27.01.2013
For a starter list of questions to check when filing taxes towards the end of the year, find the answers to these important questions.
Business profits and taxes need to be monitored regularly, especially towards the end of the year. Below is a starter list of things to check out. Professional advice is recommended in each relevant country.
Business
On the business side, consider among other things:
[icon type=”icon-caret-right”] What are your goals, and are you achieving them?
[icon type=”icon-caret-right”] Are your sales increasing?
[icon type=”icon-caret-right”] Are you networking?
[icon type=”icon-caret-right”] Do you check your bank balances and cash flow every morning?
[icon type=”icon-caret-right”] What is your gross profit rate?
[icon type=”icon-caret-right”] Can it be improved?
[icon type=”icon-caret-right”] What is your likely net profit after all expenses this year?
[icon type=”icon-caret-right”] What is your likely tax bill this year?
[icon type=”icon-caret-right”] Are installments paid?
[icon type=”icon-caret-right”] For year-end planning, check the amount and timing of: income, expenses, inventory count, and find out if other accruals are possible.
[icon type=”icon-caret-right”] Is project planning possible?
[icon type=”icon-caret-right”] Do you have charitable donations?
[icon type=”icon-caret-right”] Are your pension, hishtalmut (study funds) and life insurance enough to support you?
[icon type=”icon-caret-right”] If relevant, do you optimize the aliya 10-year exemption for foreign income?
[icon type=”icon-caret-right”] Are you an exporting manufacturer?
[icon type=”icon-caret-right”] If so, are you a preferred enterprise?
[icon type=”icon-caret-right”] Do you have, and optimize, intellectual property (IP)?
[icon type=”icon-caret-right”] Do you plan to file taxes on any foreign source income?
[icon type=”icon-caret-right”] Has the transfer pricing between your entities been reviewed?
[icon type=”icon-caret-right”] Are your accounting books up to date and helping you manage your records?
[icon type=”icon-caret-right”] Is your tax, VAT, and national insurance reporting up to date?
[icon type=”icon-caret-right”] Are all employee matters up to date? (This includes agreements, mandatory pensions, etc.)
Family/Personal
On the family/personal side, consider these questions, among other things:
[icon type=”icon-caret-right”] Do you and your spouse have up-to-date wills in each relevant country?
[icon type=”icon-caret-right”] Are you expecting an inheritance from abroad?
[icon type=”icon-caret-right”] Are you planning against a double tax?
Personal investments
Consult a qualified investment adviser periodically.
[icon type=”icon-caret-right”] Do you owe foreign taxes?
[icon type=”icon-caret-right”] Do you have a Israeli foreign tax credit?
[icon type=”icon-caret-right”] Is your Israeli tax withheld at source?
[icon type=”icon-caret-right”] Do you have Israeli halfyearly capital gains tax reports?
[icon type=”icon-caret-right”] Do you optimize the aliya 10-year exemption?
[icon type=”icon-caret-right”] Do you have trusts?
[icon type=”icon-caret-right”] Are your pension, study funds and life insurance enough to support you?
[icon type=”icon-caret-right”] Do you have any charitable donations?
As always, consult experienced tax advisors in each country at an early stage in specific cases.
The writer is a certified public accountant and tax specialist at Harris Consulting & Tax Ltd