5 Simple Ways to Manage Your Tax Downwards
Written on the 9 May 2012
Look at any company that is in financial trouble and you will probably see the Tax Office as one of the larger creditors. The reality is that we all pay a lot of tax - some of it income tax, some withholding tax, PAYG instalments and GST.
There are two fundamental principles to managing taxation:
1. Don’t pay any more than you have to; and
Famously, the late Kerry Packer told a Senate enquiry, “Of course I am minimising my tax. And if anybody in this country doesn’t minimise their tax, they want their heads read, because as a government, I can tell you you’re not spending it that well that we should be donating extra!”
The first principle is about maximising after tax profits; the second is about maximising your cash flow. Here are some ways to achieve these principles in practice:
These are all quite simple strategies but they have one thing in common. They will all put more money in your bank account.
If you need the right advice on what you can do to minimise your tax and maximise your cashflow, please call us on 02 4365 0377.