DEPRECIATION AS A TAX OPTIMISATION TOOL

Abstract

The main goal of people conducting tax policy in an enterprise should be tax optimisation. It is commonly known that entrepreneurs can legally pay lower taxes using the possibilities offered by tax regulations. The use of tax optimisation allows reduction of tax burdens, and hence leads to improvements in financial results. The key, in this case, is to draw up an appropriate analysis and to create, on its basis, a tax strategy that will allow minimization of the debt burdens owned to the treasury, in a legal way. It is also important to minimize the risk associated with the use of certain approaches – the interpretation of existing laws needs to be verified by tax authorities, the  judiciary of  administrative courts (both WSA [Voivodship Administrative Court] and NSA [Supreme Administrative Court]) and the Constitutional Tribunal. The present article shows, in a practical way,  how tax risk managers can take advantage of depreciation as a tax optimisation tool. Depreciation generates tax-deductible costs which are usually equal to depreciation deductions. Tax advantages arising from the use of depreciation are the result of shaping the level of the taxable income. Therefore, the condition for an efficient tax costs management of an enterprise is tax depreciation planning