Taxology and Hammering at Financial Decisions

Abstract

Income tax plays a dominant role in shaping financial policies of large corporations. The decisions may be, financing, investment or dividend, depend to some or the other extent on income-tax policies of the Government. The purpose of study is to highlight the importance of the tax factor in financial management of large corporates and to know the bearing different tax variables have on various types of major financial decisions, so that, on one hand, the corporations can thoroughly analyze the impact of tax provisions on financial decision-making to arrive at sound decisions and on the other, the Government can shape its tax policies in a manner most beneficial for the country as a whole. The conclusions derived confirm the hypothesis that sound tax planning and management leads to better financial management. For business to be successful, regular, rather constant, analysis of tax implications is a Must for Large Corporations.