The investment simulation is a quantitative method of the operational Tax planningwhich is mainly used in practice. After a concrete factual analysis, a case-related model calculation is carried out, which is based on the tax forms. Then the disposition of the individual case-related alternative action is simulated.
The tax burdens must, however, be determined separately for each individual tax type. The assessment simulation corresponds to an additive determination of the total burden; a sum of tax effects related to individual economic variables. This method is a classic, legal form-oriented tax burden calculation, which is suitable as a basis for national and international tax burden comparisons.
The exact results of the investment simulation are benchmarks for a specific issue. The tax burden of several types of tax becomes transparent. The high computational intensity, especially when changing the basic data and sizes, is reduced with the help of data processing. The tax type-oriented approach, however, prevents the disclosure of burden effects that relate directly to business planning variables.
Interactions between tax assessment bases are not discernible. The information value would be greater if the tax burden and relief effects were as in the Partial tax invoice could be derived.