankruptcy Rules and Organizational-Form Arbitrage -- Buying and Selling Implicitly Taxed Assets to Effect Organizational-Form Arbitrage -- 5.8 Clientele-Based Arbitrage -- Clientele-Based Arbitrage with Investments in Tax-Favored Assets Other Than Tax-Exempt Bonds -- Market Equilibrium with Tax-Exempt Entities -- Summary of Key Points -- Appendix 5.1 Adjusting for Risk Using the Capital Asset Pricing Model -- Discussion Questions -- Exercises -- Tax-Planning Problems -- References and Additional Readings -- Chapter 6 Nontax Costs of Tax Planning -- 6.1 Symmetric Uncertainty, Progressive Tax Rates, and Risk-Taking -- R&amp -- D and O&amp -- G Activities -- Progressive Tax Rates and Hedging -- 6.2 Tax Planning in the Presence of Risk-; Sharing and Hidden-Action Considerations -- Contracting in Capital Markets -- Contracting in Labor Markets -- Conflicts between Risk-Sharing and Tax Minimization -- Conflicts between Incentive Contracting and Tax Minimization -- 6.3 Tax Planning in the Presence of Hidden-Information Considerations.; 6.4 Tax Planning and Organizational Design -- 6.5 Accounting for Income Tax Basics and the Importance of Financial Accounting Outcomes in Tax Plans -- Accounting for Corporate Income Taxes-Rules and Disclosure Example -- Examples of Temporary Differences -- Examples of Permanent Differences -- Interpreting Income Tax Expense Disclusures -- Example Illustrating Corporate Income Tax Disclosures -- FIN 48 Accounting for Uncertain Tax Benefits -- Examples of Actual Corporate Disclosure -- Other Details about Unrecognized Tax Benefits -- Evidence about the Importance of Financial Accounting Income -- Book-Tax Trade-off: Income Shifting across Time -- Book-Tax Trade-off: LIFO/FIFO Studies -- Regulatory Costs -- Asset Divestitures -- Dollar Estimates of Firms' Willingness to Forgo Tax Savings -- Survey Evidence and Anecdotes of Lobbying Activity -- Summary of Key Points -- Discussion Questions -- Exercises -- Tax-Planning Problems -- References and Additional Readings -- Chapter 7 The Importance of Marginal Tax Rates and Dynamic Tax-Planning Considerations -- 7.1 Marginal Tax Rate: Definitional Issues -- Scenario 1: TIt &lt -- 0, NOLt − 1 = 0 -- Scenario 2: TIt &lt -- 0, NOLt − 1 &gt -- 0 -- Scenario 3: TIt &gt -- 0, NOLt − 1 = 0 -- Scenario 4: TIt &gt -- 0, NOLt − 1 &gt -- 0 -- Evidence on NOLs for U.S. Corporations -- Estimating Corporate Marginal Tax Rates -- Additional Details on Local-Level Tax Rates and Individual-Level Marginal Rates -- Average and Effective Tax Rates -- Problems with Average (and Effective) Tax Rates -- 7.2 Tax Planning for Low-Marginal-Tax-Rate Firms -- 7.3 Adaptability of the Tax Plan -- Transaction Costs and Tax Clienteles -- Adaptability in Investment and Financing Decisions -- 7.4 Reversibility of Tax Plans -- 7.5 Ability to Insure against Adverse Changes in Tax Status.; 7.6 Tax Planning When a Taxpayer's Marginal Tax Rate Is Strategy-Dependent -- Summary of Key Points -- Appendix 7.1 -- Discussion Questions -- Exercises -- Tax-Planning Problems -- References and Additional Readings -- Chapter 8 Compensation Planning -- 8.1 Salary versus Deferred Compensation -- Employer and Employee Tax Rates Both Expected to Fall -- 2012 Tax Planning with Deferred Compensation Plans -- Summary of Deferred Compensation Plans -- 8.2 Salary versus Fringe Benefits -- Analysis for Taxable Employer -- Analysis for Tax-Exempt Employer -- Employer-Provided Meals -- 8.3 Cash Bonus Plans -- 8.4 Stock-Based Compensation Components -- Restricted Stock -- Employee Tax Rates Expected to Rise -- Long-Term Performance Awards -- Employee Stock Options and Stock Appreciation Rights -- Tax Issues Relating to Incentive Stock Options and Nonqualified Stock Options -- NQOs versus ISOs -- Evidence on the Role of Taxes in the Choice of ISOs -- Disqualifying Dispositions of ISOs -- The Role of Taxes in the NQO Exercise Decision -- Financial Accounting and Tax Comparison of Restricted Stock, Performance Share Awards, Stock Appreciation Rights, and Stock Options -- Other Differences between Restricted Stock and SARS, PSAs, and ESOs -- Compensation in Venture-Capital-Backed Start-Ups -- Other Influences of Taxes on Compensation Structure -- Concluding Remarks -- Summary of Key Points -- Appendix 8.1 Accounting for the Tax Benefits of Employee Stock Options -- Appendix 8.2 SFAS 123 Accounting (up to 2005) for the Tax Benefits of Stock Options -- Appendix 8.3 Backdating Stock Option Grants -- Appendix 8.4 ; Incentive Stock Options and Alternative Minimum Tax Complications -- Discussion Questions -- Exercises -- Tax-Planning Problems -- References and Additional Readings -- Chapter 9 Pension and Retirement Planning -- 9.1 Types of Pension Plans.; 9.2 A Comparison of Salary and Pension Compensation.
• Sommario/riassunto: For MBA students and graduates embarking on careers in investment banking, corporate finance, strategy consulting, money management, or venture capital Through integration with traditional MBA topics, Taxes and Business Strategy, Fifth Edition provides a framework for understanding how taxes affect decision-making, asset prices, equilibrium returns, and the financial and operational structure of firms. Teaching and Learning Experience This program presents a better teaching and learning experience-for you and your students: Use a text from an active author team: All 5 authors actively teach the tax and business strategy course and provide students with relevant examples from both classroom and real-world consulting experience. Teach students the practical uses for business strategy: Students learn important concepts that can be applied to their own lives. Reinforce learning by using in-depth analysis: Analysis and explanatory material help students understand, think about, and retain information.