Tax Planning

Tax Planning
Logical analysis of a financial situation or plan from a tax perspective, to align financial goals with tax efficiency planning. The purpose of tax planning is to discover how to accomplish all of the other elements of a financial plan in the most tax-efficient manner possible. Tax planning thus allows the other elements of a financial plan to interact more effectively by minimizing tax liability.

Tax planning encompasses many different aspects, including the timing of both income and purchases and other expenditures, selection of investments and types of retirement plans, as well as filing status and common deductions. However, while tax planning is an important element in any financial plan, it is important to not let the "tax" tail wag the financial "dog." This can ultimately be counterproductive, as virtually all courses of financial action will have some tax consequences, and they should not be avoided solely on this basis.


Investment dictionary. . 2012.

Игры ⚽ Поможем написать курсовую

Look at other dictionaries:

  • tax planning — / tæks ˌplænɪŋ/ noun planning how to avoid paying too much tax, by investing in, e.g., tax exempt savings schemes or offshore trusts …   Dictionary of banking and finance

  • tax planning — The arrangement of a taxpayer s affairs, in accordance with the requirements of the tax legislation, in order to reduce the overall charge to tax. See: tax avoidance …   Accounting dictionary

  • tax planning — Devising strategies throughout the year in order to minimize tax liability, for example, by choosing a tax filing status that is most beneficial to the taxpayer. Bloomberg Financial Dictionary …   Financial and business terms

  • tax planning — reducing the amount of tax collecting through legal means …   English contemporary dictionary

  • tax planning — See tax avoidance …   Big dictionary of business and management

  • planning — plan‧ning [ˈplænɪŋ] noun [uncountable] when you think carefully about something you want to do in the future, and decide exactly how you will do it: • If you want to ensure a trouble free retirement, it s never too early to start financial… …   Financial and business terms

  • tax avoidance — legally reducing tax liability. Tax planning is the activity by which a taxpayer seeks to arrange his affairs so that his tax liability is minimised; avoidance of tax within the limits of tax law is perfectly legitimate; tax evasion is the… …   Law dictionary

  • tax avoidance — tax planning Minimizing tax liabilities legally and by means of full disclosure to the tax authorities. Compare tax evasion …   Big dictionary of business and management

  • Tax noncompliance — Taxation An aspect of fiscal policy …   Wikipedia

  • Tax haven — A tax haven is a place where certain taxes are levied at a low rate or not at all. Individuals and/or firms can find it attractive to move themselves to areas with lower tax rates. This creates a situation of tax competition among governments.… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”