Thursday, 2 January 2020

Unit 3: Corporate Tax Planning

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Unit 3: Corporate Tax Planning


Tax planning is not a device to reduce tax burden but is in fact helps savings by investments in government securities.


Tax planning is an essential part of your financial planning.


There are also some areas of tax planning that are specific to certain business forms—i.e., sole proprietorships, partnerships, C corporations, and S corporations.


Tax planning also applies to various types of employee benefits that can provide a business with tax deductions, such as contributions to life insurance, health insurance, or retirement plans.


Tax Planning India is an application to reduce tax liability through the fi nest use of all accessible allowances, exclusions, deductions, exemptions, etc, to trim down income and/ or capital profits.


Corporate Tax Planning is the strategies to reduce the taxes.


Tax evasion is the general term for efforts by individuals, firms, trusts and other entities to evade taxes by illegal means.


Tax avoidance is a strategy which involves exploiting legal means of reducing taxes with the goal of minimising tax liability.


Double taxation is the levying of tax by two or more jurisdictions on the same declared income (in the case of income taxes), asset (in the case of capital taxes), or financial transaction (in the case of sales taxes).


Tax management refers to the compliance with the statutory provisions and includes maintenance of records in prescribed format.


Accounting Methods: Accounting methods refer to the basic rules and guidelines under which businesses keep their financial records and prepare their financial reports.

Corporate tax: It refers to a tax levied by various jurisdictions on the profi ts made by companies or associations.

Appendix A: Tax Rates for YA 2010 Corporate Tax Planning Double taxation: It is the levying of tax by two or more jurisdictions on the same declared income (in the case of income taxes), asset (in the case of capital taxes), or financial transaction (in the case of sales taxes).

Partnerships: A business organisation in which two or more individuals manage and operate the business.

Sole Proprietorships: A business structure in which an individual and his/her company are considered a single entity for tax and liability purposes.

Tax Rebates: A tax rebate may be a partial sum of money refunded to people from paid taxes, or it may be an amount by which you reduce your taxes before you pay them.

Tax avoidance: It is the legal utilisation of the tax regime to one’s own advantage, in order to reduce the amount of tax that is payable by means that are within the law.

Tax evasion: It is the general term for efforts by individuals, firms, trusts and other entities to evade taxes by illegal means.

Tax management: It refers to the compliance with the statutory provisions.

Tax planning: Tax planning is a broad term that is used to describe the processes utilised by individuals and businesses to pay the taxes due to local, state, and federal tax agencies.

Tax savings: The deduction a taxpayer can take on their tax form for interest paid on a home mortgage.


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