Corporate Tax Planning

 

Tax planning is the development of strategies to minimize or defer the tax burden of a society. A company may have to face more or less taxes and in different periods of time depending on various circumstances. Tax planning analyzes them and designs the most favorable map for it. Tax spending is minimized and / or postponed as much as the law allows and as much as the company agrees.

With proper tax planning and through identifying appropriate opportunities for tax savings, the tax a business bears can be optimized. In this article, Jim Liggett CPA, an accounting professional and partner at Liggett & Webb P.A., explains how tax planning and compliance can help you manage your tax affairs efficiently and finding legitimate tax savings opportunities.

What is Tax Planning?

One of the main tasks of a tax consultancy is the tax planning of its clients. This is nothing more than the development and analysis of strategies to delay or minimize the tax burden of a company. In various contexts, always within the law, companies can face lower taxes or defer them over time if planned correctly. However, it is a much more complex tool than it may seem.

Two businesses engaged in the same activity and with similar characteristics can pay taxes very differently. This is usually because one of the companies has correctly planned its taxation. One of them has made decisions that have made face lower taxes or delay them over time. The other has not, but both continue to comply with the law in exactly the same way. How is this possible?

Certain types of companies have tax benefits, we can try to avoid double taxation, choose a legal form that benefits us in the future, defer the payment of taxes to increase liquidity, etc.

Now, it is important to know what tax planning is, but just as important is to know what it is not. Tax planning is not tax evasion or tax fraud. According to Jim Liggett CPA, the key thing is to analyze the variables to detect the best formula to minimize expenses by acting within the law. In the end, it consists of taking into account what will be the tax burden that a company will have to face, and what will be the best moment to do so.

As a Certified Public Accountant with extensive experience in the preparation of financial statements, taxation, and special engagements in preparing business valuations, Jim Liggett CPA has the breadth of knowledge and depth of experience to assist companies.