Drag the words into the correct boxes Failure to apply an at the time that decisions are made may provide inaccurate information for evaluation, and, result in a permanently inefficient tax structure. All decisions, whether related to revenues, expenses, asset acquisitions or divestitures, or debt and equity restructuring, will impact the amount and timing of the tax cost. A basic understanding of the and a decision maker's ability to apply tax issues to their area of responsibility. will significantly strengthen types of income type of business structure after tax approach individual Income Tax Act cash flow lower tax variable tax position Once profit is determined, the determines the amount of income tax that results. Decisions that reduce or postpone the payment of tax affect the ultimate value of the enterprise. Including the tax cash flow. return on investment delaying the payment of tax and, in turn, the as a part of the formal decision process will ultimately lead to improved after Shifting income to another time-period can be a benefit if it results in a lower rate of tax applying to the income. Even if a lower rate of tax is not achieved, a benefit may be gained from Shifting income to an alternate taxpayer for example, from an beneficially alter the amount and timing of the tax. to a future time-period. to a corporation may There is not always an advantage to transfer income to a corporation when the corporate tax rate is than that of the individual shareholder The entrepreneur should consider the in accepting the investment. of the potential investors. They will be taking a risk