Taxation Practice

Taxation, imposition of compulsory levies on individuals or entities by governments. Taxes are levied in almost every country of the world, primarily to raise revenue for government expenditures, although they serve other purposes as well. Tax law is the practice of law that relates to the assessment and payment of taxes. Tax laws come from a variety of sources. They come from federal, state and local authorities. They’re based in federal and state constitutions, laws and regulations. Tax law involves understanding, implementing and defending the payment or non-payment of taxes.

Tax lawyers help their clients understand tax laws and conduct their affairs in a way that’s advantageous with regards to tax laws. When disputes occur, tax lawyers help their clients assert their rights and protect their interests. Tax law is the understanding and application of tax laws that may impact both individuals and corporate. Clients now often expect their law firms to act as their accountants too. As such, many departments at law firms are now looking to bolster their accounting credentials by way of boosting their client rosters.

One useful way to view the purpose of taxation, is to distinguish between objectives of resource allocation, income redistribution, and economic stability. In the absence of a strong reason for interference, the first objective, resource allocation, is furthered if tax policy does not interfere with market-determined allocations. The second objective, income redistribution, is meant to lessen inequalities in the distribution of income and wealth. The objective of stabilization—implemented through tax policy, government expenditure policy, monetary policy and debt management—is that of maintaining high employment and price stability. Tax law can be very complex and confusing; hence a strong background in academic excellence is a must. Tax solicitors require exceptional skills in analysis, communication and negotiation. They scrutinize and study business structures and constitutions to provide clients with the best possible advice. Furthermore, the job involves plenty of study and research and tax solicitors need to have a close eye for detail.  

Extra qualifications in accounting will be an added advantage. Clients will be very interested in getting all their business advice in one shop. Tax is an integral part of every business transaction and therefore, it makes sense to have a good, solid all-around knowledge.