To prevent errors or omissions, potential lawsuits, economic sanctions, and exhaustive audits, and to save time and resources, we share key insights on tax compliance.
Hearing about legal obligations might spark endless concerns and doubts. Therefore, when discussing tax compliance, three questions are pivotal for understanding and starting the year organized: What is it? Why is it important? And how can it be done correctly?
What is tax compliance?
On a personal level, it’s a civic duty; on a societal level, it’s a contribution to the community’s well-being. For it to be effective, three closely related fundamental aspects need consideration, determining whether it succeeds or fails: financial situation, meticulous tax declaration, and proper accounting of fiscal operations.
Why is it crucial to comply correctly?
While initially linked to social responsibility as individuals or business owners, showcasing transparency and reliability, it goes further. Simultaneously, it ensures the proper functioning of the State by strengthening a country’s economy, preventing penalties or fines from tax authorities, and avoiding costly and lengthy legal disputes.
How to execute it correctly?
A fundamental pillar and support here is rigorous accounting, providing accurate and precise information about a person’s or a company’s financial situation: their income, expenses, assets, and liabilities. Proper accounting enables the generation and presentation of a reliable financial report, classifying various tax concepts correctly, applying appropriate tax rates, and considering deductions and fiscal benefits. As mentioned earlier, it not only prevents errors and omissions but also potential legal conflicts or detailed audits.
When discussing these processes, it involves guidance and support from a specialized team: trained to meet the relevant deadlines with tax authorities, ensuring the legal and sustainable operation of the company or individual. Additionally, they should provide specific and strategic advice according to the client’s needs, covering three fundamental aspects: analyzing the fiscal situation, identifying potential risks, and offering suitable legal recommendations.
