FinanceTaxes

Why do we need to optimize the taxation of the organization?

For most organizations, the main goal is to produce as many services or goods as possible, while using legal methods, but with minimal losses in paying taxes. For small and large organizations, an effective taxation system is as important as, for example, a marketing strategy, because with a well-developed taxation system, significant savings can be made to organizations that would otherwise go to payments to the budget. Also a good system of taxation allows to ensure the overall security of the enterprise and its employees.

Optimizing the taxation of an organization is a variety of methods and opportunities that will allow an enterprise to choose the right solutions for certain nuances of firms' activities. With the help of correct optimization, as well as forecasts of risks that the firm expects, full stability in the market is possible: with optimization, minimal costs are achieved for the two largest items of losses of entrepreneurs.

Ideally, optimization is desirable prior to the arrival of a tax audit, and if it is possible, even before the creation of the company itself, or at least the official registration of the enterprise, because the taxation system will be established immediately when creating entrepreneurship. Just at this point, optimization can bring maximum benefit: when there is not yet an established system that needs to be corrected. Because the tax legislation in the CIS countries is not only very difficult, but also unstable, the firm needs to take into account law enforcement, and possibly judicial practice.

Optimization of taxation basically consists of optimization at the initial level, from assessing possible risks, supporting complex transactions contracts by specialists, and preparing counterclaims by professionals after an enterprise has been inspected by the tax authorities. It is also important to carefully check the actions of tax authorities in order to identify non-compliance with the law, as well as the competent conduct of court cases, if the situation has developed quite unfavorably.

However, most companies begin to optimize already at the stage of a stable firm. In this case, the optimization will consist of checking the accounting of taxes, checking contracts and documents, possible division into several structural divisions. It is also necessary to reorganize the entire contractual base and create an autonomous system for internal control of the level of taxes.

Many entrepreneurs do not even know that their existing system is not perfect and is not built up in an optimal way, as a result of which they incur significant financial losses, and also suffer negative consequences in their future activities.

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