Firms 'must engage in proper tax planning' - By: Arthor Greenwald

In order to achieve maximum success, business must engage in proper tax planning, it has been suggested.

According to Richard Odongo, the chief executive officer Core Associates International, which specialises in business development, investment and research consultancy, this helps them to increase their levels of compliance, reduce tax outflow and improve their profits, the Daily Monitor reports.

The expert pointed out that such activity is the practice of making alterations so as to legally reduce tax liabilities to the minimum possible.

This, he added, may enhance their chances of surviving during these tough economic conditions.

One form of such strategising may see businesspeople engage in offshore company formation to reduce the levies they are subject to.

Speaking at a three-day financial literacy seminar at Lugogo recently, Mr Odongo noted that failing to make time for proper tax planning can have legal repercussions as well as financial ones.

In order to be successful when it comes to this type of activity, it helps if firms keep excellent financial records, he suggested.

This should include all transactions, invoices and receipts arising from business operations, he claimed and he went on to advise managers to retain tax documents for at least seven years.

Mr Odongo added: "Not planning your taxes is like driving down the hill at night without lights and brakes. Tax officials will come in with invoices they assume you are supposed to pay and because you have no records to defend yourself, you will have to pay whatever amount they tell you."

To get advice on taxes and offshore company formation business can contact professionals who specialise in such matters.

By doing so, they may maximise the efficiency of their finances and help to achieve a competitive advantage over their rivals, which is particularly crucial given the tough nature of the business world at present.

About the Author

The Article is written by scfgroup.com/ providing tax planning and offshore banking Services. Visit http://www.scfgroup.com/ for more information on scfgroup.com/Products & Services___________________________Copyright information This article is free for reproduction but must be reproduced in its entirety, including live links & this copyright statement must be included. Visit scfgroup.com/ for more services!

Article Directory Source: http://www.articlerich.com/profile/Arthor-Greenwald/63939

Additional Articles From - Home | Finance | Banking