[Oneday]

What should be the main goal of tax planning?

A.

Maximizing the taxpayer’s tax liability

B.

Optimizing the taxpayer’s after-tax result

C.

Optimizing the taxpayer’s before-tax result

D.

Minimizing the taxpayer’s tax liability

Answer to this question is B, but I don’t know the exact definition for “After-tax result” and “Before-tax result” are.

Can someone explain?

Thanks

[Anonymous]

My understanding is something like “financial results/position after paying taxes”.

[Anonymous]

What they mean by optimization is getting the best result with the lowest cost possible.

So when you do your tax, I'm pretty sure you want to pay the least amount possible, and the amount you pay is the result after all tax calculations.

[Anonymous]

Before tax is the income before considering all tax benefit/expenses.

[Oneday]

Thank you for the answers :). So I guess in another words it means, optimizing the result of an “after” tax consideration (by finding appropriate deductions, exemptions and so on).

Before-tax optimization may have to do with optimizing the business operation I guess?

I may be thinking too hard, but so many questions seem so vague and wordy!

Thanks anyways!

[Author]

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