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Tax Saving Ideas in Japan

accounting analytics balance black and white 209224 - Tax Saving Ideas in Japan

I recently met with a client who business is doing quite well. They wanted to discuss ways to minimize their taxes as the year-end was approaching.  

Initially I proposed some of the more common or general tactics such as investing in real estate, insurance policies, or buying items that could immediately be expensed. 

During our conversation I learned that one of the company’s directors was planning to retire. The company was waiting to receive a refund from an insurance policy in order to pay the director’s retirement compensation. But, we decided that from a tax perspective it would be better pay the retirement money before the receipt of the insurance money. 

We also discovered some bad debts that could be written off.

By the end of our meeting we were able to reduce the amount of taxable income by almost 50 percent.

This reminded me of the importance of both knowing our clients business and balance sheets but also spending time together for planning.