Doing taxes is like planning a trip. If you plan ahead everything will go smoothly but if you fail to plan you will hit bumps in the road and have problems. Tax planning is vital to save money on taxes. Why pay extra money in taxes when structuring a transaction differently will legally and safely reduce your tax liability?
An important activity for any business or individual is to plan their spending in order to legally reduce taxes as much as possible. Why pay extra money in taxes when you don't need to? Small changes before hand can save huge amounts of taxes at the end of the year. When you file your tax return it is too late to make theses changes. Tax Planning helps you make these changes before the fact so you can legally pay the lowest amount of taxes.