Tax Consulting

What is tax planning?

Tax planning is also called tax avoidance. The purpose of tax planning is to bring about a reduction of taxes to the company or to the individual, directly using the law or lacunas in it. Tax planning is in essence a process whereby existing options are inspected in applicable ways to achieve the best tax avoidance result. In order to plan taxes the planner must be well versed in the law and in any loopholes or lacunas in it. They must also be sophisticated enough to create the right tax plan which will yield good tax reduction results. Israeli legal and judicial systems keep a firm hand where tax evasion is concerned, and tax planning might be perceived as tax evasion, so, through several different rulings, the legal system has put things in order.

Tax planning and tax avoidance must are not the same. The distinction is achieved by means and tools used by creditors. Tax planning will be done in accordance with the law, while any lacunas are made use of with great sophistication, while in tax evasion the person evading taxes breaks the law. Both the planners and the evader have a common goal – to reduce tax liability.

What is international tax planning?

Just like regular tax planning, International tax planning requires profound and sophisticated understanding of the law, the regulations and the protocols in different countries around the world. Tax laws in the various countries are different and changing. Throughout history, tax authorities have operated on a national level in accordance with the needs of their respective countries, and so, in international tax planning, it is vital that the planner is well versed in the laws, regulations and even rulings in that country, as well as the bureaucracy in each of the countries so they can create a tax plan with minimal and satisfying results.

Reducing tax burden

Where company or individual tax rates are high in the country of residency, an international tax planning is advisable so the burden of taxes on the company or on the individual is reduced. Such planning can be done through a tax shelter, which will give tax differences in countries where tax rates are lower. As a result, tax rate will decrease and profit will increase. The Gadi Solomovich CPA firm provides tax planning services to thousands of businesses and individuals in Israel and abroad. Aggressive tax planning, international tax planning and so forth.

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