The first primary difference between tax planning and tax management is the requirements. While tax planning is not a requirement for either a business or individual, tax management is a requirement. Every individual and business in the United States is required to manage taxes, which includes filing the appropriate state and federal tax returns.
The second primary difference between planning and management is about tax liability. When a business or individual goes through the tax planning process, they are trying to minimize the tax liability of the entity by planning deductions, purchases and expenses ahead of time. Tax management, however, involves making sure that when the tax plan is implemented, that it is according to the tax laws and regulations.
The third difference between tax planning and tax management pertains to liabilities. Tax planning involves taking the actions necessary to minimize the tax liabilities of the business or the individuals. Tax management on the other hand is about avoiding the payment of interest or fees for not abiding by the tax laws and regulations.
- Posts : 8
Join date : 2016-07-19
1.The Objective of Tax Planning is to minimize the tax liability but The objective of Tax Management is to comply with the provisions of Income Tax Law and its allied rules.
2. Tax Planning also includes Tax Management but Tax Management deals with filing of Return in time, getting the accounts audited, deducting tax at source etc.
3. Tax Planning relates to future but Tax Management relates to Past ,. Present, Future.
Past – Assessment Proceedings, Appeals, Revisions etc.
Present – Filing of Return, payment of advance tax etc.
Future – To take corrective action
4. Tax Planning helps in minimizing Tax Liability in Short-Term and in Long Term but Tax Management helps in avoiding payment of interest, penalty, prosecution etc.
5. Tax Planning is optional but Tax Management is essential for every assessee.
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Join date : 2016-09-15