Tax advisory is the planning and implementation of tax strategies to minimize a company's tax liability. This can include advising on tax-efficient ways to structure business transactions, as well as assisting with tax audits and litigation. Tax advisors can be either internal or external to a company. Internal tax advisors are typically employees of the company, while external tax advisors are usually accountants or lawyers who are hired on a consulting basis.
Tax advisory services can be useful for companies of all sizes, but are particularly important for small businesses and startups. This is because these businesses often don't have the internal resources to handle complex tax issues, and may not be aware of all the tax implications of their business activities. Tax advisors can help them navigate the tax code and ensure that they are taking advantage of all the deductions and credits available to them.
If you are thinking of starting a business, or if your business is already up and running, it is important to consult with a tax advisor to ensure that you are doing everything possible to minimize your tax liability. A good tax advisor can save you money and help you avoid potential problems down the road.
Why you should appoint a tax advisor early on?
There are a number of reasons why you should appoint a tax advisor early on in the life of your business. First, a tax advisor can help you choose the right business structure for your company. This is important because the type of entity you choose will have implications for your taxes. For example, if you choose to form an Sole Proprietorship or Partnership, you will be taxed as a partnership, which has different tax rules than a corporation.
Second, a tax advisor can help you take advantage of all the deductions and credits available to your business. This can save you money and help reduce your tax liability.
Third, a tax advisor can assist you with tax audits and litigation. If IRAS audits your company, a tax advisor can represent you and help you resolve the matter. If you are involved in a tax dispute, a tax advisor can also provide valuable assistance.
Finally, a tax advisor can help you plan for the future. A good tax advisor will be up to date on the latest tax laws and changes, and can help you plan your business activities in a way that minimizes your taxes.
Appointing a tax advisor is an important step in ensuring that your business is doing everything possible to minimize its tax liability. A good tax advisor can save you money and help you avoid potential problems down the road.
Koh Management provides business tax advisory services as well as personal tax advisory services.
If you are running a profitable business and need tax consultancy, or as a self employed and requiring some form of structuring, speak to us!