WISDOM IN TAX MATTERS

All too often business owners consult with technically very competent tax accountants who have absolutely no WISDOM when it come to tax minimization.

By that I mean, adopting a technical solution to a tax problem whilst running headlong into a fight with the ATO.

Tax is just like any other cost of doing business, it must be minimized within the law. But beyond a certain line you will begin to cross into very dangerous territory and start a fight with a government agency that has deeper pockets than you have and it has much more time to scale the fight on its own terms. So if you want to wrestle a ‘gorilla’ go right ahead you could have what is known as a ‘pyrrhic victory’.

Try to adopt smart tax strategies that are robust and really well thought through and don’t simply jump at the first tactic mentioned by a young inexperienced graduate in tax that sound inviting but may have long term negative consequences.