Influence of Taxation on Investment Decisions by Entrepreneurs

• Authors: Burchart Renata , Lelusz Henryk
• Languages of publication: EN

Abstracts

EN

The example presented in the paper explains operation of the phenomenon known in the literature as the "taxation paradox" that means that the net present value of the investment after considering taxation is higher than the net present value after taxation or the other way round. The aim is to present that dismissing the taxation aspects in the decision taking processes may result in inappropriate choices or lead to resignation from a profitable investment project by investors.

Keywords

EN

taxation and investment decisions; net present value before taxation method; net present value after taxation method; linear and digressive depreciation method; taxation paradox

• Publisher: Uniwersytet Warmińsko-Mazurski w Olsztynie
• Journal: Olsztyn Economic Journal
• Year: 2013
• Volume: 8
• Issue: 1
• Pages: 35-44

Dates

published

2013-03-31

Contributors

author

Burchart Renata

• Department of Accounting, University of Warmia and Mazury in Olsztyn

author

Lelusz Henryk

• Department of Accounting, University of Warmia and Mazury in Olsztyn

References

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• Act of the 26th of July 1991 on personal income tax. DzU of 2012 item 361.
• Act of the 15th of February 1992 on corporate income tax. DzU of 2011 No 74, item 397.