A brief guide to tax management processes

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Larson Wealth Management LLC
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A Brief Guide To Tax Management Processes
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• A Brief Guide to Tax Management Processes In
  todays business world, managing the processes
  that deal with tax management can be complicated,
  primarily if your company works in more than one
  state or has more than one location. Your
  business may also be dealing with Tax in other
  ways, such as making sure that youre filing in
  all of the suitable locations and keeping up with
  changing tax laws. The most important thing to
  remember about the tax management process is that
  no matter how you need to handle it for your
  business, several steps need to happen each
  timethese are generally known as the process of
  tax management.
• What Is The Purpose Of Tax Management?
• The purpose of the tax management process is to
  keep a company out of legal trouble with tax
  authorities. Tax management also includes keeping
  an eye on accounting information that can show a
  positive picture for tax reporting and keeping
  employees up-to-date on upcoming changes in tax
  law. The primary source of information for
  managing Tax figures is usually the groups
  accounting system and the financial reporting
  process, including Tax. But, as we have seen from
  Figure 9, there are alternative means available
  for communicating financial information from
  subsidiary undertakings to head office to ensure
  timely data exchange.

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• Other resources involved include input from
  senior people who work in Tax or Finance or even
  finance managers. In practice, it is customary to
  designate a specific individual responsible for
  carrying out all these activities plus others,
  such as providing advice on tax implications when
  significant issues arise. Importantly they will
  need experience in watching tax developments at
  both national and EU levels together with
  knowledge of their Tax position together with
  what needs to be done if anything about it.
  It may also be necessary, depending upon
  organizational structure, for one person to act
  as the liaison between tax managers and
  departmental heads so that everyone concerned
  knows precisely where they stand regarding any
  matter which could affect or involve Tax.
• Types Of Taxes
• Each type of Tax has its tax management process.
  It would be best to abode by each countrys tax
  laws, so make sure you understand what you are
  responsible for and how it should be paid.
  Usually, if you fail to pay your taxes on time or
  incorrectly, there are penalties. Furthermore,
  even if your income is taxed at a specific rate
  in your country, it may still be subject to
  additional taxes when transferred into another
  country.
• For example, if you have funds sitting in foreign
  bank accounts that are not being used for
  investments or living expenses, extra taxes may
  be imposed on those funds called Withholding
  Taxes. These withholding taxes are designed to
  prevent individuals from taking their money out
  of their home countries without paying
  appropriate income taxes first. If you do not pay
  these taxes before transferring your money
  overseas, you will be liable for them once they
  are found.

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• More severe consequences could arise if they
  accumulate over time due to an incorrect filing
  of paperwork, such as fines or prison sentences.
  When working with an accountant, tax lawyer, or
  financial advisor, it is essential to inform them
  about any overseas assets under personal names or
  company names held in bank accounts. That way,
  they can help organize information properly to
  avoid any future complications when declaring tax
  amounts.
• Key Components
• Corporate income tax is one of three significant
  taxes imposed by governments (local, state,
  federal). The other two are sales tax and
  property tax. Corporate income tax serves as a
  primary source of revenue for local governments.
  Property tax has three main components personal
  property, real estate, and intangible assets such
  as intellectual property. Sales tax is usually
  applied to goods (and sometimes services)
  produced within a given jurisdiction services
  are often exempt. Companies pay income tax to
  various levels of government in many countries
  around the world. This list provides information
  on corporate tax rates. Many companies are taxed
  on their net profit, defined differently
  according to each countrys tax laws. According
  to these laws, income that should be taxed can be
  reduced by allowable deductionsfor example,
  allowances for debts paid or accrued during
  production periods.

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Risk Assessment

• Every group should perform some level of risk
  assessment to protect both their financial assets
  and their reputation. Risk is subjective, but
  common types of bets include loss of shareholder
  value (both immediate and long-term), business
  interruption, financial fraud/loss/theft,
  compliance violations (which can result in fines
  or prosecution), and reputational damage.
• When considering your risks, youll want to
  consider not only your direct exposures but also
  any potential downstream impacts for example, if
  youre operating internationally or across state
  lines, theres a good chance that something will
  happen out of your control. That makes risk
  management particularly challenging you need to
  understand what you face and how it might affect
  your overall business goals.
• A primary tool used in managing risk is
  insurance, which helps mitigate damages
  associated with specific events. But having
  insurance doesnt guarantee success instead, you
  have to plan appropriately in advance so that
  when disaster strikes, your company still has
  enough time and capital on hand to recover
  quickly. Most large groups use outside
  consultants for help with the planning and
  management of various risks. Most external
  auditors are also tasked with performing periodic
  risk assessmentsalthough technically, they
  arent supposed to be providing advice about
  managing specific risks.

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  AZ 85282
• Phone - [phone]
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  anagement-processes/