While carrying out their business activities, numerous legal issues arise for the entrepreneur, and with these issues come their legal rules, such as ordinary laws, supplementary laws, decree-laws, normative instructions, resolutions, ordinances, among others.
As a result, it's essential that a company adopts tools that helps it comply with national laws, as well as those regarding Tax Law. In this sense, it's crucial to study and adopt organizational methods and policies, in order to keep the company within the standards and rules, alerting the entrepreneur from possible risks to the development of their business and making the company more competitive in the market.
Compliance is widely used in the corporate environment, having become increasingly important for companies
For Tax Law context, Compliance means the assembly of activities that seek to adhere and follow with tax legislation and also with the legislation itself, which encompasses both main tax obligations (appropriate payment of taxes) and ancillary tax obligations (taxpayer report of economic activities, as well as the means of quantification and payment of their taxes).
Among the activities arising from Tax Compliance, we can highlight the preparation of tax calculation memories, issuance of invoices and recording of economic facts in the accounting books, payment of taxes duly and within the due date, control of tax credits in refund requests or Compensation Declaration.
Compliance assumes an important position for company's organization as it demonstrates transparency of its actions, providing credibility to the market and the tax authorities.
Moreover, with tax compliance within a company's organizational system, some benefits may be acquired by the company, such as discounts on credit lines, different treatment in assessments and priority in reimbursement queue through national tax programs.
Thus, there is no doubt about the importance of companies adopting Tax Compliance programs, in order to ensure security to taxpayer and manage tax contingencies through risk assessment.