| Tax planning has been in the eye of the storm | | | | Hire a lawyer and experience tax consultant when |
| recently, owing to the many corporate scandals that | | | | you draw up tax plans. You do not want the |
| have shaken the market. If you're small business has | | | | authorities knocking on your door for implementing |
| franchisees in another country that makes tax planning | | | | aggressive tax schemes. |
| even more difficult. To avoid problems with tax | | | | Once you have taken care of the legal issues of tax |
| authorities, tax planning should be made as a part of | | | | planning, you need to come up with a good tax plan. |
| corporate planning. | | | | Here are some ways to save on taxes without |
| There are two aspects to corporate tax planning; legal | | | | crossing the legal barrier. |
| and tax breaks. While every business owner wants | | | | Tax planning: How to Save Taxes; |
| tax breaks, tax planning should always be done, | | | | 1) Capital Losses |
| keeping the legality of it in mind. | | | | If you suffer capital losses, then the tax will be |
| Legal Tax Planning; | | | | calculated against capital gains in the next financial |
| How to ensure that the tax breaks you are applying | | | | year. If you still suffer capital losses, then you can |
| for are legal? How to ensure that your corporate tax | | | | reclaim the taxes paid when you had capital gains on |
| planning strategies are not crossing legal boundaries? | | | | your business. |
| These are important issues in corporate tax planning, | | | | 2) Share your income with a lower paid partner, so |
| and here are some ways to address them. | | | | that he or she can invest his or her income and earn |
| 1) Appoint A Tax Advisor | | | | investment profits. Your partner will then need to pay |
| Your tax advisor should be able to guide you in tax | | | | just the investment tax. |
| planning, while ensuring that you unintentionally do not | | | | 3) Tax Breaks |
| do anything illegal. | | | | Utilize all possible tax breaks. Most businesses are not |
| 2) Detailed Report | | | | aware of the taxes breaks that are available to them. |
| Make a detailed report about your income to the tax | | | | Tax breaks are especially aimed towards the growth |
| advisor. This will help him or her take informed decision | | | | of small businesses. |
| regarding tax-planning strategies for your business. | | | | The government has many special schemes and tax |
| 3) Customization | | | | breaks for the benefit of small businesses. This |
| Tax strategies that fit another business may not fit | | | | reduces the need for aggressive tax measures that |
| yours. Customized tax planning enhances your | | | | fall into the grey area. The best tax planning method is |
| business. | | | | to keep it legal and utilize all the tax breaks that the |
| 4) Records | | | | tax authorities allow. If you need to know more about |
| Keep proper records of the tax-planning document so | | | | tax planning for your small business, you should consult |
| that you can revise them and go through them | | | | a tax advisor who specifically counsels small business |
| whenever you need to. | | | | owners. |
| 5) Ensure legality | | | | |