Tax minimization has always been our “bailiwick.” Through every legal means possible, we work to minimize our clients’ tax and we work as an advocate for our clients. In other words, we work for you, not the IRS or any other tax agency.
We’ve often been asked, “are you aggressive on taxes?” Like your favorite attorney, our answer is, “It depends.” It depends on our client and their tolerance for risk. For clients who have a low tolerance for risk, we adopt a conservative approach. And for clients who have a high tolerance for risk, we adopt a more aggressive approach.
That said, though, even our aggressive approaches are well-founded in law, regulation, case support, and sound economic principles. One of the points of difference for Tembo is our willingness to accept, even embrace, structural complexity in order to achieve a positive result for our clients. In doing so, we endeavor to bear the burden of the complexity ourselves while keeping our clients administrative burden at acceptable levels. This significantly helps clients come to terms with the cost-benefit analysis of tax minimization strategies.
A quote attributed to former Supreme Court Justice Louis D. Brandeis, who served on the Court from 1919 to 1939, helps illustrate how a slightly more complicated structure (or route, in this case) results in tax minimization. An even more importantly, helps illustrate how these more complicated structures represent tax avoidance instead of tax evasion.
I lived in Alexandria, Virginia. Near the Supreme Court chambers is a toll bridge across the Potomac. When in a rush, I pay the toll and get home early. However, I usually drive outside the downtown section of the city and cross the Potomac on a free bridge. The bridge was placed outside the downtown Washington, D.C. area to serve a useful social service: getting drivers to drive an extra mile to help alleviate congestion during rush hour.
If I went over the toll bridge and through the barrier without paying the toll, I would be committing tax evasion. However, if I drive the extra mile outside the city of Washington and take the free bridge, I am using a legitimate, logical and suitable method of tax avoidance, and I am performing a useful social service by doing so.
For my tax evasion, I should be punished. For my tax avoidance, I should be commended. The tragedy in life is that so few people know that the free bridge even exists.
~Supreme Court Justice Louis D. Brandeis
Let us help you design a bridge that routes you around the toll and effectively minimizes your tax.