We identify various tax strategies and help to realise the potential benefits that can be attained. Our experienced tax accountants and tax advisors have years of experience dealing with a multitude of clients and situations.
Our tax planning team can help with immediate tax advice where necessary and we take a pro-active approach to tax planning with a tax plan. Typically our plan objectives and methodology are for your business to grow.
Objectives of The Tax Plan
A well structured tax plan has the following objectives:
- To create a forecast of your profit for the current financial year with a reasonable level of accuracy.
- Provides a strategy to legally minimise your tax.
- Once tax minimisation strategies have been explored, to plan for the resultant tax liability, particularly planning the lodgement of returns and the timing of cash flow upon your business.
- Alerts you to your taxation compliance obligations before they become due so that you are able to comply with all these obligations and that all matters are dealt with accurately and on a timely basis.
Methodology of The Tax Plan
- Your accounting records for the current financial year are briefly reviewed for reasonable accuracy.
- Past financial year records and trends are analysed.
- A projection of profit for the current financial year is made based on the above.
- The prima facie taxable position of each business entity and family member is summarised.
- We suggest a range of strategies to reduce your prima facie tax liability or increase your potential refunds.
- We review your lodgement obligations. Wherever possible we delay the lodgement of returns requiring the payment of tax until the latest date due and fast track the lodgement of refund returns. Notwithstanding this we will prepare all financial statements and tax returns in accordance with our normal timetable. This will be planned with you before the end of this financial year.
What is tax planning?
Tax planning is the strategic analysis and arrangement of one’s financial situation or business operations to minimize tax liability within the boundaries of the law. The objective is to align financial goals in the most tax-efficient manner possible, thus saving income and capital for other uses.
Tax planning is not limited to income tax but extends to other taxes such as capital gains tax, inheritance tax, and corporate taxes among others. It encompasses various considerations, including timing of income and expenses, selection of investments, and types of retirement plans. It also involves understanding the tax implications of various financial decisions throughout the year, not just during the tax season.
Effective tax planning requires a comprehensive understanding of the tax laws and the various financial instruments that can assist in tax minimization. Strategies may differ between individuals, corporations, and other types of organizations, but the underlying goal is the same: to reduce tax liability while ensuring compliance with the law.
Because tax laws and financial situations are complex and subject to change, tax planning often involves consultation with tax professionals or financial advisors.