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  • 20 Oct 2021

STRATEGIC TAX PLANNING

<p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">Strategic tax planning requires you to think ahead before making the investment, and consider the impact of tax on your investments and income now and in the future.</p> <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">Every dollar of tax paid is a dollar that could have been saved for your retirement. Strategic tax planning ensures your taxes are prudent and legitimately minimized.</p> <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">Tax planning strategies fall into one or more of the followings:</p> <ul style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px 11px; padding: 0px 0px 0px 10px; list-style-position: inside; list-style-image: initial; color: #25458d; background-color: #ffffff;"> <li style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">Income reduction strategies: this involves maximization of tax deductions, splitting taxable income or salary sacrificing to super.</li> <li style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">Income swapping Strategies: involving the swap of taxable for tax-free income.</li> <li style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">Maximizing offsets: involves obtaining tax offsets (credits) like imputation credits or new entrepreneurial tax offsets.</li> <li style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">Arbitrage of tax entities: this involves moving income away from a high tax paying entity to a low tax paying entity.</li> <li style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">Deferral of tax strategies: involving the deferral of tax or taking advantage of a more favorable tax rate.</li> <li style="border: 0px; font: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">Timing strategies: involves the sale of assets in years income is low</li> </ul> <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">Strategic tax planning cannot be achieved by a last minute end-of-financial year dash to your accountant or following a whim with heavily promoted tax-driven investment schemes. Rather it is about foresight in planning your taxes, and being aware of opportunities that can allow you to reduce the impact of tax and create wealth on an ongoing basis.</p> <p style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; font-size: 17.3333px; line-height: inherit; font-family: 'Open Sans', Arial, sans-serif; vertical-align: baseline; margin: 0px 0px 20px; padding: 0px; color: #25458d; background-color: #ffffff;">When designing these strategies, one has to be aware of various integrity and anti-avoidance measures build into the income tax laws that are designed to stop manipulation of the tax system. Before you implement a tax plan, we suggest you speak to a specialist tax adviser.</p>