PTMBA 2020 Business Tax Strategy

Business goes global, but taxes stay local. This provides opportunities as well as challenges for firms are highly relevant for executives when making decisions for firms operating internationally. For example, firms can avoid taxes by exploiting differences in tax rates around the world and shifting profits and business to low tax countries. At the same time, firms have to deal with potential double taxation on cross-border investments. In addition, many countries implement complex regulations to fight tax avoidance.

The course gives a general introduction to tax planning and tax strategy. It is the goal of the course to provide a general understanding of taxes. The course addresses students interested in general management positions as well as students with a focus in finance, accounting, investment banking, and strategy consulting. Importantly, the course does not require any prior tax knowledge. The course provides the participants with the necessary concepts that can be applied around the world.

After completing this course, students will have learned the basics of business taxation and tax strategy. Students will be able to understand and evaluate the impact of corporate and individual income taxes on key business decisions. They will be able to apply the covered concepts to different countries and settings that they will face in the corporate sector. Further, students will obtain a basic understanding of international taxation and tax planning concepts in the globalized business world.

Scholes, Wolfson et al. (2015)Schanz & Schanz (2010)

The underlying objective of this course is to provide high-level insights on taxation relevant for executives. The course combines interactive lectures with case studies and readings. Each session will focus on specific topics relevant for executives in corporate decision-making. The goal of this course is to discuss the theoretical background and apply it to key decisions in multinational firms.

The grading is based on two components:

(50%) Group Cases

We will have two in-class cases on which a group prepares written responses. The cases are handed out during class and you work on these cases in break out sessions during class time. There will be a debrief after the in-class case session.

(50%) Take home exam (individual)

The exam will focus on the lecture content and is a take-home exam that is to be worked in individually. I will provide more information on the exam during class.

The course does not require specific tax knowledge. It is one objective of this course to introduce the topic of business tax strategy. If participants have tax knowledge from their work experience, this will be very helpful in in-class interactions.