Tax Law and Regulation in Tai-Ga Company, Free Essay for Students

Tax law and regulation

Tai-Ga company needs to comply with the laws and regulation that evolves around tax compliance. The board of directors of the company should vest with the duty to approve the company's corporate policies and come up with appropriate tax strategies. Hence, the board of directors needs to be responsible for approving investments and transactions that are especially significant from tax standpoint about the high amount or unique characteristics that are associated. Tai-Ga as an organization should have a tax strategy that primarily consists of ensuring it has complied with the applicable tax rule and regulations. To comply with the tax law and regulations, it needs to create an appropriate and effective tax policies that should be followed by the entities that are within the purpose of establishment of law and regulation. All this needs to be in the framework of attaining the firm's interest and support the long-term business strategy. It is with purpose complying with tax law and regulation that it doesn't accrue with tax risks and inefficiencies that may be present in the implementation of the firm decisions.

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Tax benefits

There is need of Tai-Ga using artificial structures that are not associated with the firm purposely reducing the firm's tax burden as well it doesn't enter into transactions that solely erode the company's tax basis which might result in transferring profits to low tax territories of the firm. Configuring with tax laws and regulation the firm will be able to avoid opaque structures for tax purposes that are understandable as structures calculated in preventing knowledge by competent tax authorities. The firm complying with tax law and regulation it will be able to provide useful tax-related data as well documents that may be requested by the competent tax authorities as soon practicable with the recommended objective. With proper adherence of tax law and regulation, the company can follow recommendations of proper tax practices codes that are continuously in the implementation by the government bodies involved taking account of the firm's needs and circumstances.

Tax Calculations

The organization needs to calculate tax rate that is accrued to the company efficiently. It is with the purpose that the firm will able to realize the profit portion that the company owes in the effective tax rate. Through tax calculations, the company will be able to recover lost money and use those losses in offsetting the portion of the current and future profits of the company. The company has proper tax calculations it can have additional benefits that would trigger investment in research and development.

To facilitate practical tax rate calculation, the company needs to use a couple of lines on its income statement. As a company, it needs to divide its income tax expenses by earnings before taxes are made. The company complying with useful tax calculations the company can invest smartly by requiring excellent numbers. The company also needs to employ personnel that is well diversified with knowledge regarding taxation. It is with a purpose that the firm will not have problems that are associated with unskilled personnel. Acknowledged tax calculators can access all aspects that bring forth areas that should be utilized by the company on its operations which are thought to generate profits for the company. Tax calculators are of significance as they help the organization no to experience tax evasion and avoidance as it has a negative impact on the organization.