There is little doubt that no matter your business, professional tax planning advice can often significantly help increase the profitability of both your business and indeed also benefit your own individual tax position. Tax planning advice relates not just to the international aspects of your business but very often starts with considering the domestic tax incentives available in your own country, your own long-term financial aims and of course personal circumstances. Indeed, tax planning very often is not totally driven by tax mitigation but could well include environmental, ethical, asset protection and other issues, which should be considered by your professional legal and accountancy advisors.
KEY FACTORS THAT A TAX PLANNER SHOULD CONSIDER
The personal circumstances of any client or business will of course vary greatly, however there are some generic questions that a professional tax planner will always ask including:
- The domicile of the client, as this can have consequences on how the client will be taxed especially in countries such as the United Kingdom and Republic of Ireland. In the case of both countries, non-domiciled but ordinarily resident individuals need only be taxed on their remitted income where either (in the case of the UK) they have only lived in the UK for less than 7 out of the previous 9 years or even better, in the case of Ireland, where there are no time restrictions;
- The location of the end clients, which can have significant implications on overall tax exposure;
- Where the goods and/or services originate and/or can originate;
- Whether there are or can be external and/or potential sub-contractors;
- Confirmation as to the required income that is needed by the client to maintain his or her personal standard of living;
- The personal circumstances of a client including his or her marital status, number of dependants and indeed their own personal circumstances;
- Whether asset protection is a major concern or not;
- The long-term intentions and/or aims of a client including when he or she would like to retire and where;
- The dependency of the business on key personnel;
- What specialist services and/or infrastructures are needed to maintain the business and when was the last proper business plan prepared
Once these and other questions are answered an SCF accountant, lawyer or consultant will be in a position to discuss what can be achieved, the timeframes and costs involved with all proposals taking into account solutions from a holistic and overall perspective.