Is it equitable that while large conglomerates can afford to hire savvy planners to help them reduce their tax bill, smaller enterprises end up paying proportionally far more than they should? On one side of the coin is the belief that smaller entities already face formidable challenges even without large tax bills.
As a counterpoint, it could be argued that the system is indeed just, since the tax laws are the same, no matter what size the corporate taxpayer.
The functional difference is the ability of the larger enterprises to use legal technicalities and interpretations to their advantage, as opposed to the probability that the small business simply follows the black letter of the tax rules and regulations.
At the heart of this situation is the reluctance of many accountants to be real tax advisers and to help small businesses arrange their operations to best take advantage of strategies that would result in a lower tax bill.
Lots of accountants simply take the raw numbers from their clients and enter them into a tax preparation program.
No real planning or review process - just in and out.
Accounting and tax professionals hired by small business may argue that among their top priorities is providing their services at a rate that their clients can afford.
They are of the belief that engaging in true strategic tax planning would produce a sizable bill that their customers did not intend to incur.
There may be some truth to the notion that certain small businesses are interested in securing simple tax compliance at the lowest possible fee, it seems logical that increasing numbers of such entrepreneurs would realize that by paying slightly higher professional fees upfront, they may realize tax savings that would far outweigh the initial expenditure.
Ultimately, entrepreneurs must realize that a positive balance sheet is the real objective, and that remitting more money in taxes than they need to is counterproductive.
It is important for business owners to guard against relying on inadequate tax advice simply out of habit or out of an illogical resistance to paying slightly higher professional fees.
The best strategy is to seek tax planning advice that is thorough and strategic, and to do so early in the tax year in order to have the time needed to implement techniques that truly can shrink annual liabilities.
You work far too hard and risk far too much to end the year pay a larger percentage of your profits to the government than you are obligated to.
Learn from from the big guys - be willing to pay extra upfront so that you can later reap the benefits of sophisticated tax planning.
It pays for itself many times over.
Advanced tax planning does not require you to break any laws or regulations.
All you need is an experienced accountant who knows how to use the laws and regulations to your advantage.
Not every accountant can do this - get one that can.