Strategic Tax Management.

1. Why there is tax implications on the part of the investor in equity financing?

2. What is the tax benefit for the corporation why it has to analyze its source of financing?

3. What are the non-deductible interest expenses?. Cite at least 2 and explain

4. Explain tax implications on the part of the creditor/depositor.

5. Compute for the tax due. Net Sale P1.4billion, Cost of Sales 560million, Allowable deductions 150million. Assuming that the corporate tax rate is 25%