Updated: Jan 17, 2021
Some tax planning keystones are these:
Deducting: This is the idea of claiming tax deductions or credits that you might not have fully or even partially claimed in the past (e g unclaimed depreciation of some assets or interest in some hire purchase). By making a few changes if doing it, you could create the opportunity to claim some of these deductions or credits.
Investing: Investing in the business itself buying some assets or in some marketing strategy, for instance, it will allow you to save taxes, and also to grow at a higher rate in subsequent financial years.
Distributing: Saving tax if you can split income from one family member who will pay tax at a higher rate to another paying tax at a lower rate.
Deferring: It can be possible for you to take a tax bill that can otherwise be owing this year, and pay it off in subsequent years (e g purchasing inventory before year-end). While you are not eliminating the tax, paying it later is better than paying it today because of the time value of money