When contemplating new family plans or business projects, a full understanding of their tax consequences in the short, medium and long term is vital to their control, planning and optimisation. Whether relocating, setting up a company or growing a business, the respective tax burden is an important aspect to take into consideration and to understand. By making use of the possibilities provided by legislation, good tax planning can help to substantially reduce this tax burden.
Both business entities and natural persons are subject to a high tax burden. As a result, they naturally seek to make use of those means provided by legislators to reduce their respective tax burdens. On the other hand, overly aggressive tax planning can have negative repercussions on a company’s image. Businesses must therefore take account of this new dimension in their plans.
International tax planning is growing ever more complex, particularly as a result of new rules on transparency (for example, on the automatic exchange of information) and transfer pricing. A full command of these rules is fast becoming a critical issue for businesses.
T&CO has amassed considerable expertise in the area of tax planning. Thanks to its international location, it is able to assist a number of clients in the context of international projects.
Tax planning generally involves the following steps :
- Developing an understanding of the client’s current situation
- Identifying the client’s short, medium and long-term objectives
- Establishing one or more potential scenarios
- Advice on selecting the structure to be put in place