Correct planning and execution avoids the legal consequences contained in current tax legislation, which is why it should be a priority task for the administration and management bodies of companies, as well as the implementation of a compliance policy aimed at minimizing risks.
Furthermore, following creating good tax practices in organizations, these must be communicated correctly, because as Benjamin Franklin said “in this world there are only two things that are certain: death and paying taxes”, and the more knowledge one has regarding the correct declaration and payment of taxes in companies, the better the fiscal health and peace of mind with the tax administration.
Tax non-compliance not only brings with it monetary consequences or economic costs to companies, since non-compliance leads to the payment of fines and interest and at one extreme can constitute a tax crime (when the payment of taxes is intentionally eliminated or minimized). taxes).
It also brings with it reputational risk, since being allegedly identified as a tax non-compliant and even more so as a tax delinquent, can lead to economic losses or simply business death, since clients or suppliers might stop having business relationships with the firm. pointed out.
Currently, compliance with tax laws is a tortuous path for taxpayers, since being able to pay taxes in the manner and on time so as not to be sanctioned by the Tax Administration entails endless formalities established by the Superintendence of Tax Administration (SAT), which holds tax power by legal mandate and is obliged to demand payment of taxes and report to the competent authorities evidence of the commission of tax crimes.
In this sense, companies must seek tax advice from ethical and suitable professionals who will help them prevent tax risks (administrative and criminal) and with this search for the tax advisor who will manage the company’s taxes, Tax Compliance begins, since at At the time of contracting professional (tax) services, the company must ensure that said advisors have sufficient tax knowledge and expertise.
How to prepare the Tax Compliance Program
The plan to be worked on takes into account the requirements to implement a Tax Compliance system that allows the prevention and detection of tax risks through a risk map, establishing principles and values of ethics and fiscal transparency.
The document is pertinent in all types of companies or individual or legal persons, non-profit entities and liberal professionals who are not merchants, such as keeping accounting -when applicable-, book records of purchases and sales, filing tax returns, preparing withholdings, issue invoices, credit and debit notes, advance payment receipts, etc.) and materials (payment of taxes -when applicable-); regardless of their size, whether they are classified as large, medium or regional special taxpayers; normal or small taxpayers, since everyone has the same obligation to contribute in a manner and on time.
Minimum requirements
The minimum requirements that a company must consider for the implementation of a Compliance Program are:
- Company context.
- Risk map.
- Preventive measures.
- Complaints channel and disciplinary system.
- Tax Compliance Policies.
To carry out an effective Tax Compliance Program, and not just a compliance makeup, an exhaustive analysis of the context and environment of the company to be analyzed must be carried out, verifying: Size and structure of the organization, locations and headquarters, nature of activities, entities where it exercises control, members of the organization and business partners, legal, contractual or professional obligations and commitments, tax strategies and administrative body, national and international tax legal framework applicable to the organization, structure of responsibilities, commercial legal type of the organization.
Also the delegation of powers, relationship with the public and private sector, relationship with non-profit associations, international business, structure of governing and administrative bodies, properties, shareholders or partners, management bodies and committees, and hierarchy level. By carrying out this analysis we can establish the “tax risk map” that may affect the company.
Control and prevention measures
There are many tax risk control and prevention measures (based on the tax risk map) and some measures that taxpayers can consider are:
- Tax Calendar: You must establish which formal and material obligations affect the company and the dates for their compliance, and must alert the person in charge of filing and paying taxes (tax advisor, tax compliance officer or person in charge of tax management) with prior to their expiration.
- Integrated Verifier: Digital tax tool that the SAT makes available to taxpayers to verify that their supplier or service provider is solvent, or that the document issued to them is authorized by said entity.
- Supplier Code: Request for a due diligence form with public legal documents to guarantee its existence (RTU, Commercial and Company Patents, others).
- Fiscal Solvency: Every supplier or service provider must present this certificate.
Expected benefits
The advantages of implementing a Tax Compliance Program within companies are:
- Reduction of tax costs: In the event of possible tax non-compliance by taxpayers, non-compliance entails the payment of taxes plus the respective sanctions (fines and interest), as well as the payment of tax litigation professionals.
- Better image and reputation: The tax compliant is seen better in society compared to the non-compliant or worse still, in the image of an alleged tax criminal. In other countries, there are “certifications of compliant taxpayers”, in our case (Guatemala), the Tax Administration, at the request of the taxpayer, issues the Fiscal Solvency, which does not exempt the taxpayer from the powers conferred by the law on the Administration. Tax, it can verify whether it has actually been complied with adequately.
- Proof of willingness to comply: It can serve as a mitigating or exoneration in a criminal tax process (in the administrative sphere, the taxpayer is responsible for compliance with his or her tax obligations; in addition, the tax code establishes that the taxpayers of the tax obligation will be responsible before the Tax Administration for the acts or omissions of its dependent personnel, in the exercise of their position).
That is to say, in the administrative sphere, there is no mitigation of responsibility in the event of non-compliance and hence the importance of having the described plan every year.
In conclusion, tax obligations are increasingly numerous, complex and demanding, with greater risks of tax non-compliance. The culture of Tax Compliance is an objective that organizations currently seek and implement; Therefore, in essence it seeks correct compliance with tax regulations, to avoid problems or litigation with the Tax Administration that entails unnecessary tax costs and, at the extreme, criminal tax sanctions.
With information from MSc. Walfred Corado, Tax and Business Coach. Director of Taxes and Transfer Pricing at Expertos Tributarios, SA
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