Abstract This article focuses on the theory tax planning. Tax planning can be defined as the tax-payer's capacity to arrange his financial activities in such a manner as to suffer a minimum expenditure for taxes. When the designation tax planning is used, it really means effective tax planning. All tax planning does not reduce the tax liability to the desired minimum level. The tax planning that is not cut properly to suit the individual taxpayer may have the ultimately adverse effect of maximizing the tax. Tax planning involves the use of foresight and consequently it is concerned with future matters. Unfortunately, tax planning is often the product of a certain amount of hindsight. The taxpayer who learns, much to his distress, too late about the six-months holding requirement for securing the long-term capital-gains advantage is apt to profit by his mistakes in his future activities. Having been burned once, he is ready and willing to engage in the tax planning process. Tax evasion and tax avoidance should be distinguished. All too often these terms have become interchangeable with each other in the minds of the taxpayer. The failure to make any distinction between these separate concepts works to the discredit of the tax planning process and may lead to serious legal consequences.

Reviews the book "Accounting for Corporate Income Taxes," by Thomas F. Keller.

The article focuses on several books related to accounting. Some of the books mentioned are, "Management Accounting Principles," by Robert N. Anthony, is identical in organization and presents several accounting problems and cases; "The Theory of Profit Determination on Long Term Contracts and an Appraisal of Australian Practice," by G.W. Beck, states that the percentage-of-completion method is the proper one for the determination of periodic profit on long-term contracts; "The Valuation of Property," by James C. Bonbright is a contribution in the field of applied and Institutional economics; "Management Information and Accounting," by R. Warwick focuses on cost accounting, which for a number of years has been a phenomena in transition; "SEC Accounting Practice and Procedure," second ed., by Louis H. Rappaport, presents information on current accounting practices and SEC policies in the U.S.; "Essentials of Financial Management," by Ernest W. Walker, covers the range of topics usually found in the popular finance texts, and at the same time presents a concise statement on managerial finance.