|
The global business environment with its opportunities of expansion ensures profit and revenue generation. To gain these benefits enterprises open new branches, manufacturing units, sales and marketing divisions and offices in various locations and regions across the world. Further, to gain a competitive advantage, most enterprises also have an increasing number of distantly located project teams who work in offshore locations or client sites. This brings in opportunities for the employees and enterprises to acquire assets and savings across boundaries. However, every employee, irrespective of the location and size of the organization or corporation has a portion of his salary or income deducted by the government in the form of taxes. Further, even in case of enterprises, irrespective of its size, need to pay corporate taxes which are based on the income, net worth and capital. However, there are a large number of instances when both individuals and enterprises tend to evade tax payment. Since tax evasion is a crime which gathers legal penalties it is better to deploy efficient tax planning methods. Tax planning can be defined as a process which enables individuals and enterprises to evaluate their income and profits generated and plan their financial profile so as to reduce the tax amounts. Efficiency lies in analysing the investment devices, expenditures undertaken throughout the financial year and other aspects which will showcase their tax liabilities. Besides, the government also offers tax incentives which can be availed by every individual. Nevertheless, there are still cases of tax evasion among individuals and enterprises. Deploying prudent tax planning initiatives will help both enterprises and individuals to reduce their tax liabilities. With globalization paving way for enterprises being operated in multiple locations and regions, it becomes mandatory for the employees and the enterprises to disclose their foreign bank accounts and be compliant with the tax regulations prevalent in the nation. However, to control the tax evasion by the foreign nationals, the income tax departments have developed amnesty and offshore voluntary disclosure programs. The IRS and the US governments have placed regulations that demands global enterprises operational there need to disclose all movable and immovable properties and other assets across various locations. This not only ensures that all entities will remain compliant to their tax regulations but will also ensure that there are no undisclosed foreign bank accounts. With efficient tax planning being vital for the financial success, tax consultants have a major role. Their ability to understand the client and the changing tax regulations prevalent across different nations will help them to advise their clients of FBAR and effective methods for tax reduction. The tax planning services of leading tax consultants help the clients to understand the legal aspects of taxation and facilitates them to manage their finances profitably across international boundaries. Read More About: individual tax return online, foreign bank account schedule, fbar form, tax planning benefits, 1031 exchange
Related Articles -
individual tax return online, foreign bank account schedule, fbar form, tax planning benefits, 1031 exchange,
|
