Tax Planning Flashcards
1
Q
tax planning
A
- legal and acceptable activity.
- Claiming the allowances that are due provided that the person/ company meets the necessary requirements
2
Q
Basic tax planning examples
A
- salary vs dividends
- pensions
- income and asset splitting
- PA spouse transfer
- Business asset tax relief
- charity
3
Q
Tax evasion
A
illegal activity to reduce tax
4
Q
tax avoidance
A
grey area between tax planning and tax evasion
5
Q
professional ethics requirements
A
- integrity
- objectivity
- professional competence and due care
- confidentiality
- professional behaviour
6
Q
loss of tax revenue (tax gap)
A
- estimated to be £40billion in 2924
- 60% of tax gap is small business
