Effect of Taxes on Corporate Investment Decisions (Essay Sample)
what are the Effect of Taxes on Corporate Investment Decisions? This essay required me to give in brief, some offects of taxes on decisions made by corporate ORGANISATIONS. I was asked to do an essay and use at least two sources.
In the modern corporate world, making an efficient capital allocation is one of the most important investment functions as it determines the organizations’ growth potential and their ability to achieve their strategic sustainable goals. However, these investment decisions are heavily dependent on the tax policies within the countries that they operate in. Unfavorable and complex tax policies such as high corporate taxes rates reduce medium to long-term investments (also known as capital investments) whereas low tax rates lead to increased corporate investments in long-term projects.
Effect of Taxes on Corporate Investment Decisions
In the modern corporate world, making an efficient capital allocation is one of the most important investment functions as it determines the organizations’ growth potential and their ability to achieve their strategic sustainable goals. However, these investment decisions are heavily dependent on the tax policies within the countries that they operate in. Unfavorable and complex tax policies such as high corporate taxes rates reduce medium to long-term investments (also known as capital investments) whereas low tax rates lead to increased corporate investments in long-term projects.
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