You have received the results of your Carbon TaxScan, but how do you apply this insight into reducing your future carbon tax exposure?
How does it work?
Should your business be carbon tax liable the next step is to identify ways to mitigate your tax bill through the variable tax free-allowances provided, including making use of carbon offsets. This can be done with our Carbon TaxCoach, where we work together on a strategy for reducing your future carbon tax bill.
The CarbonTaxCoach involves the following:
- Calculating to what extent your company can reduce its estimated carbon tax liability (“tax payable”) by taking into account the applicable variable tax-free allowances that your company would qualify for (these include trade exposure, ‘Z-factor’ and offset allowance calculations);
- Developing a carbon offset strategy which addresses questions such as:
- How to link offsets to broader company objectives?
- How to link offsets to CSI / social development programmes?
- Whether purchasing is a function of price and / or project type?
- Who will manage this process (internally or outsourced?)
- When to purchase offsets?
What can you do with the outcome?
A Carbon TaxCoach will enable your company to look at ways to decrease its future carbon tax as well as developing a robust offset purchase strategy. By purchasing carbon offsets your company may save as much as 20% on carbon tax.