You might be asking yourself: reducing a tax bill is an evasion or an avoidance?
Tax avoidance means you’ve worked with the tax code of your country in order to reduce the amount you’ll have to pay as a tax. When structuring your company correctly, tax avoidance becomes the legal road to keeping more income money in your pocket. It’s true avoidance might be a little complicated, but it’s still entirely possible, legal and much easier than running from tax services employees.
Tax evasion, on the other hand, is unlawful. It means evading legal tax responsibility as an entrepreneur.
The problem concerning tax avoidance is that most people don’t see it as something too wrong, making the thing socially acceptable. You see, some think that making a little extra cash helping people clean up their cars isn’t illegal and will bring you no trouble. But if some entrepreneur tries to avoid paying taxes, he’ll surely be criticised for his outrageous greediness.
Still, can you legally avoid this year’s tax bill?
For the most part, there’s probably not much you can do now.
Most of us put the tax bill in the back of our minds in order to concentrate on leading the business. It is important to keep in mind that there are ways to diminish the tax amount you’ll pay if you act before your business actually starts generating income.
If you decide to start your company offshore, this will surely help you avoid many of the tax issues that come with transferring assets out. You’ll be able to start clean.
Even when working offshore, you’ll have to take into account other actions that need to be done when it comes to taxation.
Ask yourself: have I been overpaying? If so, where?
Sometimes, you might be paying taxes just because you feel you are legally obliged to. After going through some legal consultancy, you may find out you weren’t supposed to do that. That’s exactly how people keep stupidly overpaying just because they don’t know the rules. Don’t be one of them!
Overpaying in taxes while trying to set up your company and even life offshore is a really popular issue. Offshore taxes are going to be incredibly complicated for most homeland tax preparers because they just aren’t used to working with them. They have a different mindset that makes this whole simple procedure become their personal struggle. The chances of overpaying are much bigger if you depend on a homeland accountant who doesn’t understand the offshore accounting procedures.
What about reducing your future taxes?
You should really just focus on the future of your offshore business. You probably can’t do anything now in order to reduce this year’s tax bill to zero. But, with some proper planning, you’ll be able to change the future situation of your company.
You can create a strategy that will help reduce your tax rate to an acceptable level.
Bizonaire is the legal consultant to help you build out the best residence plan. We can give you the opportunity to do business where your income stays in your pocket and doesn’t float out the door!
