With a careful tax-planning strategy in place, you can grow the wealth you have accumulated while minimizing your tax burden.
DIFFERENCES BETWEEN TAX LAWYERS, ACCOUNTANTS, BOOKKEEPER AND TAX PREPARER
There are a lot of different types of tax professionals out there, what does an accountant do, tax preparer, bookkeeper, tax planner and lawyer do.
|Category||Tax Lawyer||Accountants||Bookkeeper||Tax Preparer|
|General Tax Planning||√||Tax Accountants Only||√||X|
|General Tax Planning Implementation||√||X||X||X|
|Tax Reorganizations-Planning||√||Tax Accountants Only||X||X|
|Tax Reorganizations- Implementation||√||No||X||X|
|Tax Reorganizations- Forms||X||√||X||X|
|Estate Tax Return Preparation||X||√||X||X|
|Tax Return Preparation||X||√||√||√|
|Financial Statement Preparation||X||√||X||X|
|Tax Appeals- Notices of Objection||√||√||X||X|
|Tax Appeals- Tax Court||√||X||X||X|
|Negotiations with CRA Collections Officers||√||√||X||X|
|Taxpayer Relief (Fairness) Applications||√||Tax Accountants Only||X||X|
|Voluntary Disclosure (Tax Amnesty Application)||√||Some Accountants Will Submit but no provilege if they do||X||X|
|Family Trust Deed Preparation||√||X||X|
|Trust T3 Tax Returns||X||√||√||√|
|Tax Research||√||Tax Accountants Only||X||X|
|Tax Opinion Letters||√||Tax Accountants Only||X||X|
|Tax Opinions for Offering Memorandum or Prospectus||√||√||X||X|
|Calculation of Potential Tax Liability||X||√||X||X|
Why is tax planning important?
Tax planning is a term increasingly used by those of us wanting to make the most of our finances, but sometimes its full meaning is not clear.
In a nutshell, tax planning is a strategy which focuses on managing your finances in order to minimize, delay or avoid taxes. This can be achieved by making the most of the various tax-law provisions, tax deductions and tax credits and other legal mechanisms available to keep your taxes as low as possible.
There is a close relationship between the concepts of financial planning and tax planning. The former relates to the strategy of managing your finances in order to achieve your short- and long-term financial goals. Tax planning is an important component of a wider financial plan and can be a key part of reducing your expenses to help you to achieve financial success.