MPA 622: Government Finance Business Taxation MPA 622: Government Finance

Types of Business Organizations Legal form for business: Sole proprietorship Partnership Corporation C-Corp S-Corp Issue of incorporation involves limited liability and taxation. Hybrid forms of business include: Limited liability partnerships (LLP) Professional corporations (PC)

Conflicts in Profit Calculation Points of View Financial Report Taxes

Depreciation Capital assets wear out and therefore represent a cost Types of Depreciation Straight line (SLN) Sum of years digits (SYD) Declining balance (DB) Double declining balance (DDB) Variable Declaring balance (VDB)

Taxes and Depreciation Bonus Depreciation Investment Tax Credits

Coordination of Personal and Business Income Taxation Personal income tax and no corporate income tax Corporate income tax and no personal income tax Different rates of taxation

International Business Income Taxation Territorial Worldwide

Transfer Pricing Within Organization Sales and Purchases Parent companies and subsidiaries

Possible Objectives Economic development Adequacy of tax revenue

Apportionment of Corporate Income Three Factors Sales Payroll Property

Implicit Spending Programs Rifle shot provisions Tax credit Depletion allowance Depreciation