As the end of the year draws near, many companies are busy putting the closing touches on any last-minute transactions, acquisitions, payout or benefits for the corporate taxable year. Pretty soon, it will be time to file taxes for 2019, and many business owners want to make sure they have capitalized on any potential tax savings before December 31.
At outlined in a recent article from The Globe and Mail, there are certain ways that a corporation can reduce what the article refers to as “overtaxitis“. The article explains that this is idea that a company faces a more severe financial tax burden due to not taking advantage of available tax breaks.
However, there is always the question of legality when it comes to taxes. What is tax fraud versus what is a tax shelter? In a very general sense, tax fraud is false information provided on your corporate taxes. Tax shelters, generally speaking, are ways that business owners can reduce their financial tax burdens though certain tax benefits.
The difference is in knowing what types of tax savings fall into which category. What does deferring income mean for your company? Does your specific financial situation allow to you qualify for this type of manoeuvre? The same questions can be, and should be, asked for what company assets qualify as a taxable benefit, or for any of the options listed in the article.
Tax laws are generally confusing, even to seasoned corporate professionals and government officials. Because of this complexity, it’s crucial to seek the assistance of an experienced corporate lawyer. He or she will be able to leverage his or her experience to help business owners identify the best legal solutions to avoid unnecessary tax burdens.