ACCOUNTING 7 Lecture Notes - Lecture 5: Tax Efficiency
Document Summary
Tax management refers to the strategies and actions taken by individuals or businesses to minimize their tax liabilities, while still complying with tax laws and regulations. The impact of tax management on income production can be significant, as taxes can represent a significant portion of a business"s or individual"s income. There are several ways in which tax management can affect income production. First, effective tax management can help to lower the overall tax burden on a business or individual, which can increase net income and boost profitability. For example, by claiming all eligible tax deductions and credits, a business or individual can lower their tax liability, which can increase the amount of income that is available for reinvestment or personal use. In addition to lowering the overall tax burden, effective tax management can also help to maximize the tax efficiency of income production.
