the governments of some countries use taxation system to promote investment.
taxation laws are enacted to encourage domestic and international corporations to either invest or raise capital,and tax breaks are given to specific industries or to certain types of expenses to attract investors and consumers.
As a result of these taxation measures, there is significant scope for taxation planning in some countries and companies would be well-advised to use such opportunities to structure their business in the most tax effective manner.
For effective taxation planning, companies rely on tax specialists who must have an excellent understanding of both their clients' business and various taxation laws. Companies turn to their tax advisers for help on all the taxes for which they are liable, such as income tax, sales tax, property tax and payroll tax. These tax specialists are normally Chartered Accountants and CPAs who are not only involved in the preparation of tax returns(compliance), but who also give advice on multi-national company's domestic and foreign operations(consulting). Furthermore, they represent their clients before the tax authorities.