As we know, the tax burden in Brazil is very high, which is why many entrepreneurs seek strategic measures to reduce tax payment expenses. In this context, tax avoidance is a good alternative to achieve this objective in a legal way. This is a technique in which efficient planning is used, optimizing finances and respecting the legal system. Therefore, it is important to carry it out correctly and prevent the company from suffering any type of loss.
With this in mind, we created this text so that you better understand what tax avoidance is and how it can help reduce your business expenses.
What is tax avoidance?
It is a measure used by the taxpayer to save on paying taxes, through previously carried out tax planning.
It should be noted that there is no type of illegality in this action, given that legal standards are respected. Remember that tax avoidance is completely different from tax evasion, as the latter involves the use of maneuvers to avoid payment of taxes through violation of tax law. This is characterized as tax evasion — therefore, illegal. In short: in tax avoidance the objective is to have a lower tax burden, but pay taxes correctly. In evasion there is non-compliance with legislation.
How does tax avoidance work in companies?
Tax avoidance can occur both based on the law itself and case law. In the first case, there is a legal incentive for institutions to opt for measures that are more economically advantageous for them. One of the main examples is the choice of the appropriate tax regime. For example: consider a small bakery, with 2 employees and a turnover of R$18 thousand per month. In this case, the most appropriate regime to save on taxes will probably be Simples Nacional. However, to be sure of this, an evaluation by an Accountant will be necessary, who will observe the activity carried out, the reality of the business and several other factors.
In this case, how important is tax planning?
Tax planning is a study carried out that seeks to take advantage of the tax benefits that the law offers, such as, for example, locating your company in regions where there are tax incentives. Thus, we can say that it is a resource that predicts the economic activities of the business and finds valid and legally compliant means to reduce the amount of taxes and duties paid. Without tax planning, the company may end up opting for an easier, but inappropriate, path, which could result in excessive tax payments.
Did you understand better how tax avoidance works? Always remember that proper planning can bring several advantages to your business.
