Lets clear this point right now. There are no shortcuts to tax minimisation. The magic secret of cutting your tax bill comes from thinking about tax impact and consequences before entering into a personal or business transaction. Generally there are many options and alternatives to choose from each with varying degrees of impact on your tax liability. The tremendous growth in tax planning over the last decade is undoubtedly due to the present high tax rates faced by most taxpayers.
Tax is a fact of life.
The more one has to pay, the more tempting it is going to be to try to beat the system. In all planning therefore, a fine sense of balance is vital, to tie in any tax saving with the cost of implementation and administration and the effect of the plan on other laws. The objects of any tax planning exercise are to maximise after tax income in respect of a given quantity of income. There are a number of ways that some taxpayers do this. Good tax planning aims at the overall reduction of liability for tax.