Countries restructure and redesign their tax system to become a tax haven for two main reasons – jobs and money. Some Countries may offer a lower tax rate to large corporations, in exchange for the companies locating a division of their parent company in the host country and employing some of the local population. Apple,…
Read More »Taxation has been around since 6,000 BC (in Ancient Mesopotamia). Mesopotamia is the name of the Tigris-Euphrates river system (corresponding to most of Iraq, Kuwait, the eastern parts of Syria, and regions along the Turkish-Syrian and Iran-Iraq borders). Since then taxpayers have been reducing their tax liabilities by utilising the differing tax laws operating in…
Read More »A taxpayer who carries on a business is entitled to a deduction for a gift made to a former or current client if the gift has been made for the purpose of producing future assessable income i.e. gaining client referrals, generating additional sales, etc. Real estate agents for example normally give a bottle of champagne…
Read More »For businesses operating on an accruals basis, income that is subject to a client dispute may be deferred until the dispute is settled. The disputed income should be recorded in the financials as a liability, and only recorded as income when the dispute is finalized.
Read More »The tax strategies database is the intellectual knowledge and know-how that is the horsepower behind the whole tax planning process. A substandard or limited tax strategies database will not get the job done for the client and will inevitably produce poor performance. Too many accountants are attempting to provide tax planning services with an arsenal…
Read More »Just as financial planners need to know their clients when preparing a financial plan, so too do accountants need to know their clients when preparing a tax plan. This involves gathering the client information and data so the complete picture about the client’s affairs can be analysed. Accountants normally know their client’s income and expenses…
Read More »There is no generally accepted definition of what renders a country or jurisdiction a tax haven. The Cambridge Dictionary defines a tax haven as ‘a place where people pay less tax than they would pay if they lived in their own country’. The term most commonly refers to those countries or jurisdictions that have a…
Read More »Both common law partnerships and written partnership agreements allow the partners of a partnership to vary the amount a partner draws as a ‘partner salary’. To be effective for tax purposes in an income year, the agreement must be entered into before the end of that income year. The partner’s salary should be based on…
Read More »Even if accountants are well trained and utilising tax planning software it will still take 2-3 hours (on average) to complete the six stage tax planning process for a client. Skipping any of the six stages, or not spending adequate time on a stage, will result in a substandard result for the client. The tax…
Read More »Capital city: Nicosia Currency: Euro (EUR) Population: 1,100,000 Language: Greek & Turkish GDP …
Read More »"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
- Bono: U2