7 THE EFFECTS OF TAXATION
This topic has been included for the sake of completeness. However, it can safely be skipped by those concerned with non-taxable organisations. Guidance on tax matters should always be sought from a qualified person.
When you have studied this chapter you should be able to:
- explain why it is important to understand the effects of taxation on IT and other investments undertaken by tax-paying organisations;
- describe representative principles of company (corporation) tax;
- describe representative effects of corporation tax on the profit and cash flows of a proposed IT, or other, investment;
- describe, using the above representative principles, the after-tax value added to shareholders by the investment, and ...