- 20 Marks
STP – Feb 2021 – L2 – Q2 – Tax Strategies for New Business Formation
Discuss how the choice of business organization (company, partnership, sole proprietorship) impacts tax exposure, with relevant tax authorities.
Question
It is often said that an investor’s choice of the form of business organisation, has an impact on the tax exposure of the investment.
Required: With the aid of appropriate authorities, discuss the accuracy or otherwise of the above statement.
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