Your Taxes: Questions for year-end tax planning

For a starter list of questions to check when filing taxes towards the end of the year, find the answers to these important questions.

Your Taxes_311 (photo credit: Thinkstock/Imagebank)
Your Taxes_311
(photo credit: Thinkstock/Imagebank)
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: • What are your goals, and are you achieving them? • Are your sales increasing? • Are you networking? • Do you check your bank balances and cash flow every morning? • What is your gross profit rate? • Can it be improved? • What is your likely net profit after all expenses this year? • What is your likely tax bill this year? • Are installments paid? • For year-end planning, check the amount and timing of: income, expenses, inventory count, and find out if other accruals are possible.• Is project planning possible? • Do you have charitable donations? • Are your pension, hishtalmut (study funds) and life insurance enough to support you? • If relevant, do you optimize the aliya 10-year exemption for foreign income? • Are you an exporting manufacturer? • If so, are you a preferred enterprise? • Do you have, and optimize, intellectual property (IP)?• Do you plan to file taxes on any foreign source income? • Has the transfer pricing between your entities been reviewed? • Are your accounting books up to date and helping you manage your records? • Is your tax, VAT, and national insurance reporting up to date?• 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: • Do you and your spouse have up-to-date wills in each relevant country? • Are you expecting an inheritance from abroad? • Are you planning against a double tax?
Personal investments Consult a qualified investment adviser periodically.
• Do you owe foreign taxes? • Do you have a Israeli foreign tax credit? • Is your Israeli tax withheld at source? • Do you have Israeli halfyearly capital gains tax reports? • Do you optimize the aliya 10-year exemption?• Do you have trusts? • Are your pension, study funds and life insurance enough to support you?• 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.