We aid companies and individuals in the field of tax planning. We provide professional tax advice regarding the correct manner of incorporation, as well as the business activities that already exist. Our firm accompanies and advises firms at various stages and provides consultation during transactions, exercise of options, offsetting losses, and more, while also seeing the full picture of the accounting, economic, and legal aspects and utilizing the experience of our firm's representatives in the tax authority.
What is Tax Planning?
Tax planning is the use of legal tools to reduce tax liability. Tax planning is a pre- calculation of accounting and business operations and their implications in terms of taxation, following tax planning the taxpayer can choose a legal way in which they will pay less in taxes. Therefore, effective tax planning for a company is a prerequisite for its survival and prosperity.
Tax planning is carried out by an expert tax planning accountant who utilizes grants, laws, and loopholes in complicated tax laws in order to reduce the tax to be paid while complying with the law. The importance of tax planning was previously stated by Supreme Court Justice Shamgar in “Hazon” verdict: “The right and even the duty of tax law experts to plan legal transactions so that there will be no tax petitions.”
Mergers, Splits and Acquisitions
Our firm provides consulting and support services for all types of mergers and structural changes. We can help with statutory mergers in which the company absorbs all the activities and assets of the transferring company, exchange of shares, sale of rights by an existing shareholder and more.
Our firm assists in complex tax planning, determining the merger strategy both from the economic and commercial aspect and from the taxation aspect and accompanies the merger process, identifies risks, maximizes the tax advantage and examines the ideal structure.
The staff of our Tax Planning Office have experience in handling mergers, both in senior positions in the tax authority and in the private sector.
Read more about merging companies and tax planning here.
Tax Planning - Encouragement of Capital Investments Law
The Capital Investment Encouragement Act is intended to encourage exports, employment, and develop the country’s production capacity. Companies that meet the conditions of the law will receive very significant tax benefits, including a reduction in the tax rate applicable to them, sometimes even to 80% less than the regular tax.
Our firm has experience in determining tax opinions in this area as well as in reaching tax arrangements with the Tax Authority even in the most exceptional and innovative cases.
Read more about the Capital Investment Encouragement Law and Tax Planning here.
Tax Optimization and Transaction Support
The firm deals with tax advice in connection with investments and the classification of investments in an optimal way for the client. We classify income in a way that minimizes the tax by examining the possibility of applying various tax incentives and more.
The tax planning margin in transactions is wide as the planning is done at an earlier stage.
In some cases, we would like to set up the business in a home company, family business or a more complex tax structure that includes different partnerships and companies.
Tax Planning - Offsetting Losses
We provide advice to companies and individuals regarding losses that can be offset in the tax year and subsequent years. In addition, our firm examines the type of income that can be offset, assists in the full utilization of offsetting options, softens losses, offsetting when merging companies or bringing in a partner, etc. Our office writes opinions on the subject and appeals to tax decisions with the relevant department in the income tax administration.
Tax Classification
Classification of income (whether it is ordinary or capital income) and classification of tax accordingly, while reducing tax liability and complying with the requirements of the law.
Sometimes the same transaction can be classified as capital gain (to which beneficiary tax rates will usually apply) as opposed to business activity (to which ordinary tax rates will apply). Capital gains taxation is a complicated issue that has changed quite a bit over the years.
In some cases, we would rather classify the income as business income (when there are losses, the shareholder is unable to act).
Advice on taxation of payment given in a judgment or arbitration
Payment or damages received in a lawsuit or arbitration are subject to tax. Our firm examines whether it is possible under the law to classify the payment in a way that will not be considered taxable income and examines what is the correct way to classify the income in a way that will reduce the tax. Sometimes the advice includes an opinion on the matter which provides protections from criminal exposure.
