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What constitutes a tax planning strategy?
A tax planning strategy encompasses various approaches and techniques employed to effectively manage tax-related matters. It involves analyzing financial situations, understanding tax laws, and implementing actions that aim to minimize tax liabilities while maximizing tax savings. This includes strategic decisions related to income, deductions, credits, gains, and timing of financial transactions. The overall objective of a tax planning strategy is to optimize the tax position of individuals or businesses within the legal framework, ensuring compliance while achieving the most favorable tax outcomes.
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