Tax optimization

Entrepreneurs, managers and grassroots taxpayers view taxes as their business ‘losses’.

The Government, for its part, seeks to convince its citizens that taxes are the price paid for a civilized society enabling to combat the so-called market failures, finance capital investment in the areas unattractive for private businesses due to the long payback periods and also pay for creating public goods.

The specialized Government agencies and the punitive measures provided for in the legislation do not allow the average taxpayer to change, at his own discretion and with impunity, the amount of taxes to be paid. Therefore, the taxpayers have to resort to a special activity called tax optimization.

Tax optimization usually means the taxpayer’s efforts to reduce tax payments. Defining the optimal tax amounts is an issue facing every enterprise and physical person. All optimization methods add up to optimization schemes.

No single method used in isolation will result in successful tax planning. Only a well-designed scheme which takes into account all the specifics will enable to achieve the desired result. And conversely, a poor tax optimization scheme may make a significant adverse impact on the company. All schemes are verified before implementation for their compliance with certain criteria: reasonableness, efficiency, legal compliance, sustainability, reliability and safety.

Tax optimization involves tax payment reduction (short – and long-term) and prevention of punitive penalties by the fiscal authorities. This is be achieved through the right assessment of taxes and timely tax payments.