RSM424H1 Lecture Notes - Lecture 2: Tax Avoidance, General Judgment, Fide
11 Jun 2017
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Document Summary
Anticipation: all financial investments have a beginning, and activity period, and an end. From the outset, one must try to envision the complete cycle, even if the time frame is long. Flexibility: any objective can be achieved in a number of different ways. It is therefore highly worthwhile to seek out alternative methods of achieving particular goals. Speculation: one must be able to anticipate the tax effects, if any, should events turn out to be different from the expected. Applying the eighth wonder of the world: eighth wonder of the world is compound interest, achieving a good return on investment is important, but the ability to reinvest that return is essential for wealth accumulation. Obviously, the amount that is available for reinvestment is affected by the tax cost: respect for the time value of money is central to tax planning.
