Question

discuss the advantages and disadvantages of offering tax planning as an additional service

Answer 1

The additional services towards tax planning will involves the knowledge, updating of and implementing of various tax laws and suggesting the strategies according to the people and business requirements to minimise the tax payment for a given period. This advantages and disadvantages of Tax Planning as the additional service :

Advantages are:

1. As an additional service, the business tax liability will be minimized.
2. The minimization of the tax liability will save cash for the growth of business.
3. At a least charges, the small business can save its huge tax incidence.
4. The taxation services providing will lead to proper filling of tax returns.
5. While planning the tax of the business, the deferred tax liability can be used as money interest-free.
6. The taxation service help the people and business to know various tax exemptions.

Disadvantages of Additional Taxation service are:

1. The service will help the business owners to pay less tax to the government kitty.
2. It leads to commit tax fraud by the business peoples with the service providers.
3. The businesses have to do unnecessary expenses on assets purchase to have higher depreciation to reduce taxes or cash blockage in tax saving investments.
4. The development of the deferred tax liability or assets will lead to additional accounting and record maintenance at business end.

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