Basically, tax planning involves taking into account a number of options related to tax to establish when in particular, whether and finally, how to carry out personal and business transactions in order to lower or get rid of the tax problem. We are aware of the fact that many people operating small businesses tend to disregard tax planning. Thus, they just don’t think about it until it occurs to them that their tax is due for remission. Tax planning is a continuous process and having prior knowledge on the amount of tax you are supposed to pay at the end of a particular is very important. At gtimmons, we have made our tax planning services accessible to all at very low rates. Once you get to us, we assign you one of our tax planning accountants Ottawa to see you through your planning process.
As a renowned accounting company, we understand the benefits of reviewing your revenue and expenses on a monthly basis. In this case, we have made it easier for you by ensuring that an accountant is always at your service whenever need arises. We help you analyze the best way to enjoy full benefits of the supplies, credits and more so, the available discounts. Although it is legal to ignore tax planning, it is an offence to avoid tax using subterfuge, deceit or concealment means. In most cases, what separates the two – tax evasion and tax avoidance is when the IRS finally discovers that there was an intention for fraud by a business.
Below are the four areas IRS focuses on to establish any kind of fraud:
- Failing to submit report on a certain amount of revenue. This includes failure by shareholders to submit their dividend reports or the business owner’s failure to give report on a section of his or her daily business transactions
- Demanding fictitious deductions on an income. This includes overstatement of expenses incurred on travel by a sales representative or claim of a huge deduction by a tax payer for charitable contribution without any supporting document.
- When there appear accounting irregularities. For instance, when a business fails to keep sufficient records or if there appears a discrepancy in the business’ return amount report and the financial statement report.
- Improperly allocating income to a tax payer in a lower tax bracket. This occurs when an organization distributes funds to the shareholders’ family members.
In order to avoid falling victim to either of these fraudulent cases, you need to consult our tax planning accountants Ottawa for advice. And as a business owner you will find our business accountants very helpful.
Strategies for tax planning
We not only help you plan your tax, but also ensure to lead you through the various strategies available. If you are a small business owner, the good news is that we have developed a number of strategies that will see you through your taxpaying process. These strategies are aimed at:
- Keeping your tax rate fairly low.
- Reducing the amount of income to be taxed.
- Placing claim on the available tax credits.
- Being able to decide when to remit your taxes.
- Avoidance of common mistakes made during tax planning.
- Being in control of effects of the Alternative Minimum Tax.