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Showing posts from August, 2022

What are the Advantages and Disadvantages of Venture Capital - Accountants in Islamabad

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 There are numerous approaches that businesses can take to increase their financial resources. For instance, a person who owns a business can give financial support for that business provided they have sufficient funds stashed away in savings. When it comes to the process of generating money for a firm, the shareholders and the general public both have a role to play. What kind of challenges do newly established companies and small firms face? It might be difficult to get money for small businesses and startups due to the fact that these types of businesses lack security. On the other hand, there are organisations that are willing to support new and small enterprises. For instance, venture capitalists are available to provide assistance to small enterprises and startups that have exceptional potential for expansion. What Exactly Is an Investment in Risk? Venture capital is a form of equity financing that is typically provided to new businesses in their early stages of development. The

What is a Tax Avoidance? - Accountants in Islamabad

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 One definition of tax avoidance is the practise of making use of tax reliefs and allowances in a manner for which they were not designed. Altering the nature of a transaction in order to steer clear of paying taxes may also be part of an avoidance strategy. These transactions were carried out, not primarily for business reasons, but rather in the primary intention of securing a favourable tax position. Tax evasion frequently entails the use of fabricated, fictitious transactions that have been conceived with the sole intention of acquiring a favourable tax position. It's possible that financial advisors and promoters will offer you advice on how to lower your tax liability. You need to ask yourself if the person providing you with tax advice is actually helping you save money or if they are trying to sell you a tax avoidance scheme. If you are uncertain as to whether or not what you are doing constitutes tax evasion, you should ask yourself the following questions: Does the potent

How to Avoid Capital Gains Tax When Gifting

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 A capital gain that results from the sale of almost any asset is subject to taxation under the capital gains regime. A disposal includes a sale or a gift. In this video, Malcolm Finney walks you through the steps of utilising Gift Relief to get out of paying capital gains tax on gifts you give to your family. Making a Gift The issue that arises when a gift is given (other than when it is given between spouses) is that the person who makes the disposal does not receive any monies out of which to pay any potential capital gains tax (which is currently charged at an 18 percent rate) (the gift is treated as a sale at market value). Because of this, it's possible that members of the family will be less inclined to give gifts as part of any family tax planning mitigation activity. Gift relief is an attempt to alleviate this issue; it allows the capital gain (and consequently any tax liability) that is deemed to arise to be postponed as a result of the transaction. This is accomplished b