Every business decision — choosing a legal form, paying employees, buying or leasing assets — has tax consequences. Tax planning means structuring those decisions early so the tax burden is efficient and compliant.
Where the lines are
- Tax planning: using options and incentives that the law actually provides.
- Aggressive avoidance: arrangements that look formally valid but lack business substance. Tax authorities increasingly test substance.
- Tax evasion: hiding income or falsifying documents — a criminal offence.
Examples of legitimate strategies
- Choosing the business form and tax regime that fits your scale, such as the SME final tax or the general rate with reductions available to qualifying companies.
- Designing remuneration packages with the treatment of benefits in kind and allowances in mind.
- Timing expenses and investments, including depreciation by asset group.
- Using incentives such as tax holidays, tax allowances, super deductions or specific VAT facilities when eligible.
- Documenting related-party transactions at arm's length to avoid adjustments.
Keys to success
- Plan before the transaction, not after the books are closed.
- Back every step with business substance and proper documents.
- Review the plan whenever regulations change.
Hanna Consulting's Tax Planning service helps you build tax strategies that are efficient, documented and defensible.
