Virtually all tax codes are difficult for the average person to understand. As a business owner, you have likely found that sorting out all of the credits, charges, and reporting presents a headache. This headache can only be solved with specialised knowledge. And, while you can take on the monumental task of acquiring this knowledge for yourself, most business owners find it easier to use the services of a business lawyer.
Whether you find yourself in a tricky legal position or whether you simply need some advice on how to proceed with a business deal, business lawyers like Eales & Mackenzie Lawyers in Melbourne will be able to assist. If you have never relied on the professional services of a business lawyer before, then having a better sense of what they can do for your business will help.
So, if you’re wondering whether a business lawyer is right for your needs, let’s look more closely at what the role of a business lawyer is in matters of taxation.
Legal Representation For Your Business
There are bound to be times that your business runs into minor trouble with the tax authorities. While the vast majority of such cases are related to minor discrepancies or unintentional omissions or errors, it is important to have a professional to represent you in these circumstances. Business lawyers will provide the knowledge and expertise you need to navigate through any tricky legal problems you might encounter in your business. They can help you to settle disputes easily and with much less worry.
Professional Tax Advice
Filing taxes is almost as much of an art as it is a science. There will likely be many aspects of the business tax code that you, as a business owner, are unaware of. Some of the finer points of tax law only become clear after extensive study or over years of experience. New business owners are at a disadvantage when it comes to knowing these things. So, having a business lawyer to help you claim everything that you are entitled to is a huge advantage.
When you have a business lawyer at your side to navigate your annual tax reporting, you can avoid missing out on anything that you are entitled to. This provides your business with the tax breaks and benefits that keep more revenue in your pocket. This is an area in which many businesses have difficulty differentiating between what they can and cannot claim when left to their own devices. By working with an experienced business lawyer, you never have to worry that you’re losing out on income unnecessarily due to lacking reporting.
Tax-Sharing Agreements
Whilst not necessarily a common practice within smaller businesses, tax sharing agreements are an established part of the business landscape. These tend to involve corporate groups being consolidated into a single entity for tax purposes, with the head company then being treated as being the sole earner and, in turn, the sole taxpayer of the group.
Given the complexities involved in tax sharing, it’s important to have a business lawyer present. This is because business lawyers hold the role of drafting these agreements and ensuring that they are accurate to the needs of all involved. This process is similar for indirect Tax sharing and tax funding agreements, as well as for the drafting of Division 7A loan agreements.
Legal Professional Privilege
During business agreements, especially those relating to tax and finances, there is a lot of sensitive information which businesses would rather avoid leaking wherever possible. Because of this, legal professional privilege holds that it is the right of any law professional to be discrete and not disclose any information given to them by their client throughout their communications. This can be hugely beneficial if you’re discussing potential accidental breaches of tax compliance or missed obligations, as it ensures that your communications with your lawyer will not be used against you if the situation ends up in court.
Strategic Advisor
When completing a business deal or choosing to structure your business in a certain way, it is essential to think of the tax implications involved. Due diligence is also an important component of tax-related matters. If you are like most business owners, some of these details seem opaque and hard to understand. Relying on the services of a business lawyer who specialises in taxation will help you to complete these transactions most efficiently and advantageously.
An experienced business lawyer will often also be able to provide you with strategies and ideas for improving your processes in the future, including those pertaining to taxation. Be sure to ask your business lawyer questions during your time with them, as you don’t want to miss out on valuable insights into how your business could be more efficient and successful moving into the next period.
Compliance Assistance
Tax compliance is an essential component of running a successful and sustainable business in Australia. It’s also a component that many newer businesses can struggle with, as compliance can be difficult to achieve without the right information and experience.
Rather than trusting your instincts in this area, it is important to have professional and objective guidance. Hiring a business lawyer with expertise in taxation compliance will help you file your business taxes without worry. You will also be able to navigate potential audits by the Australian Taxation Office with greater ease and without stress.
Taking Care Of Taxation
These are some of the main roles of a business lawyer in the area of taxation. As a business owner, taxation is a critical aspect of your operations that you need to get right. Rather than doing it all on your own, it is always a good idea to have professional business lawyers on your side. From drafting documentation to assisting you throughout the taxation process, they are an extremely valuable asset to have.
