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Tax planning is the process of organising your, the taxpayers, affairs so that, as far as legally and commercially possible the liability to income and other taxes is minimised.

Giving consideration to tax planning is vital in any business and can take many forms. Some of the reasons why our clients seek our advice:

• Where a business or individual may be expecting to achieve a large taxable income for a given financial year, in which case we may be able to reduce your taxable income before the end of the year. You may be able to defer income, increase expenses, divert income and/or avoid unforeseen problems.



• Where your business structure, whether it be a partnership, soletrader, company, etc, is no longer suitable to meet your needs. By reviewing your structure we may be able to minimise your tax liability and protect and manage your assets more efficiently.
  
  
• If your family and/or marital circumstances have changed you should have your financial and business affairs reviewed to ensure you are making the best possible use of your assets, given the circumstances.
  
  
• If you are considering purchasing a new asset, be it business or personal, you should contact us first to ensure that the asset is purchased into the correct entity. You don't want to lose that precious asset that you work so hard to get and keep. You also don't want to pay unnecessary capital gains tax when the asset is sold.
  
  
• Where there has been an additional shareholder or partner admitted to the business or entity. The entity structure should be reviewed and formal agreements between the shareholders should be considered. Tax planning should be considered in this process.
  
  
• Succession planning. Who is going to take over your business when you retire? What effect will capital gains tax have on the sale of your business or transfer to another family member when retirement or an unexpected health problem occurs? You need answers to these and many more questions now, not when it is too late.

Reminder: document and write-off bad debts and pay your super liability prior to 30th June. If these issues are not satisfied prior to 30th June then you will not receive a tax deduction for the expenses in this financial year.

Planning is essential to the long term success of your business and wealth creation objectives. Tax planning is something that is not always a priority when we are trying to manage and run the day-to- day affairs of our businesses, or retirement is too far away to consider. The fact is, we all pay tax and we all retire. By managing your taxation and business affairs you may be able to make the retirement sooner and pay less taxes along the way. If any of the above issues effect you then call your HWC advisor immediately so we can address your concerns prior to 30th June.