Tax planning and advice is more than just completing the statutory returns (see "Statutory Returns"). Often it works in conjunction with your statutory returns but, whereas the tax returns are backward looking, tax planning and tax advice is forward looking. Things that could benefit from good tax planning are:
- What is the most tax-efficient way to finance equipment purchases?
- What is the most tax-efficient way to structure staff and owner's remuneration?
- Should you be trading as a sole proprietor, partnership, Close Corporation or Company? If you are a sole proprietor - should you be converting to a CC? If you are a CC should you be converting to a company? (see also "Initial Setting Up")
- How should business owners structure their personal tax affairs? (tax planning is not limited to business matters)
- Could it be advantageous for a small business to voluntarily register for VAT?
- What about depreciation?
Most accounting practitioners will proffer to offer these services, but it can be seen that tax planning can become very involved and complex and you need to ascertain if your accountant does actually have the experience necessary for your requirements.
Articles on Tax authored by our listed accountants:
What are Tax Deductible Expenses?
"Tax avoidance is the legal utilization of the tax regime to one's own advantage, in order to reduce the amount of tax that is payable by means that are within the law. The United States Supreme court has stated that "The legal right of an individual to decrease the amount of what would otherwise be his taxes or altogether avoid them, by means which the law permits, cannot be doubted."