Taxation in Finance and Accounting: An Introduction to Theory and Practice

Description

Taxation is becoming more and more relevant for firms and managers decisions, mainly due to the impacts of taxation on firms and projects performance, profitability and value. This book provides an introductory overview of taxation in the fields of finance and accounting. It covers several fundamental topics of taxation, such as income, corporate and value add tax, and tax planning and management, international taxation, EU tax harmonization and transfer prices. This book intends to provide the readers with an understanding of the main concepts and principles of these topics, regardless of specific country contexts in law. With this book, readers will be able to understand the fundamentals of taxation at a conceptual and practical level. By using theory and practical examples, readers will understand taxation at a broader level, without being concerned about country-specific issues. Acknowledgements About the Book Contents About the Author List of Figures List of Tables 1: Introduction 1.1 Taxation 2: Taxation Principles and Concepts 2.1 The Definition of Taxation and Taxes 2.2 Characteristics of a Tax System 2.3 Sources of Tax Law 2.4 Classifications of Taxes 2.5 Taxable Event 2.6 Applying Taxes on Time 2.7 Applying Taxes in Jurisdiction 2.8 Tax Enforcement 2.9 Tax Incidence 2.10 Tax Exemptions 2.11 Taxpayers/Tax Persons 2.12 Tax Period and Tax Season 2.13 Tax Base and Tax Amount 2.14 Tax Rates 2.15 Tax Expenditures 2.16 Tax Avoidance and Tax Evasion 2.17 Tax Gap 2.18 Tax Administration 2.19 Administrative Tax Procedures 2.20 Tax Competition 2.21 Tax Harmonization 2.22 Environmental Taxes 2.23 Taxation and Ethics References 3: Taxation in Economics 3.1 Taxation on Demand and Supply 3.2 Taxation and Labor Supply 3.3 Taxation and Efficiency 3.4 Macroeconomic Effects of Taxation 3.5 Fiscal Policy 3.6 Revenues and Expenditures 3.7 Deficit and Debt 3.8 Taxation and (In)Equality 3.9 Taxation and Externalities 3.10 Tax Effort 3.11 Tax Expenditures References 4: Taxation in Accounting 4.1 Main Definitions 4.2 Taxes in the Balance Sheet and the P&L 4.3 Accounting for Corporate Tax 4.4 Accounting for VAT 4.5 Deferred Tax Assets/Liabilities References 5: Taxation in Finance 5.1 Main Definitions 5.2 Decisions on Taxes 5.3 Taxes and Costs 5.4 Taxes and the Investment Decision 5.5 Taxes and the Financing Decision 5.6 Taxes and the Dividend Decision References 6: Income Tax 6.1 Income Tax Definitions 6.2 Main Principles 6.3 Income Tax Structure 6.4 Types of Income Tax Rates 6.5 Exercises and Solutions References 7: Corporate Tax 7.1 Corporate Tax Definitions 7.2 Main Principles 7.3 Corporate Tax Concepts-How the Tax Works? 7.4 Income and Costs 7.5 Depreciation and Amortizations 7.6 Grants (Subsidies) 7.7 Capital Gains 7.8 Tax Losses Carryforward 7.9 Loan Interest Deduction and Limits 7.10 Corporate Tax Rates 7.11 Corporate Tax Declarations and Payments 7.12 Exercises and Solutions References Untitled 8: Tax Planning and Management 8.1 The Concept of Tax Planning and Management 8.2 Tax Avoidance and Tax Evasion 8.3 Tax Benefits, Tax Credits, Tax Shelters, and Tax Incentives 8.4 Tax Planning and M&A 8.5 Depreciations and Tax Planning 8.6 Tax Losses Are Carried Forward and Tax Planning 8.7 Tax Planning of Depreciations and Tax Losses 8.8 Tax Planning on Investment Decisions 8.9 Tax Planning in Financing Decisions 8.10 Tax Planning in Dividend Decisions 8.11 Exercises and Solutions References Untitled 9: Value-Added Tax 9.1 The Main Concepts of VAT 9.2 VAT Exemptions 9.3 The VAT Charge and Deductions 9.4 VAT Declarations, Payment, and Regularization 9.5 VAT in the EU: Rules Regarding the Location of Operations 9.6 VAT Evasion and Fraud 9.7 The VAT Revenue Gap 9.8 VAT and Inequality References 10: International Double Taxation 10.1 Main Concepts 10.2 Double Taxation Agreements 10.3 Methods to Eliminate Double Taxation References 11: Transfer Prices 11.1 Main Concepts 11.2 The OECD Model 11.3 Transfer Prices Methods References 12: European Tax Harmonization 12.1 Historical Background of EU Tax Harmonization 12.2 VAT Harmonization 12.3 Corporate Tax Harmonization and CCCTB 12.4 Financial Transaction Tax 12.4.1 The Main Concepts of FTTs 12.4.2 How FTTs Potentially Operate? 12.5 The Main Advantages and Disadvantages of FTTs 12.5.1 The Main Literature on the Implementation of FTTs 12.5.2 The Proposal of the European Union 12.5.3 Tax Structure References