Wednesday, April 26, 2017

The Need For Canadian Tax Advice

By Kathleen Miller


Canada like many other western countries has a complex taxation system. It is easy to be confused by the underlying aspects. That is why sometimes there is usually need for Canadian tax advice. This will greatly enlighten a person. It will make one more knowledgeable. Having the right taxation knowledge, is having real power in the hands. To survive in the modern world, one needs information. It is the knowledge age. There was the agrarian age that was characterized by agriculture. Nowadays, it is more than just agriculture. People need information so that to have easy lives.

Taxation advice will help one to avoid or minimize taxes. Tax avoidance is totally allowed by the laws of Canada. In fact, Canadians are encouraged to avoid taxes. There are legal strategies that a person can use to reduce his taxation burden. An individual should take advantage of reliefs. There is also tax breaks normally offered to business enterprises.

Taxation enlightenment is particularly necessary to a startup. Starting a business is not the easiest thing to do. It involves a lot of challenges along the way. Actually, most startups usually end up in business failure because of the startup owners failing to be advised on tax matters and other issues that are pertinent to the bottom-line of an enterprise.

Big businesses are constantly looking for advice on the various taxation issues. This is because they make a lot of money and a significant chunk of it ends up being paid as taxes. The tax paid by a top Canadian multinational can run into millions of dollars. The taxation system of Canada, USA and some European countries is punitive.

It is important that management is advised whether setting up offshore is the best taxation optimization strategy. Many businesses in North America have entirely shifted their business to other countries. Some have shifted only parts of the business such as production or marketing. Incorporating in another jurisdiction is not something that should be taken lightly. The right information is needed.

Setting up offshore should be done after careful deliberations. There is need to analyze matters from different angles. If the pros outweigh the cons, a positive decision should be made. There are many benefits of setting up offshore. Of course, the obvious benefit is that a company will pay fewer taxes at the end of the day. Privacy is another befit.

There is need for business management to be advised by taxation professionals about the best offshore destination and the type of business structure to use. The Cayman Islands are a popular destination. Alternatively, a business can set up in Hong Kong or Singapore. Most companies usually go with the trust option. One can also decide to open an offshore company.

Taxation advice is needed by Canadians from different walks of life. A professional will enlighten a person about how to pay less tax in the most legal manner possible. Paying less tax means having more money in the pocket for carrying out other activities. Businesses and non-profit organizations also need taxation enlightenment. There is need to find a knowledgeable, experienced and highly competent taxation expert.




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