Question

What are non-tax costs of tax planning?

Answer 1

Followings are the main non-tax costs of tax planning;

1. Organizational form costs;

Organizational form costs are also known as non-tax costs of tax planning.

2. Risk;

Risk of the investment is closely associated with taxation hene it is known as non-tax costs of tax palnning.

3. Administrative costs;

Legal, accounting, and data processing fees are known as administartive costs of tax planning.

4. Agency (incentive) costs;

Agency (incentive) costs are also known as non-tax costs of tax palnning.

5. Financial reporting costs;

Financial reporting costs are also non-tax costs of tax palnning.

6. Transaction costs;

Transaction costs are also part of non-tax costs of tax palnning etc.