By taxconnect on
Wednesday, May 25, 2011
Tax planning is considered to be a vital element of any business enterprise to ensure that no more tax is paid than is strictly necessary. This, of course, is on the basis that any tax strategy that is employed is consistent with the law and, where necessary, backed up by proper tax advice to ensure that if there is a challenge by the ATO, that a reasonably arguable position is in place to defend the position taken. Although the following tax planning strategies are primarily focussed on business taxpayers, it must be kept in mind that even individual taxpayers can benefit from tax planning strategies, for example, in considering timing opportunities for the disposal of CGT assets.
Importantly, year end tax planning will be effective only where the proposed course of action is in fact carried out as planned and backed up by proper commercial considerations. Also, even if a proposed course of conduct meets the specific tax laws, the general anti-avoidance provisions of Part IVA must be considered to ensure they do not impact on the effectiveness of the arrangements.
