The prime objectives of tax planning, no matter how effective accounting services for startups and business owners is, may be summarised as follows:
Reduction of tax liability.
Any taxpayer who has laboured with hard work win earning income has the greatest desire to keep the entire earnings for his own and his family’s benefit. But tax laws provide that a share of these earnings must be contributed to the state. To increase one’s share and reduce the share of the state is proper tax planning.
Minimisation of litigation.
Where genuine and legal tax planning is resorted to by the taxpayer and his advisors, and such planning is in conformity with the law, the chances of unscrupulous litigation are minimized. The tax payer is saved from legal harassment and hardships caused by litigation.
Tax planning is a measure of a taxpayer’s awareness of the provisions of taxing statues. Tax laws offer large avenues for the productive investment of earnings which can result in relief from taxation. When earnings are invested in avenues recognised by law, they can be converted into means for further earnings.
Healthy growth of economy.
Singapore grows when its people grow. The capacity to earn is the basis of economic growth and actual earnings are the measure of economy. The saving of earnings by properly and legally sanctioned methods, ie, tax avoidance through tax planning is a prime factor for the healthy growth of wealth of a nation and its people.
Under proper tax planning, taxes legally due are paid without any hassles. Productive investments increase and the national economy and the taxpayer prosper. Planning, therefore, indirectly creates economic stability and encourages an even distribution of resources.
For more information on tax services and fees, please visit Corporate Tax Singapore.