Pay As You Earn (PAYE), Value Added Tax (VAT), and Corporation Tax are examples of taxes relevant to a business - Leaving Cert Business - Question B - 2011

The collection of PAYE requires businesses to invest administrative resources, potentially increasing operational costs. Furthermore, since PAYE is progressive, higher income individuals will incur more tax, which might affect employee retention for high-skill roles.

VAT is an indirect tax levied on the sale of goods and services. It is typically charged at each stage of production and distribution. Businesses collect VAT from consumers and subsequently remit this amount to the government.

The implications include additional administrative responsibilities for businesses to collect and remit VAT. Variations in VAT rates across different goods can complicate pricing strategies. Businesses that handle VAT efficiently could gain a competitive advantage.

Corporation Tax is a tax on the profits made by registered companies. It is calculated on the taxable income of the business, which is gross income minus allowable expenses. The revenue from Corporation Tax is vital for government funding.

Corporation Tax influences business decisions regarding reinvestment strategies; retaining profits for growth may incur higher taxes later. Furthermore, maintaining compliance with Corporation Tax regulations is critical to avoid legal issues. The rates and methodologies can also impact the attractiveness of a country for foreign investment.