Taxation of Companies and Partnerships

Graham Gibbs - Reflective Cycle

Description

For the group assignment for this module, we were given a case study of a company, where we would had to reduce the tax payment of the company. For tax computation, due to the number of policies available to reduce tax liability, there are various methods of calculating the tax payment. It was difficult to weigh all the pros and cons of each methodology to ensure that the best method would be used. The best method in this case, would be the method with the least tax liability for the company.

What sense can you make of the situation?

We first discussed among ourselves to decide on the best methodology, by weighing the pros and cons of the different methods available. Once it was decided, we would then start working on the tax computation. However, during our discussion, we failed to take into consideration certain other methodologies that was not as common and hence was not frequently mentioned in class. Upon discussion with other classmates, we realised that the agreed upon method might not be the best method after all. Hence, we altered our answer to the method with the least tax liability.

Conclusion

As we realised that our method was flawed hours before the deadline, this resulted in everybody panicking. Hence, resulting in poor decision making. Eventually when we receive our marked group assignment, we realised that our previous method was actually the correct answer.

What will I do differently in the future

Through this, I felt that it was important to ensure that all methods, including uncommon methods that are not mentioned in class in depth are taken into consideration as well. Despite the methodology being not as frequently used by companies, it was crucial to at least understand and know that such a methodology exists.