Tax Planning With Asset Protection Planning Instruments


Tax Planning With Asset Protection Planning Instruments.

The concepts of tax avoidance and tax planning are often, but wrongly, considered to be synonymous. For this reason it is always necessary to specify that by the term tax evasion one means illicit acts expressly forbidden by the tributary norms, aimed at reducing or eliminating the tax collection completely, by not reporting, in the income tax return, all or in part the income generated.

With regards to fiscal elusion, we can say that unlike fiscal elusion, doesn’t act in completely unauthorized way, but it is used by applying those norms or those legislative gaps, that allow to abuse the law, in as much as the same law is used for receiving reductions or not-otherwise-due exemptions, by altering in this way the real contributive capability of the tax subject.

The thin difference between fiscal elusion and fiscal planning is due to the fact that many laws, such as that Italian law, don’t recognize the possibility to plan the taxes as any other cost, as for example it happens in the United States. We can say however that the tax planning is the employment of all those operations that allow getting a tax level reduced or deferred in the time.

For such reason, in the last times, a new subject has developed and it has been denominated Fiscal Engineering. It is practiced by professionals who, thanks to their knowledge of the various tributary regimes of the tax havens or of the countries with a low tax imposition, succeed in recommending their clients those operations that would help them avoid being suffocated by taxes, thus let them compete on international markets. The mastery of the fiscal norms is very important since many states offer advantages details only to specific categories of subjects: the expert will have to recommend how and where to invest after having analyzed the client’s business sector.

The ISOG lawyers and attorneys at law are expert in tax planning and can help you find the most appropriate solution to your needs.