There appears to be a mistaken notion (especially among small business owners) that when it comes to taxes, an accountant or tax accountant is the only professional to resort to solutions. No doubt, tax accountants have a significant role to play as it concerns tax preparation on the one hand. Still, the relevance of a tax lawyer to any business cannot be undermined.
However, your choice of legal professionals is determined by several factors, like the stage of your case with the revenue service (if any) or your unique goals and needs.
Who Qualifies As A Tax Lawyer?
A tax lawyer or attorney must be called to the Bar and is therefore licensed to practice law within property law. However, they may opt to narrow their interest on the subject of taxes by either acquiring hands-on legal experience, obtaining a further degree in taxes or both.
That applies in other countries as well. Tax is a product of law. Hence a tax lawyer primarily focuses on the legal issues associated with taxes.
Related: Everything You Need To Learn About Property Lawyers
How Does A Property Lawyer Help With My Taxes?
1. Tax advice
A property lawyer specializing in tax-related matters advises individuals, businesses, and government agencies on taxes, tax laws, disputes, and account matters. Every property lawyer stays up to date with internal revenue service regulations and tax laws to be able to advise a client in a time of need. They help you avoid possible penalties and unnecessary interest. Also, a property lawyer helps you with legal strategies to stay below the tax exemption threshold and avoid a significant amount of your money going to the respective revenue service.
When advising a client, the prayer lawyer deciphers what his client needs from what they say and then articulates suggestions that achieve reasonable goals.
When starting a business, a tax lawyer will notify their client to contact the company they are planning to begin to pose a risk of incurring many tax expenses. The property lawyer will proffer advice on structuring transactions in a way that provides an advantage regarding tax. In buying or selling a business, a property lawyer advises a business owner on capital gains and depreciation to minimize tax liability.
2. Negotiation
Should your business be found liable for failure to pay or remit back taxes or penalties (i.e. taxes due to be paid within a stipulated time), the property lawyer would assist you with negotiations with the respective revenue authorities.
Suppose the revenue authorities have placed your properties and bank accounts on a lien. In that case, a property lawyer will assist in undoing it through negotiations in some cases.
The outcome of such negotiations may entail a taxpayer (who is in default) paying the debt owed in instalments or such taxpayer paying less than the amount stipulated.
3. Business consulting
Starting up a new business always comes with tax responsibility. If you are not keen, these taxes may add up and become a severe issue. In addition, the category of business you opt to register has tax implications for your business. Consulting a tax lawyer would assist you in planning a sure way to avoid such problems as well as help you with outlining a suitable tax structure for your company
Laws create taxes, and it has to be professionally understood, especially their legal aspect, to avoid the untimely winding up of a company. Therefore, tax lawyers ensure they are up to speed on current tax legislation that could influence your business strategy. As such, lawyers are in a better position to combine all aspects of their studies, such as business law, property law, corporate law, insurance law e.t.c to come up with the most beneficial way a business enterprise can handle its taxes.
4. Tax Investigating Services
Have revenue officials harassed you to pay levies or obtain permits you don’t know? A property lawyer would assist you in verifying the legitimacy or otherwise of such levies.
5. Estate Planning
Estate planning involves anticipating and making arrangements for managing and distributing a person’s estate during a person’s lifetime in the event of death or such a person becomes incapacitated.
The process of estate planning requires the need for tax considerations. Suppose you’re considering creating an estate plan from your assets. In that case, a property lawyer will assist you in avoiding a large part of your assets being remitted as taxes to the Government, amongst other things.
6. Tax Audits with Revenue Authorities
Although the preparation of audit statements is the exclusive purview of tax accountants, tax lawyers have a role to play in the audit process, such as; aiding clients in preparing for audits, meeting with revenue officials and representing clients when needed.
Auditing does not necessarily mean the client has defaulted or done something wrong; it simply means the revenue authorities want to take a closer look, and a tax lawyer can help navigate the process.
7. Legal representation
Property Lawyers represent their client’s interests in court and with revenue authorities. In the case of tax crimes, they can organize and oversee the structuring of settlements with the tax authorities. Should you be involved in a tax controversy which has been assigned to a revenue officer or a revenue court, or a tax tribunal, or you wish to institute legal action or a tax appeal against the revenue authorities, it is highly recommended that you are represented by someone who has good knowledge on tax law and in addition knows their way around the courts.
In Conclusion
Both tax accountants and lawyers assist with tax planning, financial decisions and minimizing tax liabilities; however, a tax accountant helps with the financial aspects of the process, while a property lawyer assists with the legal aspects of taxes in the face of possible problems. Although a property lawyer can help you in the event of tax controversy, it’s best to prevent issues in advance by consulting with one in the first place.
