Pages

Wednesday, 15 March 2017

Information Regarding International Corporate Tax Planning

By Ruth Collins


International taxation is the process in which to determine how and where an entity will be taxed. They could either be taxed on one or both countries depending on what is stated on the law by these different countries. Treaties between these countries usually determine which one will be followed.

There are companies which want to prevent paying taxes on two countries instead of just one. Failing to prevent this might result in them paying more than what is necessary. International corporate tax planning Canada is a good example in determining which country their tax must go to. Understanding this fully will make you take advantage of it.

Canada employs a combination of management and control standard and incorporation standard. This mean that if the establishment located in the country is also incorporated there, then they are considered tax resident. But if is not formed there though the management and control of it is there, then they are still fully taxable.

If you want the company you have to be nontaxable legally in Canada then the incorporation must have happened in another country. Management and control must also be done in another country as well. These include the highest decisions made and their bank accounts must not be inside the country.

To understand these things better and let them help you in regard with the legalities, hiring the service of lawyers in a firm with specialization on these is a needed. They can give you guidance in preparing required documents used for the determination of the taxability of your establishment. The following are information in finding one.

Ask your colleagues and business partners for recommendations. You could even ask the current legal counsel of your business if they have any recommendations as well. These could save you some time in checking the background of the lawyer by having a trusted person recommend them.

Ask about the experiences they had regarding similar issues to yours. They could give you examples of companies they are working with currently. Having a good amount of clients is a good sign specially if some of them are the prominent companies. If you happen to know a client of theirs personally then you could try approaching him and asking him on his opinion on the service that the law firm has given to him.

Inquire about their legal fees and if they are also specializing in other parts of corporate law. It is always better to have only one team in managing your corporate legal needs so to prevent misunderstandings between them which might cause problems against the government. Working with the accounting and finance heads of your company is part of what they do to determine properly what is taxable and what is not.

This is just a short description and few advises on what you could do to maximize the earnings of your company by legally minimizing the taxes you should pay. There are many professional lawyers that are willing to offer their services to you when needed. Ask them more information about the things that still confuses you. Different countries have different treaties with Canada so it is best that you would be able to find someone who is also an expert of the laws and treaties of that other country as well.




About the Author:



No comments:

Post a Comment