Assignment taxation law Example | Topics and Well Written Essays - 500 words

Taxation law - Assignment Example Applying taxation law in the case of Concrete and Transport Ltd, analysis of the implications of the company decision on its activities is necessary. In deciding on whether to carry out repairs, the company needs to consider taxation on the materials required for carrying out the work. In the second option of building new production plant, more capital is necessary to cater for direct taxation, that is, to cater for new premises, and taxation on the materials needed in the construction (Jonathan & Bowen, 2008). Taxation law differs with operations in business. According to Erdős (2011), for a company to venture into railway transport services, it must be a corporation. For corporations, there is double taxation on all the profits including money for company expenses such as expansion. The management of corporations is a different lawful body and not the owners. Therefore, expanding the railway line means increased taxation to the company. In mechanization, taxation law differs with countries. In developed countries, for example, there is no over taxation. In developing countries, there is over taxation of the equipment used to encourage the creation of more job opportunities (Jonathan & Bowen, 2008). According to Schanz (2011), taxes have a significant factor in decision-making. This is because investment decisions are prone to distortion by taxation. In any business, the owners of the business they do undergo taxation or sail through without taxation. Therefore, it is necessary for the Concrete and Transport management to do analysis of their proposed company expansion to determine the after tax returns on the capital expected in the new idea. Expanded business does not guarantee increased returns due to taxes levied. As the business grows, there is a high chance of increased taxes, and in some cases, double taxation occurs, for example, in corporations (Schanz, 2011). Tax research is