Get less tax - there are numerous ways to pay less tax

Now of course I am minimising my tax. And if anyone 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 so well that we should be donating extra - Kerry Packer.

There are numerous ways to pay less tax. As the quote above indicates, even people as wealthy as the late Kerry Packer are keen to find ways to minimise tax.

We all want to use public roads and services but we just don’t like to think we are paying more than our fair share. The realisation that someone they know is getting a better tax deal drives others to look around.

In the tax advisory space, the powers of the brains you employ drive the tax you pay. There are plenty of completely legal ways to minimise the tax payable by most clients. It takes real time and effort to get it right, but often clients either don’t want to spend the money on what can be very substantial savings on an annual basis or their existing advisor does not have the expertise to deliver the advantages available to the client under the Tax Act. 

What you want is an advisor who has the expertise (qualifications in taxation), interest and experience to deliver hard dollars in savings. What you will need to do is invest the time and money in decent advice that can make a huge financial difference over time.

Questions

Ask yourself:

  • Do I take unnecessary compliance risks by not obeying the taxation laws? Undeclared earnings, for example?
  • How much risk are you willing to take with your tax affairs?
  • How do you feel about the competence of your current tax advisor?

Ask accountant:

  • What qualifications and experience do you have in taxation?
  • Are there any specific income tax, capital gains or concessional taxation treatments applicable to my situation?
  • Would you please provide your advice in writing?
  • Can you give me examples of situations like mine that you have handled in the past and the outcomes you have achieved?
  • Please explain to me what is meant by income splitting and lowering the average rate of tax? Are any of these concepts applicable to my own situation?

This article was taken from the book 'Your Money, Your Choice', written by Brett Kelly. For more information on Brett, please visit his website: www.brettkelly.com.au