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Learn about tax avoidance from business tax attorneys

Wednesday, February 17, 2016

The latest news about tackling tax avoidance has surfaced within the European Commission (EC). Tax avoidance is the legal use of tax laws to reduce one's tax liability. Individuals have the right to reduce the amount of taxes they pay as long as it is by legal means. However, tax avoidance is often viewed as tax noncompliance.  Thus, each year there are billions of euros that get lost to tax avoidance. This leads to individuals and businesses paying higher taxes. 

The EC plans put an end to aggressive tax planning.  The tax authorities plan on sharing tax information about individuals with citizenship to more than one country. Some officials would rather see that tax information made available in the public domain. 

Last week, 31 members of the EC signed an agreement to combat companies from using aggressive tax plans that result in the avoidance of paying corporation tax. The new agreement will put into effect the notion that it will be more difficult for companies to hide assets in tax havens or pay taxes in a country with lower tax rates since they are multinationals. 

The new agreement will stop common tax avoidance methods; recommendations will be made to prevent tax treaty abuse; tax authorities will share tax-related information on multinationals

In the United States, tax avoidance is also an issue. In fact, companies in Corporate America are interested in reducing their taxes. Many U.S based companies have moved their corporate offices to Europe in order to reduce the taxes they are liable for.  Some companies split themselves in two to cleave off a division that can operate as tax-free. Companies are constantly looking for tax loopholes or creating new ones in order to avoid the high rates of corporate taxes they are responsible for. 

The U.S. federal government is looking to change the corporate tax code. There are more and more corporations moving overseas, which is costing the U.S. government billions of dollars over the next decade. 

The Strategic Tax Lawyers, LLP are experienced business tax attorneys, estate planning attorneys and offshore attorneys who have counseled clients about the protection of their assets and offshore tax havens.  These IRS tax lawyers can help you plan how to remove guesswork to prevent any issues.  The Strategic Tax Lawyers offer free and confidential consultations about estate planning, estate tax exemption, will & trusts and tax-related issues. Call today at (800) 669-4775 if you need assistance.