Tax Planning

 

The definition of tax planning is quite simple. It is the analysis of one’s financial situation from the tax efficiency point-of-view. Tax Planning affects all facets of your financial affairs. You may be worried about the impact that rises in property values are having on gifts or inheritance tax, how best to dispose of shares in a business or the most efficient way to pass on your estate.Whatever your needs, having access to a wide range of tax expertise and being able to structure your personal tax affairs effectively can save you time and effort, in addition to having a considerable impact on your tax bill.Tax planning is the legal process of arranging your affairs to minimise a tax liability. There is a wide range of reliefs and provisions that are available to legitimately reduce a tax liability without straying into the rather more challenging area known as tax avoidance.Examples range from simply choosing a year-end date early in the tax year to maximise the period from earning profit to paying tax, to arrangements to shelter an appreciating asset from inheritance tax. tax planning refers to manipulate business processes and transactions tax debt of the taxpayer in order to be in a minimal amount, but still within the framework of tax regulations. However, tax planning can also be interpreted as the fulfillment of tax obligations planning is complete, correct and timely manner so that it can optimally avoid waste of resources.Tax planning is the first step in tax management. Management of the tax itself is a means to fulfill tax obligations properly, but the amount of tax paid can be minimized to obtain the expected profit and liquidity. The next step is the implementation of a tax obligation (tax implementation) and control of tax (tax control). In the planning stage of this tax, do the collection and research on the tax regulations. The goal is to have the kind of action the tax savings will be made. In general, the emphasis of tax planning is to minimize tax liabilities.