Page 261 - International Taxation IRS Training Guides

Basics of
Strategic

Global Tax
Planning (Cont’d)

 Sustained, predictable improvements in EPS

market capitalization
• Increase share price and total

• Possibly
boost executive compensation when tied to
EPS

 Reduce Tax Expense

• Tax
expense directly reduces net income, which
lowers EPS
unfavorably

 Control Costs

• Companies
try to manage costs efficiently (including
taxes)
to produce shareholder value
• Tax
costs can be managed efficiently through
permissible planning

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