69 A Girven Road Bayfair
Box 10329 Mount Maunganui 3152

Are you paying too Much Tax?

One of your largest business costs is tax, are you controlling, monitoring and determining your tax cost or is it the enviable consequence. As the business owner you are ultimately in control of business and need to mitigate your tax costs to be competitive with other operators in your industry.

If you are paying more tax than your competitors you are at a disadvantage and are unable to provide the same services efficiently. The first issue to address is your business structure, is it helping or hindering your tax situation. Some structures allow greater mitigation than others and you need to be aware of the issues.

When starting a business the basic sole trader is the low cost option, it provides simplistic. However with Sole Traders and also Partnerships there is little tax planning and ability of the stakeholder to control what is paid in taxes.

Another common business tax vehicle would be a closed company. Companies have the flexibility of partnership but enjoy many other methods of repatriation to stakeholders than sole trader entities'. With companies there is the option of stakeholders receiving Salaries, Interest, and Dividends. Each of these income streams have different tax issues to deal with.