We would like to point out that the tax concepts and calculations shown on this website are only examples and illustrative; they are also not complete in some cases. DUNAMIS MIND accepts no liability and gives no guarantee that they are up-to-date, complete and correct.
Binding advice is given by us exclusively in personal contact on the basis of a corresponding order agreement.
The terms “tax planning” and “tax design” have a dazzling flair in the public in some environments, and everyone probably has his or her own ideas and judgement about them. The political spectrum ranges from demanding a tax on the rich and moral condemnations to “tax avoiders” and aspects of justice to the view that the state should not get more than is unavoidable, despite all efforts.
In practice, businesspeople see “tax planning” as a range of activities:
- Simple claiming of the operational inducement of expenditures in private interest
- Operational recognition of assets that are used privately
- Accounting policy with regard to the valuation of assets and liabilities
- Consultancy contracts and invoicing based thereon
- Financing arrangements
- Complicated overall business designs (corporate structures), which sometimes attract attention in the press (e.g. Apple, Amazon, Google, Starbucks)
At DUNAMIS MIND we say:
Tax planning in general is not to claim that something is what it is not (often with the benefit of hindsight),
but on the other hand, to create structures at the beginning of business activities, to plan business transactions and facts, which are legal within the framework of tax regulations.
This can include, for example
- Is the company financed by equity or debt?
- Company shares are held as private or business assets
- The company is authentically operated from Germany or from abroad
- A company car is provided, or travel expenses are settled via the use of a private vehicle
The sound tax planning as practised by DUNAMIS MIND is based on legally oriented work: a situation is created in a planned manner whose characteristics (facts) fit under the norm of a tax law with the desired legal consequence.
On the other hand, the following, partially widespread behaviour is very rarely of lasting success: the facts already realized are subsequently “bent” in such a way and/or the norm is subjectively reinterpreted until both fit together.
National tax structuring therefore generally consists of the work of incorporating a future asset/business structure into tax-efficient, national legal norms.
International tax structuring essentially consists of exploiting the tax differentials between countries.
At this point, there is an opportunity to distinguish between tax planning and tax avoidance/evasion. The terms tax structuring / tax planning belong to the legal activities, whereas tax avoidance / tax evasion belongs to the illegal activities.
The orientation at section 370 of the German tax code is useful to see what is to be understood as tax evasion. Tax evasion is committed by anyone who
- provides the tax authorities or other authorities with incorrect or incomplete information about facts relevant for tax purposes,
- in breach of duty, leaves the tax authorities unaware of facts relevant for tax purposes, or
- omits the use of control characters or tax stamps contrary to duty
and thereby reduces taxes or obtains unjustified tax advantages for himself or for another person. In particular, taxes are reduced if they are not, not fully or not on time assessed.
We at DUNAMIS MIND would like to be your partner in shaping your business activities. We can work out with you an individual concept for a tax-efficient structure of your business.
You will see that with our legal and multinational bases we have the knowledge and experience to provide you with a good and solid solution in the confusing multitude of aspects and information in this field. We are looking forward to a conversation with you.