1. Why is it important for the tax planner to know the tax consequences of a particular transaction not only to the entity employing the tax planner but also to the other party (or parties) to the...

1. Why is it important for the tax planner to know the tax consequences of a particular transaction not only to the entity employing the tax planner but also to the other party (or parties) to the transaction? Provide a real-world example to illustrate your answer.

2. Why is tax minimization different from efficient tax planning?

3. We generally think that taxes lower returns, which means that after-tax returns are lower than pretax returns. Is this always true, or can you provide counterexamples?