Taxes and the Role of Chief Financial Officer (Essay Sample)
It analyses the role of Taxes in an organization and how they affect the amount of net income it reports at the end of the accounting period. A form of an organization determines taxation rates applied to the company, and the CFO must ensure that all revenues and expenditures are accounted for appropriately. However, inaccurate statements may suggest a higher or lower tax liability, directly impacting the net income. The CFO should ensure that all the income and expenses have been accounted for appropriately, enabling an organization to calculate and pay the precise amount of tax liability.
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Taxes and the Role of CFO
Taxes affect the amount of net income an organization reports at the end of the accounting period. A form of an organization determines taxation rates applied to the company, and the CFO must ensure that all revenues and expenditures are accounted for appropriately. However, inaccurate statements may suggest a higher or lower tax liability, directly impacting the net income. The CFO should ensure that all the income and expenses have been accounted for appropriately, enabling an organization to calculate and pay the precise amount of tax liability.
The nature of funding selected by a corporation attracts different types of corporate tax. According to Hsieh et al., funding a business project through debt has a tax advantage since the company does not pay tax on the interests accruing from the loan (244). However, such an organization is required to remit its corporate tax to IRS as per the earnings before taxation. Furthermore, the corporation
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