Objectives of the tax planning:
Tax means an amount of taxpayer’s money to be paid to the government. Obviously, all the taxpayers want to reduce such amount of money to be paid. Tax planning is a tool that will help you to avoid tax evasion and reduce the amount of money to be paid to the government.
The tax planning is aimed to tax mitigation for the whole organization or holding company and development of effective tax calculation procedure for prompt analysis of financial consequences of any managerial decisions.
The tax planning is very effective at the stage of business modelling: professional approach will allow you to select the most appropriate place and form of incorporation, and to work out the organization’s development strategy. At the stage of business operations, the tax planning will allow you to significantly reduce the tax payments; however, at this stage the objectives are somewhat different and include selection of accounting policy, analysis of contract patterns and use of tax exemptions.
The tax planning provides for development of actions aimed to reduction of taxes to be paid using:
• Accounting policy tools.
• Tax privileges.
• Various taxation schemes.
• Tax-free (exempted) companies.
• Various forms of civil-law relations.
• Various subjects of business law.
- Drawing up of bylaws that will allow you to minimize the risks and to set forth the procedures of accounting, internal document flow and use of tax exemptions.
- Analysis of organization’s activities and reduction of rate and volume of expenses for organization maintenance in accordance with the developed tax mitigation program.
- Selection of optimum tax regime for a particular transaction with consideration for financial and commodity flow incoming and consuming schedule.
- Reduction of taxable income through accelerated depreciation and/or fixed asset revaluation.
- Selection of optimum configuration and structure of legal relationships and suitable forms of their interpretation within the framework of the applicable tax laws. Informational support of organization’s business through monitoring of applicable laws and regulations including amendments thereto and review of explanations given by the Russian Ministry of Finance and tax inspectorates.
- Development and implementation of various legal tax reduction schemes using the methods of organization’s business strategic planning.