Handling tax is an important part of managing a business. Whether you are running a big one or a small one, not being able to do proper audits or failure to comply with certain requirements can affect your finances or assets. You may even face criminal charges. This is where having a tax lawyer comes in handy. But how do you find a good tax lawyer?
Read on to know more about tax law, the benefits of having a tax lawyer and what to consider when getting one.
What Is Tax Law?
Tax law, also known as taxation law or revenue law, is a set of laws that governs all processes involved in assessing and collecting taxes. It has a wide range of rules that cover the legal responsibilities of individuals, entities and corporations when it comes to revenue and calculating owed taxes.
Tax Law in Australia [H2]
The Australian taxation law, which is implemented by the Australian Taxation Office (ATO), can be complex. It approximately has 125 taxes, including Commonwealth taxes like income tax, capital gains tax, fringe benefits tax, goods and services tax and others. Without a tax lawyer to guide you, it is easy to get confused with the strict regulations as this field of law is very broad.
Forms of Taxes and Excises in Australia (Federal and State)
- Capital gains tax
- Corporate taxes
- Departure tax
- Excise tax (fuel and luxury car tax)
- Goods and services taxes
- Personal income taxes
- Property taxes
- Trustee liability taxes
Resident’s Income Tax Rates (2021–2022)
As stated by the ATO, here are the tax rates applied to individuals who are Australian residents.
- 0 – $18,200: Nil
- $18,201 – $45,000: 19 cents for each $1 over $18,200
- $45,001 – $120,000: $5,092 plus 32.5 cents for each $1 over $45,000
- $120,001 – $180,000: $29,467 plus 37 cents for each $1 over $120,000
- $180,001 and over: $51,667 plus 45 cents for each $1 over $180,000
For foreign residents:
- 0 – $120,000: 32.5 cents for each $1
- $120,001 – $180,000: $39,000 plus 37 cents for each $1 over $120,000
- $180,001 and over: $61,200 plus 45 cents for each $1 over $180,000
What Do Tax Lawyers Do?
The role of tax lawyers is to provide assistance with matters related to tax through advising and finding solutions for complicated issues. They analyse tax computations or returns, help clients comply with federal or state regulations and handle legal proceedings.
Tax Lawyers Vs Certified Public Accountant (CPA)
Both a tax lawyer and a CPA are knowledgeable about taxes. However, they handle different aspects of taxation.
A CPA handles business and accounting like filing taxes, bookkeeping, managing payroll, financial planning, finding all tax deductions and credits you qualify for.
If the issue that you are facing is on the legal side, tax lawyers in Australia are your best choice because they can deal with liens or levies due to unpaid taxes, object to tax decisions, provide legal advice in writing and represent you in court.
Benefits of Getting a Tax Law Specialist
Is it worth getting a tax lawyer? Yes. Here are some of the reasons why.
- They understand the taxation law and have the right skills and experience related to tax regulations.
- They are bound to client confidentiality.
- They can immediately provide solutions before things get out of hand.
- They can help you if you are being audited or accused of tax fraud.
What Should You Consider When Hiring a Tax Lawyer?
With numerous tax lawyers out there, doing research is an essential part of the hiring process to make sure that the one who will work with you is genuine and capable. Check on your local bar association if they are licensed or search for their websites or social media pages to see if people are satisfied with their service.
Use Your Network
Ask for friends, family members or acquaintances if they can refer one to you. They will surely offer a tax lawyer who can deliver commendable work.
For example, Carlton IN Business (CIB) helps identify and facilitates opportunities for its partners and members. It’s the largest corporate network in the Australian business landscape.
With their premium networking events, you can develop relationships with the right people, even with a tax lawyer. CIB also has a designated connector to facilitate introductions to other organisations within their network, specific to your business needs.
Gives Clear Terms and Fees
When you meet with a lawyer for a consultation, they should be able to clearly explain procedures, their working terms and costs. Beware if the price that they offer is too high or too low.
Get a Dually Certified Professional
If you can find one, hiring a tax lawyer with experience in accounting-related tasks can help you with both financial management and legal obligations.
How Madison Marcus Can Help You
If you are looking for a tax lawyer in Sydney or Brisbane, Madison Marcus can assist you. We are an award-winning law firm with experienced lawyers who are experts in federal and state taxation, as well as superannuation laws. We have a dedicated tax division that keeps up to date with the latest legislation changes and offers clear, practical, cost-effective advice and solutions to achieve the best possible outcomes.
We can assist you in these areas:
- Tax advice — advising on complex tax issues at federal state levels.
- Superannuation – self-managed super funds (SMSFs) — providing advice to SMSF members and trustees on superannuation law compliance. We also assist in implementing more complex and effective strategies for maximising retirement income for members from SMSFs.
- Private rulings — drafting and handling private ruling applications in areas where there is ambiguity and potential tax risk
- International tax — foreign residence status, international tax and cross-border transactions.
- Objection to taxation decisions — preparing and lodging objections regarding unfavourable taxation decisions on your behalf.
- Tax litigation — representing you at all levels in your tax dispute (AAT, Federal Court and High Court).
- Tax audits — making sure that an audit runs smoothly and quickly, with a practical commercial result.
- Payroll tax — advising and assisting clients in understanding the law governing payroll tax compliance and reaching effective solutions quickly.
For all enquiries or to book a free 15-minute consultation, contact us today.