SUBJECT – Intention vs Evidence
Hi I'm Barbara Keating, Accountant and small business specialist at MWL Financial Group.
One of the things we find as accountants when it comes time to prepare an income tax return or a set of financial statements is the varied interpretation of various transactions.
At times the intention and the evidence surrounding transactions may now conflict with what the client wants to have as the explanation for the returns. Understanding the implications of a change in interpretation is best done at the time of the transaction. There can be all sorts of implications in an audit situation where the evidence surrounding a transaction conflicts with suggested intention in a tax return.
Using your accountant as a sounding board or as we would suggest – as more than a silent partner in your business – can structure transactions at the time they occur to give the best outcome with appropriate evidence come tax time.
For more information contact us at firstname.lastname@example.org and either me, Barbara Keating or one of our experts will be more than happy to help.