Introduction to Business Taxation

Deborah Schanz () and Sebastian Schanz ()
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Deborah Schanz: Chair of Taxation and Accounting
Sebastian Schanz: University of Magdeburg

Chapter Chapter 6 in Business Taxation and Financial Decisions, 2011, pp 215-263 from Springer

Abstract: Abstract This chapter deals with taxation of different legal entities. In detail taxation of sole proprietorships and partnerships on the one hand and corporations on the other hand are explained. We show how tax bases are defined, describe one-book and two-book accounting systems and further discuss advantages and disadvantages of the existing accounting systems. Moreover, we show how different types of corporate tax systems work and provide examples how countries apply the corporate tax systems discussed. Further, we discuss avoidance mechanism of triple taxation. After explaining the legal framework for corporations, we present a Standard Model for corporations taking taxes into account. In particular, we discuss the cases of financing the initial investment by retained earnings or new equity. Concerning distribution policies, we investigate immediate dividend distribution and retention of cash flows.

Keywords: Dividend Payout; Corporate Level; Double Taxation; Sole Proprietorship; Full Imputation System (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-642-03284-4_6

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DOI: 10.1007/978-3-642-03284-4_6

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