In Accounting field Taxation is an interesting, challenging area and also having good scope and future. If a person choosing the taxation filed should have the Strong knowledge in taxation and also he should have the knowledge about the implications of taxation in Accounts as well as Finance. We can have taxation as a practice or job also. In a practice we can act as tax consultants, valuer, certifying authority and as a job we can have responsibilities like Taxation manager in the field of Direct tax, indirect tax. In this article myself discussing the some points which essentially required to develop the career in Taxation.
1. Expertise knowledge:
For developing a career in taxation, a person should have the expertise knowledge in the selected area. If he selecting the direct taxation, then he should have the strong knowledge from the fundamental to the assessment and appeal procedures, like that same as indirect taxation as well as International taxation.
2. Update knowledge in tax provisions:
Update knowledge is very essential in every field, but in taxation field it will be must, because the changes in tax provisions are usual. The person in taxation field should aware of the latest updated provisions. Otherwise, their work will be in deep trouble, also will make financial impact on their clients or employer.
3. Interpretation skills:
For a person in taxation should have the skill to interpret the tax laws and act. Interpretation skills lead them to proper tax planning, tax savings and also avoid tax evasion. Some time the interpretation will differ from person to person that time, we can take opinion from the department officials also.
4. Collections of notification & circulars:
All the Taxation acts have been one time enacted by Government, but the yearly changes will be there, in addition to this regular circular and notifications by the department will be there for smooth functioning of taxation issues. So we need to have all the notification and circulars in our hand, it will always help to a typical situation and proper decisions.
5. Collection of Latest Judgments:
Taxation having number of case laws and judgments, a taxation person has to aware of the important case laws & judgment which is related to his field of practice and working, it will help to improve our knowledge as well as confident level in taxation
6. Guidance capacity:
In taxation career, a person needs to have capacity to guide the others person, this guidance capacity will come only you have the strong fundamental, theoretical, practical, analytical knowledge. Your guidance capacity will show your talent in taxation field to your client and Employer.
7. Analyze the implication:
Person involving taxation should have analytical skills; we need to analysis the each and every implication regarding taxation, which relates to tax planning, tax savings decision. Each & every aspects of taxation need to be analyzed and effect on such aspects, impact on that decisions has to be tabulated and need to compare. This type of analysis will guide us to correct way and perfect decision.
8. Maximize the tax savings:
A good tax consultant or taxation manager has to know and utilize the tax planning methods and tax savings schemes allowable under the tax laws and act. We need to plan accordingly the tax scheme applicable to the client or employer. Tax savings methods are not only minimize the tax burden also will help to generate high post tax returns and Government tax revenue. So, plan to maximize the tax savings.
9. Discourage the tax evasion:
There is always difference between tax planning and tax evasion. Saving the tax under the allowable & applicable rules in the act called tax planning, avoid the tax which is not allowable and justifiable under the act is called tax evasion. As a consultant or Taxation manager, your decisions always lead to tax planning only, not for tax evasion. Discourage the tax evasion will help not only to become a good consultant also a good citizen yourself and your clients.
10. Simplified tax procedures:
Your role as Tax consultant or Tax Manager, your procedures and process will be simple and understandable by the client or employer. Even though we are taking care about the tax provisions, as an assessee, they will be the final responsibility to the Government. So what ever the procedure we are implementing, it should properly communicated to assessee and make them understand.
11. Ensure the compliances:
As a Consultant or Taxation manager, your decisions will ensure the statutory compliances and minimize the tax complications like, Interest, penalty, penal interest, default payment or return.
12. Co-ordination with Assessee and Tax authorities :
As a tax person, we should be co-ordinate the assessee and tax authorities; it will lead a good relationship with clients or employer and tax authorities also help to good client and department relationship with us.
All the points are discussed above not exhaustive, every tax persons having their own experience and values. Here myself discussed above points are essential and which can be useful to develop your career as a “Tax Consultant” or “Tax Manager”
All the best.
CMA Ramesh Krishnan