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Unit 3: Corporate Tax Planning





             to know the ultimate tax payable by each employee for the year of assessment 2010.  Notes
             (Appendix A: Tax Rates for YA 2010)
                                   Appendix A: Tax Rates for YA 2010

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             Questions
             1.   Comment on the differences in benefits to the employees.

             2.   What are the learning points from the case study?

          Source: http://ejournal.unirazak.edu.my/articles/TAX_AVOIDANCE-Ravindran.pdf

          3.6 Summary

               Tax planning is not a device to reduce tax burden but is in fact helps savings by investments
               in government securities.
               Tax planning is an essential part of your fi nancial planning.

               There are also some areas of tax planning that are specific to certain business forms—i.e.,
               sole proprietorships, partnerships, C corporations, and S corporations.

               Tax planning also applies to various types of employee benefits that can provide a business
               with tax deductions, such as contributions to life insurance, health insurance, or retirement
               plans.

               Tax Planning India is an application to reduce tax liability through the finest use of all
               accessible allowances, exclusions, deductions, exemptions, etc, to trim down income and/
               or capital profi ts.
               Corporate Tax Planning is the strategies to reduce the taxes.

               Tax evasion is the general term for efforts by individuals, firms, trusts and other entities to
               evade taxes by illegal means.
               Tax avoidance is a strategy which involves exploiting legal means of reducing taxes with
               the goal of minimising tax liability.

               Double taxation is the levying of tax by two or more jurisdictions on the same declared
               income (in the case of income taxes), asset (in the case of capital taxes), or  fi nancial
               transaction (in the case of sales taxes).

               Tax management refers to the compliance with the statutory provisions and includes
               maintenance of records in prescribed format.

          3.7 Keywords

          Accounting Methods: Accounting methods refer to the basic rules and guidelines under which
          businesses keep their financial records and prepare their fi nancial reports.

          Corporate tax: It refers to a tax levied by various jurisdictions on the profits made by companies

          or associations.




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