Tax planning is a certain set of actions of the taxpayer aimed at reducing the amount of tax payment on legal grounds. This applies to various types of payments that will be sent to the state Treasury.
Types of tax planning
Taking into account a certain subject, there are two types of planning:
- Individual-means reducing mandatory payments for an individual who wants to save their money.
- Corporate financing is an integral part of the total financing of a particular enterprise. The purpose of this planning is to optimize costs, which will have a positive impact on the company’s profit. All the funds that were saved on paying taxes will be redirected to modernizing and improving the efficiency of the company’s working activities, which can compete with other organizations.
Taking into account a certain level, there are two main types:
- Local planning-takes place within a specific country (one legal field), which excludes the active participation of international planning tools.
- International planning-reducing tax payments by actively supporting foreign companies, foundations, and other organizations. In this case, there are tax benefits that are accrued according to foreign legislation and / or agreements on the avoidance of double taxation. Popular transfer pricing methods can also be used.
Main stages of tax planning
- Tax analysis of the current situation is carried out. Taking into account Ukrainian laws, the current status of a taxpayer is determined, and a list of mandatory payments is compiled.
- The selected task and identifying opportunities. A detailed analysis of two legislations – local and foreign-is carried out, and international agreements are considered, as a result of which the possibility of using special tax regimes or zones with preferential rates for taxation is determined.
- All sorts of risks are calculated. It is important to first understand the possible losses that may occur when choosing such tax planning schemes. This list includes financial losses as a result of attracting attention from public services, as well as image losses.
- Planning an individual work flowchart. After a detailed analysis of all the legislation has been carried out and all the risks have been taken into account, it is necessary to build a special scheme that perfectly fits the current situation.
- The embodiment of all ideas. All actions that will help to launch previously planned schemes are performed. The list of such actions includes: property restructuring; establishment of organizations and funds, as well as their further implementation in a well-thought-out business scheme; conclusion of new contracts, etc.
International tax planning tools
As popular tools, it is customary to use:
- private foundation;
- various trusts;
- offshore company;
- as an agency scheme;
- back-to-back credits.
In addition, Kasyanenko & Partners Law Company specialists assist in the process of opening new Bank accounts, support businesses that have lost their legal capacity.
Our specialists offer professional assistance for high-quality business optimization in Ukraine and abroad. Experts allow, using legal methods, to minimize the company’s monetary expenses, as well as to exclude the possibility of receiving fines from regulatory authorities.
What do we offer?
- Providing detailed advice for individuals and legal entities that relate to tax planning on legal grounds.
- Development of competent strategies, restructuring, joint ventures, and jurisdiction with the most appropriate tax regime.
- Representation of the client’s interests in the process of resolving important issues with the tax service on the territory of Ukraine.
- Professional support during the creation of joint organizations and strategic alliances; detailed advice on the transfer of assets and shares; planning and structuring of joint ventures with the help of lawyers.
- Representation of the client’s interests in the process of liquidation of legal entities.
- Comprehensive support during business restructuring, as well as consideration of all possible risks that may negatively affect the interruption of business processes.
- Consultations for business managers aimed at preventing bankruptcy.
- Support for bankruptcy and reorganization of enterprises that are undergoing bankruptcy procedure.
- Assistance and advice in the legal regulation of bankruptcy proceedings.
- Conducting legal expertise that will help confirm compliance with the requirements in the field of foreign investment, as well as when registering foreign investments in Ukraine.
- Advice on issues related to corporate securities.
- Representation of the client’s interests aimed at resolving issues with regulatory authorities and services.