Tax Avoidance or Tax Minimization is the available to cover escaped accomplished by legal procedure which may be contrary to the intent of the tax law's sponsors but nevertheless do not violate the law.
The following are suggestions on how to reduce tax legally and ethically:
1. Effective Tax Management - To maximize Tax Benefits we have to do the following:
a. To optimize Tax Deductions,
b. To minimize Taxable Income
c. To avail all Tax Incentives
d. To avail Tax Remedies under code
e. To comply all the requirements of the Bureau of Internal Revenue
2. Master the National Internal Revenue Code (NIRC) and be updated with regards to Revenue Regulations, Circulars and Orders.
a. Know the tax rules
b. Know how the rules
c. Maintain a high level of tax compliance
d. Know you rights and remedies
e. Know the rules and process the assessment
f. Know best practices of handling assessment
g. Study and define your strategy
h. Consider favorable settlement such as amnesty, abatement and compromise settlement
3. Make A Tax Planning and Strategies in Your Business
4. Make an Investment On Passive Income (Interest Income From Banks, Inter-Corporate Dividends Other Income Subject To Final Tax and Others)
5. Attend Seminars for Continuing Professional Education (CPE)
6. Ask help to Tax Consultant.
