Tax Planning, Imbalance And Production

Yoram Margalioth Eyal Sulganik Rafael Eldor Yoseph Edrey INTRODUCTION Ten years ago it was unusual to find mainstream corporate tax departments who would buy tax-sheltering ideas. Today, with the tax department viewed as a profit center, it is rare to find a major corporation that does not use them (Avi-Yonah, 2004). Such understatement of income creates inequity and inefficiency. The inequity is due to the fact that taxpayers vary in…