Tips on Avoiding The Traps of Taxation When Trying To Minimise Tax Paid

Tips on Avoiding The Traps of Taxation When Trying To Minimise Tax Paid

Each and every business, and career oriented individual is liable to pay tax. It might seem like you’re losing your hard earned money, but taxation is a primary source for the country to keep developing new infrastructure, healthcare and much more. There are very few ways to minimise the amount of tax paid. However, people seem to know and discuss certain tricks to minimise the tax they pay, to a certain extent. We sincerely hope that you do not engage in any misleading activities that have not come from a certified tax accountant.

So if you’re planning on saving some dollars on your tax, we hope you don’t fall a prey to your own traps. Think wise and keep an eye of caution because of the following:

  • 1. Plans and Strategies: While you might contemplate minimising the tax you pay, you should also consider what it means to evade tax or to avoid it, as opposed to tax planning. You are said to be evading tax when you do not declare your income or when you are caught making some deductions that you are not entitled to. However, if  you’re in the bound of law but are trying to manipulate the tax laws within, you are said to be avoiding tax, or called tax avoidance. Tax planning is something we can help you do very well. It is a process that will give you control over your tax dollars, and keep any uncertainty at bay.
  • 2. Keep Your Eyes on The Plan: Planning ahead will always pay off, especially in the case of taxation. Keep a track of all your deliverable and receivables, also keep a tab on your superannuation contributions as there are tax benefits from such items.
  • 3. Get Some Help: The once in a year event of taxation is best handled by some professionals. Especially for aspiring businesses and SME businesses, keep your books clear so that you can focus on innovation and greater profits.

If you’d like to know more about how to effectively manage taxation, don’t hesitate to give us a call.

03 7065 5555