Taxes will always take up a big chunk of your income, but you do not have any choice but to pay... You just need to know effective tax strategies and integrate them into your financial plans.
Australia (PRWEB) July 20, 2012
Members Alliance Australia, a leading financial services business, has revealed how using the right tax effective strategies may lead to numerous financial benefits. This is in line with a new report showing that Apple, one of the world’s largest and most profitable companies, has surprisingly been paying minimal taxes, despite the huge amount of income it has been generating.
In a report released by The New York Times, it was shown that Apple is only paying approximately 9.8% in taxes globally, when under normal circumstances it should be paying considerably more than that rate. According to analysts, this is attributable to the efficient tax strategies the company has been utilising in the course of its business operations.
The same report showed that the giant tech company has been using legal strategies where it was able to allot around 70% of its profits outside of the US, thereby gaining large amounts in tax savings. On an annual basis, the company saves approximately $2.4 billion in federal taxes in the US.
According to the report, Apple, using its own techniques, was able to make big savings by directing all iTunes sales from the Middle East, Europe, and Africa through Luxembourg. In addition, it was also collecting a company tax rate of only 12.5% for its patent royalties in Ireland, instead of the usual 35% tax rate in the United States. And as reiterated by industry experts – these actions are all legitimate and legal.
Apple has been enjoying big savings with its payable taxes in the US as well, the report said. The company instituted a subsidiary in Nevada and is holding US assets there, in order to avail of the state’s 0% company tax rate, instead of being taxed at California - where company taxes are imposed at a rate of 8.84%.
Because of these figures, analysts are suggesting that businesses, as well as individuals, should learn to use the proper finance strategies in order to avoid paying higher taxes – since certain states in Australia usually provide tax deductions, exemptions and benefits that one can take advantage of. The advice is to seek the help of a financial consultant or expert to make this possible.
David Domingo, CEO of Australian finance specialist group Members Alliance, had this to say about utilising tax correct methods for minimising tax payments and efficient wealth creation: “Taxes will always take up a big chunk of your income, but you do not have any choice but to pay. Fortunately, there are certain parts of our tax laws that actually allow tax deductions and exemptions – which will result in decreased tax liabilities. You just need to know effective tax strategies and integrate them into your financial plans. You can always consult finance experts to help you make the most out of your finances.”
Members Alliance is a top financial services firm in Australia. The company engages in numerous services to help secure clients’ financial future. Their services include debt conversion and debt reduction strategies, wealth creation techniques, correct structure and cash flow methods. The company is also known for providing tax effective methods that will result to lesser taxes for individuals and businesses.
For any of your financial concerns, contact Members Alliance today. You may call them at 1300 365 731 or you may visit their website at http://www.membersalliance.com.au/about-us.