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    STRATEGIC20TAX20PLANNING

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    Triscia Quiñones
    This document discusses strategic corporate tax planning principles and strategies. It outlines various types of tax planning including short and long-range planning as well as permissive and purposive planning. The document also discusses objectives of tax planning like minimizing litigation and taxes while promoting productivity and economic stability. Specific corporate tax planning strategies are presented, such as maximizing deductions, taking advantage of credits, and monitoring retained earnings. Tax avoidance techniques like splitting gifts or transferring property to corporations are also summarized.

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    STRATEGIC20TAX20PLANNING

    Uploaded by

    Triscia Quiñones
    14 views10 pages
    This document discusses strategic corporate tax planning principles and strategies. It outlines various types of tax planning including short and long-range planning as well as permissive and purposive planning. The document also discusses objectives of tax planning like minimizing litigation and taxes while promoting productivity and economic stability. Specific corporate tax planning strategies are presented, such as maximizing deductions, taking advantage of credits, and monitoring retained earnings. Tax avoidance techniques like splitting gifts or transferring property to corporations are also summarized.

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    Strategic tax powerpoint presentations

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    This document discusses strategic corporate tax planning principles and strategies. It outlines various types of tax planning including short and long-range planning as well as permissive and purposive planning. The document also discusses objectives of tax planning like minimizing litigation and taxes while promoting productivity and economic stability. Specific corporate tax planning strategies are presented, such as maximizing deductions, taking advantage of credits, and monitoring retained earnings. Tax avoidance techniques like splitting gifts or transferring property to corporations are also summarized.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    14 views10 pages

    STRATEGIC20TAX20PLANNING

    Uploaded by

    Triscia Quiñones
    This document discusses strategic corporate tax planning principles and strategies. It outlines various types of tax planning including short and long-range planning as well as permissive and purposive planning. The document also discusses objectives of tax planning like minimizing litigation and taxes while promoting productivity and economic stability. Specific corporate tax planning strategies are presented, such as maximizing deductions, taking advantage of credits, and monitoring retained earnings. Tax avoidance techniques like splitting gifts or transferring property to corporations are also summarized.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 10

    STRATEGIC CORPORATE TAX

    PLANNING
    BASIC TAX PLANNING PRINCIPLES

    TAX PLANNING

    - taxpayer’s capacity to arrange his financial activities in such a manner as to suffer a minimum
    expenditure for taxes.
    - involves weighing various tax options to determine the most beneficial way to conduct a business
    - tax planning aims not only to save on taxes but also to reduce or eliminate tax exposures during tax
    examinations.
    - Bureau of Internal Revenue (BIR) is very aggressive in its campaign to increase collections, and it is
    crucial to employ the right tax planning strategies.
    BASIC TAX PLANNING PRINCIPLES

    Objectives of Tax Planning

    - Minimal Litigation
    - Productivity
    - Reduction of Tax Liability
    - Healthy Growth of Economy
    - Economic Stability
    BASIC TAX PLANNING PRINCIPLES

    Types of Tax Planning:

    - Short-range and Long-range Tax Planning


    - Permissive Tax Planning
    - Purposive Tax Planning
    Corporate Tax Planning

    - A way of lowering the tax liabilities of a corporate taxpayer


    - most used methods is by including the deductions on business transport, health insurance of
    employees.
    - Rising profits of an enterprise means higher future tax liabilities
    - Tax planning means proper planning of: Expenses, Capital Budget, Sales and Marketing Costs
    Corporate Tax Planning

    Strategies that may be considered in corporate tax planning:

    - Maximize allowable deductions


    - Take advantage of available tax credits
    - Know your donees
    - Decide which method of deduction is more advantageous, Optional Standard deduction (OSD) or Itemized
    Deduction
    - Decide which option to take with regard to excess income tax payments
    - Avoid taxing the non-taxable income
    - Monitor unappropriated retained earnings in relation to your paid-up capitalization to avoid penalties
    - Avail of Tax Treaty relief for transactions involving residents of tax treaty countries
    Good Tax Planning Results from the Following

    - Claim tax benefits in eligible instruments


    - Giving correct information to relevant taxing authorities
    - Well-informed of applicable tax laws and court judgments
    - Tax planning done completely under the purview of law
    - Take into consideration business objectives and flexibility for the incorporation of future charges
    Tax Avoidance

    - an act of using legal methods to minimize tax liability.


    - the taxpayer uses legally permissible alternative method of assessing taxable property or income, in
    order to avoid or reduce tax liability.
    - use of tax-saving devices within the means sanctioned by law and where the taxpayer acts in good faith
    and at arm's length
    Tax Avoidance

    Examples:

    1. Donor’s Tax
    a. Splitting of gifts over numerous calendar years
    2. Simulation of Transactions
    a. Real property either sell to heirs, or wait for the death of the person owning the property.
    3. Transfer to a corporation of real property in exchange for shares of stocks
    Tax Avoidance

    Tax Avoidance for Corporations

    - Foreign Subsidiaries
    - Depreciation
    - Stock Options
    - Industry-Specific Options

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