There comes a time for all tax payers when, regardless of their activities, they end up in a situation where they have to consider how their activities should be structured in order to avoid excessive taxation.
Thus, when launching a business activity, thought should be given to whether one wishes to achieve one's goals either as a sole proprietor, together with others through a partnership or through a corporation. The tax treatment is different in each case and can have considerable influence on the company's economic success.
Day-to-day activities must also be structured in a way that ensures the avoidance of unnecessary tax payments. Unexpected back taxes should also be avoided.
Any restructuring of companies such as mergers, demergers or contributions of businesses play a significant role for many of our clients – regardless of their size and corporate form. For example, a new shareholder's accession to a group practice of physicians is also considered a restructuring, which is governed by specific rules, the compliance with which will result in considerable tax benefits.
When planning a corporate succession, it is important to consider how this can be carried out in a tax-advantaged way. Taxes, which can be considerable in such a case, can endanger the continued existence of the enterprise, thus jeopardising the work of a lifetime.
The activities of private individuals must also be carefully considered on a case-by-case basis. Here too, tax traps lurk, which can be avoided by a consistent and legally compliant design. For example, the purchase of a solar power system can be designed to generate considerable economic advantages through tax deferral and tax offsetting. But, where applicable, investments in rental properties can also be designed to achieve tax benefits.
Everyday transactions such as the purchase of property can result in considerable tax burdens, which can be potentially avoided with clever design.
In the private domain, appropriate structuring can help save gift and inheritance tax in accordance with the law, which would otherwise have to be unnecessarily paid to the government.
Accordingly, the consistent and legally compliant structuring of taxes is expedient in every area of life and should not be neglected.
Take advantage of our future-oriented expertise:
- Tax design for new corporate structures
- Advice on sales, closures, and investments at home and abroad
- Structuring of asset succession
- Planning of gift and inheritance tax regulations