The Craft of Tax Strategy
We are tax lawyers and planners who believe that inefficiencies in the tax system can be opportunities for the savvy. The quest for tax efficiency and optimal structure is a vital part of business strategy today.
It is a dereliction of duty to your shareholders, your heirs and yourself if the optimum strategy is not in place to maximize the value of your income and assets. The search for fiscal efficiency is neither unfair nor contrary to the public interest.
Tax Planning is a tax favoured activity. That is why costs incurred planning your taxes are, for businesses, tax deductible. Any tax savings are, by definition, tax exempt.
The Income Tax Act is a social policy statute which taxes some forms of activities while exempting others. Creating business structures in compliance with those restrictions is a craft, if not an art.There is no stigma to minimizing taxes. It is synonymous with being a good citizen, and is why there is in fact a Canada Income Tax Act to be read, followed and complied with.
This site is dedicated to furthering the understanding of the nature of taxation and its remedies. We are available to assist so that your personal fact pattern can become crafted in the most efficient way possible. The tax department is a party to every financial decision, acknowledged or not. There is an asymmetry to their participation, however. Differing rates among different taxpayer types create opportunities for radical re-engineering to achieve enhanced returns and income. Financial strategic planning is essential to business building. The tax situation has to be crafted to ensure the long-term health and growth of the enterprise and its value to the owners.
Structuring solutions involve the examination of your affairs and business in the light of tax strategy. Tax strategy differs from tax minimization due to the non-tax cost considerations which inform tax strategy. The aim of tax strategy is to minimize both the non-tax cost and the tax paid. Examples of non-tax cost would be organization costs of changing the form of your business, public relation risk, reputational risk, brokerage, and legal costs. Other instances of non-tax cost may occur in the course of the formulation of tax strategy. Direct tax costs include both the actual tax paid and the time value of money when a tax is avoided or deferred.
Click here to read about Income Tax.