Tax planning is the process of organizing the affairs of a taxpayer so that, as far as legally or commercially possible, the liability of the taxpayer to income and other taxes is minimised. – (definition from the Australian Master Tax Guide)
Some common strategies of reducing ones tax liability are:
- Reduce assessable income
- Increase deductions and offsets
- Divert income
- Select a tax planning vehicle
The implementation of these strategies differs from taxpayer to taxpayer depending on many variables. Tax planning should address each strategy and identify whether they are appropriate to each taxpayer undergoing the planning process.
Our tax planning service involves the following procedure:
- Review 9 months results
- Do a projection to 12 months
- Do a tax computation
- We then identify ways to both reduce and defer your tax bill
- We prepare a report for discussion at a meeting with you
- We prepare an action plan after the meeting
The benefits to you are:
- Often we are able to provide absolute tax savings
- Most times we can defer tax
- You will have a good indication of your tax position at year end
- No tax surprises
- No cash flow hic ups
