1. MPA 622: Government Finance
Business Taxation
MPA 622: Government Finance

2. 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)

3. Conflicts in Profit Calculation
Points of View
Financial Report
Taxes

4. 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)

5. Taxes and Depreciation
Bonus Depreciation
Investment Tax Credits

6. 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

7. International Business Income Taxation
Territorial
Worldwide

8. Transfer Pricing Within Organization Sales and Purchases
Parent companies and subsidiaries

9. Possible Objectives
Economic development
Adequacy of tax revenue

10. Apportionment of Corporate Income
Three Factors
Sales
Payroll
Property

11. Implicit Spending Programs
Rifle shot provisions
Tax credit
Depletion allowance
Depreciation