Tax Planning, Taxation, and Business Implications Assignment

This document provides solutions to a tax planning assignment, addressing key concepts such as effective tax planning services, marginal tax rates, and the impact of taxes on decision-making. The solution explores how tax professionals can leverage available tax benefits, deductions, and exemptions to minimize tax liabilities for clients. It explains the significance of the marginal tax rate in tax planning analysis and its role in determining taxable income. Furthermore, the document examines how taxes influence individual decisions and the importance of tax planning techniques in strengthening business outcomes and reducing the net present value of tax liabilities. The document includes references to academic literature to support its claims, offering a comprehensive overview of tax planning strategies and their implications for financial decision-making.

Tax Planning
Taxation and planning
[DATE]
[Company name]
[Company address]

Answer to question no-9
The best effective tax planning service that a tax professional could offer to client is
to take the best advantage of all the available tax benefits, deduction and exemption which
could lower down or relief the tax payment of the assessor in the given time period. This tax
planning services is given by tax payer with a view to save tax payer from the high tax
payment and use the proper tax planning. It is used by availing the benefits available from the
exemption, deduction and available provision. Tax payer needs to consult with the tax
professionals so that they could suggest him the possible loopholes and available tax
provisions (Demirbag, et al. 2014).
Answer to question no-10
Margin tax rate is the rate which is used to compute the tax amount to be paid on the
earned income of the individual and company. The planning analysis is used to identify the
maximum deduction, relief and exemption which could be applied to lower down the taxable
income> this amount is computed after following the taxations rules and provisions which
could be used to lower down the tax payment. This tax planning analysis focuses on reducing
the tax payment of the individual by using the available loop holes. The main reason of using
the tax planning analysis on the margin tax rate is based on fact that it is the main factor of
determining the taxable amount to government (Sproge, & Joppe, 2016). If tax planning
analysis does not take into account the marginal tax rate then tax professionals may fails to
determine the maximum and minimum deduction and exemption which could be used to
lower down the taxable income (Nurhidayati, & Fuadillah, 2018).
Answer to question no-11
As per the tax payer viewpoint, taxes can result to medication of the possible decision
of the individuals. This taxes represents an extra amount of expenses which a business need
to incur as its corporate liability. This assumes that tax paper needs to evaluate the everyday
cash outflow in terms of cash outflow with a view to identify the business costing. Taxpayers
employ tax planning techniques to lower down their tax payment and strengthen the business
outcome. Taxes deplete the wealth of the taxpayer. In addition to this, tax planning behaviour
is formulated with a view to lower down NPV of the tax liability value. It is not determined
based on the simple reduction in the tax payment but reducing the value (Werdt, 2015),

This could be illustrated with example that YOYO choose to start two business. One cost him
$ 1000 and other one cost $ 2000 in taxes ten years. Both plans are identical and prevailed
interest rate of the business i.e. 10% . It is because present value of the business levied with
another alternative $ 800. In this case, in context with the tax planning, tax professional
would advise him to choose latter plan.

References
Demirbag, M., Frecknall-Hughes, J., Glaister, K., & Tatoglu, E. (2014). Tax planning and
strategic decisions: a comparison of UK firms and Turkish firms. In Academy of
International Business Annual Meeting.
Nurhidayati, N., & Fuadillah, H. (2018). The Influence of Income Shifting Incentives towards
The Tax Haven Country Utilization: Case Study on the Companies listed in
Indonesian Stock Exchange. Jurnal Akuntansi dan Keuangan, 20(1), 27-38.
Sproge, I., & Joppe, A. (2016). MODERN TRENDS IN TAX PLANNING AND
MINIMIZATION. New Challenges of Economic and Business Development–2016,
736.
Werdt, C. (2015). What drives tax refund maximization from inter-temporal loss usage?.