This book takes an MBA style strategy perspective by considering the tax, accounting, and finance trade-offs involved in tax planning. Reflected in this revision are all changes in the tax code. Also covered: extensive analysis of technical tax rules applied to corporate mergers and acquisitions; explanation of accounting for income taxes; discussion on College Savings Plans (529s); up-to-date material on new tax rates on dividends and capital gains; and much more. For individuals furthering their personal or formal education of tax strategy, investment banking, corporate finance, strategy consulting, money management, or venture capital. "Well-thought-out and articulated analysis of key tax issues faced by today's investment bankers. This book will serve as a guide for any new Wall Street entrant or seasoned professional interested in developing more efficient structuring alternatives for clients." — Chad Holm, Lazard LLC "I find SWEMS to be extremely valuable as a reference text. The authors do a terrific job highlighting important economic issues found in a multitude of tax-related transactions. The book is comprehensive and serves as a great starting point for countless tax issues. I recommend this book to any financial economist who is interested in taxes" — John Graham, Fuqua School of Business, Duke University "A superb blend of tax accounting, economics, and corporate strategy delivered in a readable form by preeminent researchers and thinkers in the field. This book is an essential guide for those interested in using taxes as a tool to sharpen their overall corporate finance strategy. Unlike other books on tax accounting, the distinguishing feature of this book lies in its lucid economics-based analysis of taxes" — S. P Kothari, Sloan School, MIT "Taxes and Business Strategy should be required reading for any private equity professional. Rife with examples, it is an easy-to-use guide that emphasizes the importance of effective tax planning in the business and investment decision-making process. The book is an instant classic, like Benjamin Graham's The Intelligent Investor, that forces the reader to rethink the art of the deal." — Jacobson, Vice President, Citigroup Private Equity ""Taxes and Business Strategy has been an important reference work since it was first published, and it gets better with each edition." — Eugene F. Fama, Robert R. McCormick Distinguished Service Professor of Finance, University of Chicago ""This book has led the way in unifying the way accountants and economists think about taxation. Academics of either stripe should digest its insights on how taxes affect business decisions, as should the people who actually have to make these decisions." — Joel Slemrod, University of Michigan Myron S. Scholes is a Partner of Oak Hill Capital Management and a Principal of Oak Hill Platinum Partners. He is also involved in the private and public investment activities of the Robert M. Bass organization. Professor Scholes has been the Frank E. Buck Professor of Finance Emeritus at the Stanford University Graduate School of Business since 1996. Professor Scholes is widely known for his seminal work in options pricing, capital markets, tax policies, and the financial services industry. He is co-originator of the Black-Scholes options pricing model, which is the basis of the pricing and risk management technology that is used to value and to manage the risk of financial instruments around the world. For this work, he was awarded the Alfred Nobel Memorial Prize in Economic Sciences in 1997. He was the Frank E. Buck Professor of Finance at the Stanford University Graduate School of Business from 1983 to 1996 and a Senior Research Fellow at the Hoover Institution from 1987 to 1996. He received a Ph.D. in 1969 from the University of Chicago where he served as the Edward Eagle Brown Professor of Finance in the Graduate School of Business from 1974 to 1983 and Director of the Center for Research in Security Prices from 1976 to 1983. He was an Assistant and Associate Professor of Finance at Sloan School of Management, MIT, from 1969 to 1974. Professor Scholes is a member of the Econometric Society and served as President of the American Finance Association in 1990. Professor Scholes has honorary doctorate degrees from the University of Paris, McMaster University, and Louvain University. Professor Scholes has consulted widely with many financial institutions, corporations, and exchanges. He was a Principal and Limited Partner at Long-Term Capital Management LP, an investment management firm, from 1993 to 1998. From 1991 to 1993, he was a Managing Director at Salomon Brothers, a member of Salomon's risk management committee, and Co-Head of its Fixed Income Derivatives Sales and Trading Department, where he was instrumental in building Salomon Swapco, its derivatives intermediation subsidiary, and in expanding its derivative sales and trading group. Mark A. Wolfson is a Ma