James Ryan M.

Alzona
BSMA 4-1

An Overview of the Savant Framework

 Taxation affects the cost of doing business- since businesses have to pay taxes
from the sale and also purchase of goods and services through value added tax
(treated as expense)
 Taxation affects a business from formation to termination- since these are
expenses, it can impact how the business operates and its subsequent liquidation
 Taxation affects virtually all forms of economic transactions- since transactions
are taxed based on certain rates
 SAVANT- stands for Strategy, Anticipation, Value Adding, Negotiating and
Transforming
 Decision makers need to stay focused on the firm’s strategic plan,
anticipating tax impacts across time for all parties affected by the transaction
 Managers add value by considering these impacts when negotiating the most
advantageous arrangement, thereby transforming the tax treatment of items to
the most favorable status
 SAVANT Principle aim is to maximize shareholder value- parallel with the
purpose of business

 Strategy- overall plan for deploying resources to establish a favorable position

and to achieve short-term and long-term objectives of an entity- this is consistent
with the ultimate aim of adding value to the entity
 Operational strategy- strategies aimed at the daily operation of the company
is vested upon the employees
 Corporate strategy- the long-term strategies of the company- what will
happen 5-15 years from now?- this is established among corporate executives
and owners
 International strategy- expansion of companies of its operation beyond its
jurisdiction and function- how will you expand your business outside of the
Philippines- has huge tax implications considering the expansion of
operations
 Anticipation- thinking and talking about something ahead of time, and either
taking action or being ready to respond at the time of the unforeseen
circumstance- unexpected results, abrupt changes in tax legislation, and evolving
trends- keeping In mind the value to be added to the entity
 Negotiating- bargaining or discussing between both sides regarding an issue until
an agreement is reached- preferably upon the terms and conditions that can add
value to the entity
 Shifting- passing on the burden of tax from one person to another- forward
or backward shifting (from buyer to seller or seller to supplier)
 Onward shifting- combination of forward and backward shifting
 Transforming- taking appropriate and legally feasible courses of action with the
view of changing the nature, function, condition and ultimately, the tax effects of
certain transactions, to one which would add more value to the entity