Cost of equity and Tax computation: Difference between pages

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A calculation of tax payable by a business or by an individual with more complex tax affairs, usually prepared by the taxpayer or the taxpayer's agent.
The rate of return on a company’s net investments financed by equity which is required to service the providers of the company’s equity capital.
 
For example 10%.
Tax computations are normally submitted to the relevant tax authorities as supplementary material supporting a standardised summary tax return, for example a UK Corporation Tax return.
 
For a business which produces external accounts, the tax computations will commonly include:
 
# A summary adjustment of the (externally reported) accounting profits, to calculate the taxable profits.
# Additional detail and reconciliations of figures appearing in the accounts.
 
 
Sometimes known as a tax comp or tax comps.  


The cost of equity is often quantified in practice by using either the Capital asset pricing model, or the Dividend growth model.


== See also ==
== See also ==
* [[Capital asset pricing model]]
* [[Accounts]]
* [[Cost of debt]]
* [[Addback]]
* [[Dividend growth model]]
* [[Corporation Tax return]]
* [[Equity]]
* [[Disallowable expenditure]]
* [[Weighted average cost of capital]]
* [[Tax ]]


[[Category:Taxation]]

Revision as of 21:48, 29 September 2014

A calculation of tax payable by a business or by an individual with more complex tax affairs, usually prepared by the taxpayer or the taxpayer's agent.

Tax computations are normally submitted to the relevant tax authorities as supplementary material supporting a standardised summary tax return, for example a UK Corporation Tax return.

For a business which produces external accounts, the tax computations will commonly include:

  1. A summary adjustment of the (externally reported) accounting profits, to calculate the taxable profits.
  2. Additional detail and reconciliations of figures appearing in the accounts.


Sometimes known as a tax comp or tax comps.


See also