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Management

The document outlines the objectives of tax management in business, emphasizing compliance, efficiency, financial planning, risk reduction, and reputation enhancement. It distinguishes between tax planning, tax avoidance, and tax evasion, highlighting the legal and ethical implications of each. Additionally, it details the role of a tax manager and factors influencing effective tax management in Kenya, while explaining how effective tax management can enhance a company's financial performance.

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54 views2 pages

Management

The document outlines the objectives of tax management in business, emphasizing compliance, efficiency, financial planning, risk reduction, and reputation enhancement. It distinguishes between tax planning, tax avoidance, and tax evasion, highlighting the legal and ethical implications of each. Additionally, it details the role of a tax manager and factors influencing effective tax management in Kenya, while explaining how effective tax management can enhance a company's financial performance.

Uploaded by

makoriderrick90
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

KISII UNIVERSITY

REG:CB12/00151/21

TASK:SIT IN CAT

UNIT:BCOM415

[Link] of Tax Management in a Business Organization

The main objectives of tax management in a business organization include:

[Link] with the Law -To ensure the business meets all tax obligations as

required by law and avoids penalties or legal issues.

[Link] Efficiency-To minimize the tax burden through legitimate means,helping the

business save money.

[Link] Financial Planning -To align tax payments with the company's cash flow and

[Link] Reduction-To avoid unnecessary tax-related risks and maintain a good

relationship with tax authorities.

[Link] Reputation -To build trust with stakeholders by being a responsible

taxpayer.

[Link] Between Tax Planning,Tax Avoidance,and Tax Evasion

Tax Planning:This is the legal process of arranging financial affairs to minimize tax

[Link] involves using allowable deductions,exemptions,and incentives under the

law.

Tax Avoidance: This involves using loopholes or gray areas in the law to reduce tax

payments. It is technically legal but often considered unethical.

Tax Evasion: This is the illegal act of deliberately hiding income, inflating expenses, or

providing false information to avoid paying taxes. It can lead to heavy penalties or

imprisonment.

3. Role of a Tax Manager in a Large Organization


A tax manager plays a vital role in managing the company’s tax affairs. The main roles

include:[Link] Tax CompliancePreparing and filing accurate tax returns on time.

2. Advising Management

Giving advice on tax implications of business decisions and investments.

3. Tax Planning and Strategy

Developing legal tax-saving strategies.

[Link] with Tax Authorities

Handling audits, responding to queries, and maintaining communication with the


KenyaRevenue Authority (KRA).

5. Training StaffEducating accounting and finance staff on tax matters and updates.

4. Factors Influencing Effective Tax Management in Kenya

[Link] Policies and Tax Laws: Frequent changes in tax policies can affect how

businesses manage taxes. A stable tax system promotes better compliance.

2. Level of Expertise : Availability of skilled tax professionals improves the accuracy of

tax calculations and compliance

3. Technology and Record Keeping:Use of accounting software and proper

documentation simplifies tax filing and reduces errors.

[Link] Effective Tax Management Contributes to the Overall Financial Performance of

a CompanyEffective tax management contributes to the financial health of a company


in severalways: - Cost Reduction:

By minimizing unnecessary tax payments, the company saves money that can be

reinvested in the [Link] Cash Flow:Timely tax planning ensures the


company can manage its cash efficiently throughout

the year. - Risk Control:Reducing the risk of penalties and fines improves the company’s
profitability and

reputation. - Strategic Decision-Making:

Proper understanding of tax effects helps in making informed investment and

expansion decisions

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