Tax optimisation is the reduction and planning of tax payments through lawful actions by the taxpayer. It involves making full use of reliefs, exemptions and other methods permitted by law.
Several factors make tax optimisation possible. First, legislation allows business activity to be carried out through different legal forms, which may be subject to different tax treatment. Second, in some circumstances the taxpayer has the right to choose a taxation regime. There are also specific taxation methods applying to less common legal or business forms.
The range of tax-planning instruments is broad but not permanent. Legislation and regulations change, including through alignment with European Union requirements. Public authorities may also change their legal assessment of particular tax-planning tools.
For this reason, management cannot optimise the company’s taxes once and assume that the solution will remain appropriate forever. Changes must be monitored and the tax policy adjusted. Significant amendments may require the company’s entire financial and business structure to be reviewed.
Tax optimisation has nothing in common with tax evasion.
The essential difference is the absence of any breach of law in the taxpayer’s actions. Tax optimisation relies on choices expressly permitted by legislation and therefore does not involve unlawful conduct.
We provide the following tax-optimisation services:
- review of taxation arrangements;
- correction of systemic errors in tax accounting;
- lawful minimisation of taxes in accordance with European legislation;
- tax consultations; and
- assessment of risks associated with proposed optimisation arrangements.
If the tax burden on a company has become disproportionately high, it may be time to review its tax structure. MG Alliance specialists have extensive experience in taxation. Conducting a lawful business while paying a reasonable and properly calculated amount of tax is achievable. We use only lawful tax-planning methods.