Corporate and shareholder income taxation
For SMEs and, in particular, their shareholders, it is particularly important to know how to transfer corporate profit to the shareholder owners as advantageously as possible with regard to taxation. The taxation effects of salary and other employee benefits and dividend distributions vary significantly.
Regulations concerning business taxation are subject to change. An entrepreneur should seek the assistance of a legal specialist early on in order to predict the impact of any tax regulations on their operations. The effects of income taxation must also be considered with regard to change-of-generation and other ownership arrangements. The sale of a company and the sale of its business operations are very different with regard to taxation. The planning of an acquisition and merger definitely requires the help of a legal specialist. Taxation does not know a so-called ’repentance’, that is, the cancellation or modification of decisions with regard to their taxation consequences when the decisions have proved less than beneficial.
Tax appeals and responses to tax audits
An important part of the taxation process is the auditing of business activities. For the target company, these audits can generally be regarded as a favourable measure that supports the company’s financial management. However, these often give rise to disagreements concerning the interpretation of tax regulations. The procedure adopted by the tax authorities is not always correct or in compliance with the law. A tax audit report drawn up by a tax inspector almost always requires the back payment of taxes, and these are always implemented accordingly.
The tax appeal process is very expensive, ties up company resources and is time consuming. The company should certainly invest in proper financial management and good organization. Nevertheless, should a taxation related problem arise, it is essential to seek professional legal assistance. Here, LSL-Legal brings you the best and most efficient expertise.