Time value of money and Forum on Harmful Tax Practices: Difference between pages

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imported>Doug Williamson
(Update - source - Association of Corporate Treasurers - email from Naresh Aggarwal 16 Feb 2022.)
 
(Remove out of date material.)
 
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''Investment and funding appraisal.''
''Tax - anti-avoidance''.


(TVM).  
(FHTP).


Time value of money is the concept that the value of money is linked to time because of its capacity to earn interest over time.  
The Forum on Harmful Tax Practices is the body established by the Organisation for Economic Co-operation and Development (OECD) in 1998 to review the compliance of tax jurisdictions with its guidelines on transparency and other aspects of tax structuring.


Thus, a given amount of money available today is worth more than a given amount of money to be received tomorrow, because the amount available now can be invested immediately.


<span style="color:#4B0082">'''''BEPS Action 5'''''</span>


The time value of money is reflected in the charging of interest for the use of money, and also in discounted cash flow analysis.
:"BEPS Action 5 is one of the four BEPS minimum standards which all Inclusive Framework members have committed to implement. One part of the Action 5 minimum standard relates to preferential tax regimes where a peer review is undertaken to identify features of such regimes that can facilitate base erosion and profit shifting, and therefore have the potential to unfairly impact the tax base of other jurisdictions."


:''OECD - 29 January 2019''


All other things being equal, the time value of money means:


*Earlier receipts are better than later ones, for the one receiving.
==See also==
* [[Base erosion and profit shifting]] (BEPS)
* [[Business in Europe: Framework for Income Taxation]]
* [[CbC reporting]]
* [[Diverted profits tax]]
* [[G20]]
* [[Organisation for Economic Co-operation and Development]]
* [[Tax avoidance]]
* [[Preferential tax regime]]
* [[Worldwide interest cap]]


*Later payments are better - compared with earlier payments - for the one paying.


*Later receipts are worse, for the one receiving.
==Other resource==


*Earlier payments are worse for the one paying.
*[[Media:2015_10_Oct_-_Walk_the_line.pdf| Walk the line, The Treasurer, 2015]]


 
[[Category:Accounting,_tax_and_regulation]]
== See also ==
* [[Compound interest]]
* [[Discounted cash flow]]
* [[Float]]
* [[Future value]]
* [[Interest]]
* [[Investment appraisal]]
* [[Opportunity cost]]
* [[Present value]]
* [[Rate of return]]
* [[Return]]
* [[Simple interest]]
* [[Time value]]
 
[[Category:Corporate_finance]]
[[Category:Investment]]

Revision as of 04:24, 8 February 2024

Tax - anti-avoidance.

(FHTP).

The Forum on Harmful Tax Practices is the body established by the Organisation for Economic Co-operation and Development (OECD) in 1998 to review the compliance of tax jurisdictions with its guidelines on transparency and other aspects of tax structuring.


BEPS Action 5

"BEPS Action 5 is one of the four BEPS minimum standards which all Inclusive Framework members have committed to implement. One part of the Action 5 minimum standard relates to preferential tax regimes where a peer review is undertaken to identify features of such regimes that can facilitate base erosion and profit shifting, and therefore have the potential to unfairly impact the tax base of other jurisdictions."
OECD - 29 January 2019


See also


Other resource

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