Many business owners and professionals carry on and conduct their businesses in a tax inefficient manner thereby voluntarily pay more tax. A number of factors will determine the ideal Corporate structure to conduct business through.
It is crucial that thorough and comprehensive planning be undertakes on the acquisition of properties, investments, businesses and other assets due to the fact that major tax advantages can be achieved on acquisition or sale of the assets. In some instances tax can be 0 zero whereas an incorrect structure can trigger taxes of 37%.
Correct tax planning can also result in the transfer of assets without triggering any taxation.
It is of paramount importance that the business be optimally structured, failing which millions of Rands may be unwittingly paid instead of the potential savings that could be achieved in utilising the appropriate structures.
The structures we establish do not generally trade and are therefore usually receptacles of after tax funds.