From tax computation to tax planning: the use of Monte Carlo simulations in tax education

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Abstract
Although many attempts to improve tax education have provided worthwhile enhancements for the classroom, few have addressed the need to train tax students in tax planning applications. Starting from the recognition that the critical parameters used by the tax practitioner are not deterministic, students can model probabilistic tax situations through simulation techniques. This paper illustrates how, using recent computerized developments, Monte Carlo simulations can make teaching advanced taxation both more realistic and more challenging. The philosophical shift that becomes possible with this technology is also consistent with recent suggestions to reorient accounting education toward active learning and skill development.