- Tax planning is organizing of financial affairs to allow one to obtain greater tax advantage.
- It is legitimate when you do it within the letter and the spirit of the law.
- Meet Tax obligation by arranging your financial affairs through Tax effective investment strategies or through tax plans.
- Deliberately Tax evasion or fraudulent activity to obtain an improper financial benefit constitutes tax crime.
- Tax crimes include: Identity crime, secret offshore dealings, credit and refund fraud, and illicit tobacco growing
Ways to minimize tax lawfully
Using your money to try to make more money or gain assets is called investing.Understanding how tax works in relation to your investment helps ensure you don’t pay more tax than you need to.
- Check if the arrangement has a product disclosure statement or prospectus?
- Check if investment has the certainty that comes with being covered by a product ruling?
- Check if ATO alerts exist on a similar arrangement?
- Check if the promoter has valid Australian financial services (AFS) licence issued by the Australian Securities & Investments Commission (ASIC)?
- You may want to seek independent advice.
Tax Avoidance Schemes
- Tax avoidance schemes aren’t limited to the ‘too good to be true’ types.
- It can be more sophisticated than many people realize.
- Watch out for complex structures and unusual financing arrangements, such as round robin financing, and non-recourse loans; ‘no-risk’ guarantees;
Careful with schemes
- Avoid getting into schemes that may not be legal
- Illegal schemes could result in you need to pay back any missing tax – with interest – and penalties.
- Promoters can be very convincing.
There are some ‘red flag’ marketing claims that will help you identify dodgy schemes.
Meet your Tax obligation by arranging your financial affairs through Tax effective investment strategies or through tax plans. Call us through 0417673055 for professional advice.