Tax Consultants For Individual And Corporate Tax Payers

The role of accountants does not cease on the preparation of financial documents

. They also perform the task of making sure the company complies with all government taxation rules. Accountants are tax consultants. Tax-handling can be divided into two - the individual and the corporate. We are aware that the assets and liabilities of an individual is distinct and separate from the assets and liabilities of his corporate company. A corporation is a juridical entity so it is separated from the individual person.

What role does a tax consultant perform?

There are two types of tax responsibilities - that for an individual and the other is for corporate entity. Corporate taxation is more complicated. Accountants read and study the country's laws on taxes so as not to err in the payment of tax dues. Errors, which can be construed as deliberate, are penalized. It is in this context that the role of the accountant becomes essential,

It is sometimes imperative for a business to employ accountants who will also act as the company's tax consultant. These people are more adept in government tax rules and regulations. An accounting firm has experts in all aspects of taxation, from tax planning to income tax calculation.

As tax consultants, the accountants do the tax planning. The accountants keep themselves updated on the different government laws and regulations. They then apply the revisions, if there are, to their tax planning. These tax consultants will see to it that the clients are not penalized for non-compliance to government tax policies. The planning strategies to be incorporated will definitely optimize the business performance and profitability. Business management can no longer attend to the additional function of monitoring compliance to tax rules. Thus, retaining tax consultants in the form of accountants is major decision.

Services of many accounting firms are geared towards personal and corporate tax planning. The personal tax planning is for the tax payers who derive their income from salaries or professionals who collect certain professional fees. This can also pertain to self-employed individuals, investors or industry shareholder-manager. The accountants will endeavor to recover a big amount, the maximum possible, of tax credits and deductions for any individual client.

Accountants can be retained by corporations. They are the specialists who will advise management on the optimum tax benefits and payments. They can always inform the company bookkeepers of the various admissible costs, so that the bookkeepers can reflect this in the financial statements. The tax consultants cum accountants can determine for the company the optimum tax credits available. These tax consultants are also advisers of the company on tax incentives that can be availed. Any savings from all these government policies will revert to the company profits.

Quarterly and annual corporate income tax will be prepared by these tax consultants, again based on the financial statements. The accountants will certify to the veracity of the financial statements with the underlying statement that they have audited the company's financials and that the accounting method is in compliance with the prescribed accounting principles. These tax consultants will see to it that all rules are complied for prevention of severe penalties. Should there be any questions arising from the government tax authorities, these same tax consultants will handle negotiations.

Tax consultants are very vital people in the proper operation of a company. Sanctions to government taxation are handled by them in order to prevent tax cases which can be detrimental to business operations.

by: alona Rudnitsky

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