TAX - Mindmap in A Level and IB Business Studies

Get Revising

View mindmap

EFFECT ON BUSINESS OF CHANGES IN TAXATION
- CUSTOMER SPENDING
- PRICES
- COSTS
  - VAT WILL RISE COSTS
    - PRICE INCREASE
      - LOWER DEMAND
  - INCREASE = COSTS
- SHARES
  - INCREASE CAPITAL
    - DELAY SALE OF SHARES
    - DETER SHAREHOLD
      - LESS INVESTMEN
- IMPORTING AND EXPORTING
  - EXPORTS
    - BENEFIT
- OPERATION AND EMPLOYEES
  - INCREASED NIT
    - WONT EXCESS STAFF
      - UNEMPLOYMENT RISE
        GOVERMENT PAYS MORE BENEFITS
- TAX AVOIDANCE
  - MAY TRY TO AVOID
    - GET FINES
      - LONG TERM
        COSTS MORE
- SPENDING
  - INCREASED COSTS
    - LESS RETAINED PROFIT
      - LESS PROFIT MARGIN
INCREASE INCOME
- INCREASED DISPOSABLE
  - INCREASED DEMAND
  - INCOME TAX
- CUSTOMER SPENDING