What is a tax expert? In Detail!

A tax expert is an expert in tax laws who guides his clients in matters of tax administration by informing them of their obligations and helping them to fulfill their responsibilities vis-à-vis levels of government.  

Tax advisers are professionals who are familiar with the tax legislation in force. They also have a vast knowledge of the business world, which allows them to apply this information for the benefit of their clients, but always follow the principle of prudence in order to avoid risks, and this within a legal framework. . Simply put, he is a specialist in tax law who will offer his clients legal strategies in order to reduce his tax burden.  

Who needs a tax expert?

A tax specialist becomes necessary in several situations and for different people.

Businesses

Businesses consulting a tax professional should view this service as an investment, not an expense. Indeed, the tax expert will allow you to optimize your corporate structure by applying legal and tax strategies that will allow you to save taxes.

The role of the tax specialist is also to prepare the ground for the long term in the event of a possible sale or to ensure the sustainability of your company. If you foresee changes in the shareholding of your company, it is essential to consult a Tax Agent in Melbourne in order to facilitate the transfer of the shares and to optimize the profit of each one.

Companies or individuals present internationally

With the increasing rise of globalization, a company can now export and establish itself in several different jurisdictions. Thus, it is important to work with a tax expert who will help you navigate the murky waters of international taxation. Doing business in several countries requires solid tax planning, which respects not only the laws of Quebec and Canada but also those of foreign jurisdictions. You are strongly advised to use the services of a tax expert if you face any of the following situations:

• Your business plans to expand internationally;
• You plan to make an investment in another country or you already own property abroad;
• You employ people who regularly have to travel to foreign jurisdictions;
• Your firm has warehouses abroad;
• Firm has operations that employ foreign workers;
• Business is multinational and operates related non-resident companies.

The entrepreneur

Entrepreneurs should consult with a tax expert to get the most out of strategies that will help them lower their taxes. In addition, his tax advisor will provide him with advice on all decisions that could affect the performance of his business.

After all, its role is to assess the various tax advantages and consequences associated with the company’s decisions, for the firm, its shareholders and its managers.

Working with a tax expert will allow the entrepreneur to maximize his investments and protect the interests of all his partners with the help of a thoughtful and well-structured shareholders’ agreement. 

Finally, the tax advisor will optimize the corporate structure of the company and protect the assets of his client against creditors. He is also an expert in trusts, so he can advise his client on the advantages of putting such a structure in place.

The particular

For individuals, the tax specialist will take care of their tax returns and clearly explain their obligations to them. He represents his clients if there are any differences of opinion regarding the application of tax laws to the authorities. In addition, if an individual wish to leave Canada to work or settle permanently abroad, or if he has just immigrated to the country, he will serve as an advisor to start this adventure on the right foot and be in compliance with the laws.

In the event of death

On the death of a taxpayer, tax laws intervene and normally result in taxes. A deceased person is deemed to have disposed of their capital assets at fair market value. The help of a tax expert will therefore be judicious to guide you during this ordeal. 

Thus, the accumulated capital gains will be taxable at this time. However, there is a tax rollover between spouses in order to delay taxation. The will must be up to date according to the last wishes of the deceased. A tax specialist will help the client to properly plan the tax on death. So there is pre-death planning where a tax specialist can intervene and after death for various tax choices that can be made to reduce the tax burden on the estate.

A tax expert to make your life easier

The tax specialist is a multidisciplinary expert with legal, tax and financial knowledge. It will serve as an advisor, improve your decision-making, prevent possible difficulties and ultimately, it will help you put in place strategies that will allow you to reduce your tax burden.