What Is Tax Planning?
If you fail to plan, then plan to fail!!!! The success of your business depends on it!
Below are our view on Tax Planning from the Accounting & Advisory Team at Robley Baynes Tax & Accounting Services
Tax Planning is a broad term that is used to describe the Process utilised by Individuals and businesses to pay the taxes due to the Tax authorities e.g. Board of Inland Revenue.
The process includes such elements as Managing Tax implications, understanding what type of expenses are Tax-Deductible under current regulations. In general planning for Taxes in a manner that ensures that the amount of tax due will be paid in a timely manner.
Thus, Planning for Taxes involves knowing:
- Income that currently Qualify for Taxation
- Income That currently Exempt from Taxation
- Types of expenses that may be Legitimately considered as Deductions
- Circumstances that have to exist in order for the deduction to be Claimed on the Year-End Tax Return
For Individuals, this can mean income sources such as salaries, wages and tips, bonuses, investment profits (Sole Trader Businesses), and other sources of Income as currently defined by law.
For Companies, this can mean All sources on Income pertaining to the line of Trade.
Not all deductions may be claimable by every business and should be assess on a case by case basis.
At Robley Baynes we help you navigate through your Tax Planning processes to reduce your overall Tax Impact.