Corporate tax is a separate form of tax from what you pay on your income as an individual and applies to business and partnerships that have been registered as such. Most countries impose corporate tax on all corporations doing business in the country on income from that country and the tax is based on the total income from all of the corporations, usually on the net profits of the business.

Huge multinational corporations consist of thousands of employees and often have a massive accounting team dedicated to maximising the corporate tax efficiency of the organisation. However most small to medium enterprise owners are too focused on running the manufacturing or process components of their business to pay attention to how best to maximise the wealth present in their company structure.

Tax and corporate tax, whether imposed on individuals or on companies is here for the betterment of the community as a whole. It is not only the responsibility of government, but also of these organisations and individuals to ensure that the growth of our economy is balanced with the sustainability of society.

Business owners in Ireland might be tempted to think that because of the more lenient corporate tax laws in this country that they are being spared the taxation that companies in other countries face. However, it is important to scrutinise how your business is being taxed and consider getting professional, qualified advice on making corporate tax work for you.

If you are the owner of your own small to medium business, you need to ask yourself the following questions to make sure you have maximised the corporate tax efficiency of your company:

• If you a Proprietary Director of your own company, are you sure you are maximising the tax efficiency of this title?

• Is the entirety of your wealth locked inside your company?

• Do you know how to extract this money from your company structure in the most tax efficient way?

• Have you prepared for retirement reliefs available? Are you aware of what is available and whether you are entitled to these reliefs or not?

Perhaps after looking at these questions you've realised that you need a professional tax consultant to help you make the most of your business. Or perhaps you are on the verge of starting your own business. In addition to having a basic business plan and the capacity to monitor and measure you outgoing expenses and regular income, you should probably set aside some time with a tax consultant to ensure that your corporate tax structure doesn't hinder the growth of your company.

Paying corporate tax, as is the case with any form of tax payable to the Irish or any other government is a required by law. Remember that, from fitting crowns to fitting crown moulding, it doesn't matter what industry you are in, where you are based or how many people make up your company. Consider speaking to a tax consultant if you do not understand what is required from you from a personal or corporate tax perspective.

Corporate Tax Consultants based in Ireland, McNamara and consultants. http://www.personaleconomy.ie