Tax optimisation in practice
Responsible tax optimisation means lawful planning of a company’s activities and transactions. It does not mean concealing income, using artificial transactions or evading tax.
Points to assess
- The company’s legal and operating structure
- Tax consequences of contracts and planned transactions
- Conditions attached to available reliefs and tax treatments
- The commercial rationale and supporting documentation
- Potential tax and reputational risks
A sound solution is not only efficient but also understandable, documented and defensible. It reflects genuine business activity rather than being created solely to reduce tax.
Tax rules change, so a solution used previously may not be suitable for a new transaction. Current requirements and the specific facts should be reviewed before any material decision.