The Portable MBA in Finance and Accounting, 3rd Edition

352 Planning and Forecasting

CONCLUSION

Perhaps no taxpayer will encounter quite as many cataclysmic tax decisions in
as short a time as did Morris and Plant Supply. Yet, Morris’s experience serves
to illustrate that tax issues lurk in almost every major business decision made
by a corporation’s management. Many transactions can be structured to avoid
unnecessary tax expense if proper attention is paid to tax implications. To be
unaware of these issues is to play the game without knowing the rules.

FOR FURTHER READING

Gevurtz, Franklin A., Business Planning (New York: Foundation Press, 1995).
Jones, Sally M., Federal Taxes and Management Decisions (New York: Ir win/
McGraw-Hill, 1998).
Painter, William H., Problems and Materials in Business Planning,3rd ed. (Con-
necticut: West / Wadsworth, 1994).
Scholes, Myron S. et al., Taxes and Business Strategy(Upper Saddle River, NJ:
Prentice-Hall, 2001).

INTERNET LINKS

http://smallbiz.biz.findlaw.com FindLaw for Business
/sections/fn_taxes/articles.html

http://www.dtonline.com Deloitte and Touche Tax Planning Guide
/taxguide99/cover.htm

http://www.smartmoney.com/tax Smart Money.com tax guide

EXHIBIT 11.9 Reverse triangle merger.

Owned by

T’s stockholders Owned by

T’s stockholders

T SUB

S stock

Owned by

T

AA

S

Before After