ACCT 708: Taxes and Business Strategy Master Syllabus
Course Instructor:
Office Number:
Office Hours:
Email:
Course Meeting Times:
Course Website: Canvas
Required Text: Pearson’s Taxes and Business Strategy, #th edition. Scholes, Wolfson, Erickson, Hanlon, Maydew, Shevlin
I. Course Introduction and Objectives
George Mason University Catalog Description
Provides a framework for making managerial decisions in a global tax environment. Examines business decisions such as location of facilities, employee compensation, mergers and acquisitions, capital and asset structure, and business form. Focuses on tax planning concepts and the effect of taxes on business decisions.
Course Goals (in line with those discussed with the MIT Sloan course)
Traditional finance and other business courses analyze a broad spectrum of factors affecting business decisionmaking but typically give little systematic consideration to the role of taxes. In contrast, traditional tax accounting courses concentrate on tax consequences while ignoring the richness of the context in which tax factors operate. The objective of this course is to bridge this gap by providing a framework for recognizing tax planning opportunities and applying basic principles of tax strategy.
The key themes in this conceptual framework are:
- All Parties - Effective tax planning requires the planner to consider the tax implications of a proposed transaction for all parties to the transaction. In many cases, it is differences in tax status that create tax arbitrage opportunities.
- All Taxes - Effective tax planning requires considering both explicit taxes (taxes paid directly to the government) and implicit taxes (taxes paid indirectly in the form of lower before-tax rates of return on tax-favored investments).
- All Costs - Effective tax planning requires the planner to recognize that taxes represent only one among many business costs, and all costs must be considered in the planning process.
The course begins by defining important terms for this conceptual framework (e.g., implicit taxes, tax clienteles) and offering a brief summary of how tax rules are developed and enforced. We then review concepts for decision making from finance (e.g., future value and compound interest calculations) and adjust these calculations to incorporate a role for taxes. We use these concepts to compare various decisions by individual taxpayers and firms related to: investment or savings, compensation, how to organize a business, corporate operations, and capital structure. We also focus time on understanding nontax cost trade-offs from tax planning.
An ultimate goal of the course is to provide you with an approach to thinking about taxes that will be valuable even as the tax laws change. A useful by-product of this approach is the ability to think critically about various tax provision changes with the recent tax reform.
Laptop Policy
See the most recent laptop policy on the Costello Graduate Policies, Procedures, and Forms.
Browser + Webcam Requirement
This course requires the use of LockDown Browser and a webcam when exams are online. The webcam can be the type that is built into your computer or one that plugs in with a USB cable.
Watch this brief video to get a basic understanding of LockDown Browser and the webcam feature.
LockDown Browser Download Instructions
Download and install LockDown Browser from here.
Once Installed
- Start LockDown Browser
- Log into Canvas
- Navigate to the test
Note: You won't be able to access tests with a standard web browser. If this is tried, an error message will indicate that the test requires the use of LockDown Browser. Simply start LockDown Browser and navigate back to the exam to continue.
Guidelines
When taking an online test, follow these guidelines:
- Ensure you're in a location where you won't be interrupted
- Turn off all other devices (e.g. tablets, phones, second computers) and place them outside of your reach
- Before starting the test, know how much time is available for it, and also that you've allotted sufficient time to complete it
- Clear your desk or workspace of all external materials not permitted
- Remain at your computer for the duration of the test
- If the computer, Wi-Fi, or location is different than what was used previously with the "Webcam Check" and "System & Network Check" in LockDown Browser, run the checks again prior to the exam
To produce a good webcam video, do the following:
- Avoid wearing baseball caps or hats with brims
- Ensure your computer or device is on a firm surface (a desk or table). Do NOT have the computer on your lap, a bed, or other surface where the device (or you) are likely to move
- If using a built-in webcam, avoid readjusting the tilt of the screen after the webcam setup is complete
- Take the exam in a well-lit room, but avoid backlighting (such as sitting with your back to a window)
Remember that LockDown Browser will prevent you from accessing other websites or applications; you will be unable to exit the test until all questions are completed and submitted
Getting Help
Several resources are available if you encounter problems with LockDown Browser:
- The Windows and Mac versions of LockDown Browser have a "Help Center" button located on the toolbar. Use the "System & Network Check" to troubleshoot issues. If an exam requires you to use a webcam, also run the "Webcam Check" from this area
- Respondus has a Knowledge Base available from support.respondus.com. Select the "Knowledge Base" link and then select "Respondus LockDown Browser" as the product. If your problem is with a webcam, select "Respondus Monitor" as your product
- If you're still unable to resolve a technical issue with LockDown Browser, go to support.respondus.com and select "Submit a Ticket". Provide detailed information about your problem and what steps you took to resolve it.
II. Grades1
A ≥ 90
B ≥ 80
C ≥ 70
F < 70
Grading Breakdown
| Quizzes (using the average after dropping the lowest 1) | 15% |
| Assignments (using the average after dropping the lowest 1) | 15% |
| Midterm | 35% |
| Final Exam | 35% |
Quizzes
There will be 8 reading quizzes throughout the mod, typically taken online in Canvas.2 These quizzes will cover concepts from the chapter reading. There are no make-ups. But, I will drop the lowest quiz grade automatically to compensate for having no make-ups. See the make-up policy in the course policy list for an exception to this policy.
Assignments
There will be 9 out-of-class assignments throughout the class.3 All but one of these assignments will involve a mix of exercises (like those similar to calculations and discussion during class) and may involve case problems that apply these calculations to specific individual and firm taxpayer circumstances. These are more detailed than the quiz problems (e.g. involve calculations and story problems for different taxpayers) and are intended to give students regular feedback on their understanding of the material prior to exams. In addition, this will help the instructor to assess how the class as a whole is grasping certain concepts as we proceed further with chapter material. As with the quizzes, there will be no make-ups, which is why I drop the lowest assignment grade. See the makeup policy in the course policy list for an exception to this policy.
One of the assignments will be an “Ethics Assignment” that is not based on calculations from class but instead uses Treasury Circular 230 to assess whether decisions that needs to be made by various tax preparers in relation to their clients are ethical or not. This assignment will take place in Week 4 outside of class time that week that will be used for Midterm 1.
1Plusses and minuses will be used only in “borderline” cases as determined by the instructor. They will only be used in cases where the plus or minus helps the student. In other words, if a student’s score meets the threshold above (say, an 81% final grade), then the student has earned no less than that grade (in the 81% case: B), having crossed the threshold. Below the threshold, and on the borderline, a plus or minus will be given solely at the instructor’s discretion, based on factors like grade trends, distributions, participation/attendance, etc. Student lobbying efforts, however, play no role in final letter grade determinations.
2The number could vary depending on whether we make it through all the planned chapters or not.
3The number could vary depending on whether we make it through all the planned chapters or not.
Midterm
The midterm will be taken in-person during our normal class time on EXAM DATE 1. I will provide more information on details in advance of the exam. See the course policies below regarding make-up exams. Accommodations can be made for students who have more than two exams on the same day or have a specific academic conflict, but will not be made for recreational or convenience purposes (like “I planned to travel that weekend to visit a friend”). It is your responsibility to be aware of the dates provided in the syllabus and the quiz/assignment due date schedule.
Final Exam
The final exam will be taken in-person during our normal class time on EXAM DATE 2. I will provide more information on details in advance of the exam. It will primarily cover material since the Midterm. As such, it is not comprehensive insofar as it will not have detailed questions focused on testing pre-Midterm exam material, but some questions on post-Midterm material may still require a general understanding of pre-Midterm material (e.g., what is a tax rate?). Accommodations can be made for students who have more than two exams on the same day or have a specific academic conflict, but will not be made for recreational or convenience purposes (like “this is my last exam of the week, and I’d like to move it up near my other exams so I can finish earlier”).
III. Course Policies
Attendance
The class moves at a fast pace given the nature of an eight-week mod. So, missing a week worth of material can put you substantially behind if you don’t make arrangements outside of class to get caught up. While there is no formal participation grade, if you miss a class, it is your responsibility to stay up on the material, such as arranging with another student to get a copy of course notes and reaching out to me to set up an office visit to go over questions.
General Make-Up and Extra Credit Policy
As a general policy, there will be no make-up quizzes, assignments, or exams. There will also be no extra credit assignments. This is why I drop the lowest grade automatically without requiring documentation for the related circumstances (e.g., for a job interview, a single sick day without documentation like a 24 hour stomach bug, attending a wedding, etc.). In the event of serious illness that goes beyond a 48 hour period (such as COVID-19) or with extenuating circumstances (e.g., a family emergency), I will need appropriate 5 documentation (e.g., a doctor’s note related to the illness, etc.) outlining the related circumstances and the period where it may interfere with the student’s ability to complete work. In these cases, if the appropriate documentation is provided before final grades are due for the mod, I will consider dropping the related quizzes, assignments, or exams, which will be graded as a 0 until the documentation is received, that fall within that related period in the documentation and base the student’s final grade on the remaining completed work outside that period under the normal grading rule (e.g., weighting the remaining 6 assignments that counted, equally, to equate in total to 15% of the overall grade covered by the assignment category). If the amount of time documented to be missed represents a substantial portion of the semester (e.g., where the student will not be able to complete at least 2/3 of the work for the course) whereby I believe that the remaining portion of graded work the student is responsible for is too limited for me to make a fair assessment of their performance with the class content, then I will discuss alternatives with the student (e.g., withdrawal from the class for the mod in a way that mitigates the negative impact on their grade to the best I can at that point in the mod and having the student take an alternative elective in mod 3 or 4).
IV. Tentative Course Schedule*
| Topic Description | |
| Week 1 | Introduction to Tax Strategy – Ch. 1 and Tax-Planning Fundamentals – Ch. 2 (2.1 and 2.3 only for Ch. 2) |
| Week 2 | Returns on Alternative Savings Vehicles – Ch. 3 Nontax Costs of Tax Planning – Ch. 7 |
| Week 3 | Implicit Taxes and Clienteles, Marginal Tax Rates, and Arbitrage - Ch. 4. Going over assignments A1-A3. |
| Week 4 | MIDTERM (Ch. 1, 2, 3, and 7) in-person during normal class time. After exam day but prior to DATE (so not covered on the Midterm): Listen to a short, recorded lecture on ethics for tax practices and complete the related Ethics Assignment. |
| Week 5 | Compensation Planning – Ch. 8 |
| Week 6 | Pension and Retirement Planning – Ch. 9 Going over assignments A4-A5. |
| Week 7 | Choosing the Optimal Organizational Form – Ch. 5 Corporations: Formation, Operation, Capital Structure, and Liquidation – Ch. 6 Going over assignments A6-A8. Will wait to post discussion of A7 and A8 until the later part of this week after due dates for these assignments to help for student preparation for the final exam. |
| Week 8 | FINAL EXAM (Ch. 4, 8, 9, 5, and 6) in-person during normal class time. After exam day but prior to DATE (so not covered on the Final): Listen to a recorded lecture on current tax provisions. |
* The instructor reserves the right to make any necessary changes to the syllabus and course schedule with appropriate announcements in class and on Canvas.
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