Virtually all types of businesses need the skills of an accountant, from the smallest to the largest. One of these skills has to do with the elaboration of tax planning.There are several reasons for carrying out this activity. One of the main ones is the fact that it can generate high gains for the business, reduce costs and still achieve better results.
Despite these positive points, this practice began to be adopted, relatively recently, due to the complexity of Brazilian taxation and the need for increasing professionalization of organizations.
Even so, there are still doubts regarding this management and it is often not known exactly how important it is.
In this post, you will see what it is, what the importance is and how to apply this practice, in addition to understanding its benefits and its usefulness. Come on? You can calculate sales tax and come up with the best accurate submission now.
What is tax planning?
Whenever a new financial year is beginning, the company must plan all of its activities, including those related to the payment of taxes and other taxes. Tax management, therefore, can be conceptualized as a method that aims to find accounting and tax means to reduce the amount paid as taxes on each operation or product.
This term is also known as tax avoidance and should not be confused with tax evasion. While the second means tax evasion and procedures that go against the law, the first has the purpose of finding legal ways to obtain a lower tax cost. Of course, this planning depends on reliable and regular data . Otherwise, it will be subject to errors and present incorrect estimates and analyzes, which can cause losses to the business.
It is important to remember that tax avoidance is one of the responsibilities of Accounting, a science that aims to control assets, analyze taxes and other activities necessary for the total management of the business. For making an effective and permanent record of the company’s operations, Accounting is a pillar of tax management, since it provides the updated and necessary data for the planning to be carried out.
In this way, we can consider tax planning as a tool that projects the economic activities of the organization and finds valid means and in accordance with the legislation to reduce the sum of taxes and taxes paid. Other possibilities are to avoid the incidence and postpone the payment of taxes, whenever this is in accordance with the law.
Types of tax avoidance
Regarding the types of tax avoidance, the two that exist are:
- As a result of the law
Resulting from loopholes and gaps in the law
In the first case, the legislation itself induces the reduction of taxes, as is the case with tax incentives. In the second case, the company uses elements that are not prohibited by law or those that avoid the taxable event. It is worth noting that the selection of the most viable alternative must be verified before the occurrence of the taxable event. Furthermore, what is valid for one company may not be for another. So, you need to evaluate each case separately.
