Importance Of Tax Consultancy

tax consultants are highly trained and specialised individuals who advice individuals and business on tax matters. They have an in depth understanding of the taxation laws and practices and therefore will help business in tax and cash flow planning to minimise the amount of tax payable legally. As much as it is important for businesses to pay tax, these businesses could also benefit on savings that accrue as a result of lower taxes.


Importance of tax consultancy

Interpretation of complex laws

The laws that govern taxation are not only diverse but they may also be complex for those who do not have a background in law and accounting. This means that businesses require assistance in interpreting the laws, identifying the tax laws that apply to their operations and understanding the penalties that may result if they do not comply. This assistance can be provided by qualified and experienced tax consultants.


Computation of taxes

There are different types of taxes that apply to business depending on the level of operations, the industry and nature of operations, the size of the organisation and its revenue. In order to accurately determine the tax payable, there are different rules that apply to these businesses. Without an in depth understanding of these rules, businesses may either pay excessive tax or underpay. This may land the business either in financial or legal trouble. With the help of a tax accountant, the tax computations will be accurate.


Resolving tax disputes

Sometimes, tax disputes may arise may be due to disparities in taxable income, failure to stick to the stated timeline, failure to disclose some business incomes, failure to adhere to international tax guidelines especially for companies that have branches in different states and many more. To resolve these problems accurately, the business could work closely with tax consultants who have experience dealing with such disputes. These consultants understand the procedures that ought to be followed, the documents that need to be filed or presented and many more. They are therefore best placed to deal with the dispute.


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Others

Private wealth management, refinancing and restructuring loans, taxation and rates as a result of property transfer, purchase of commercial equipment and the resulting tax implications, Tax audits, mergers and acquisitions and transfer pricing are some of the other areas that a tax consultant may come in handy. They may also assist in cases where organisations are being wound up and there are some outstanding tax liabilities or when tax is expected to accrue from such transactions. Remember, you had rather deal with such issues in good time to avoid excessive penalties.


In many cases, individuals as well as businesses put off tax matters which not only complicates the situation but it also denies the business an opportunity to confront these issues on time. However, with tax consultancy services from experienced and skilled organisations, tax matters can be dealt with efficiently and in good time thus avoiding penalties, legal problems, denial of compliance certificates and limitation of the opportunities available to the individual or business.