This topic has been included for the sake of completeness. However, it can safely be skipped by those concerned with non-taxable organisations. Guidance on tax matters should always be sought from a qualified person.


When you have studied this chapter you should be able to:

  • explain why it is important to understand the effects of taxation on IT and other investments undertaken by tax-paying organisations;
  • describe representative principles of company (corporation) tax;
  • describe representative effects of corporation tax on the profit and cash flows of a proposed IT, or other, investment;
  • describe, using the above representative principles, the after-tax value added to shareholders by the investment, and ...

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