Several factors can influence a business's tax base:
Revenue Streams: Different sources of income, such as sales, investments, and assets, contribute to the tax base. Deductions: Expenses like operating costs, salaries, and other allowable deductions can reduce the taxable income. Asset Valuation: The way assets are valued impacts the tax base. For example, using fair market value versus book value can yield different tax bases. Regulatory Changes: Changes in tax laws and regulations can expand or contract the tax base.