What measures should the company take to avoid falling into the fine mesh?
Learn how to implement appropriate practices in your company to avoid inconveniences with the tax authorities and ensure tax compliance.
In the business world, keeping your company compliant with tax law is essential to avoid unnecessary problems and guarantee your success. To do this, it is important that your company adopts appropriate preventative measures to avoid falling foul of the tax authorities. In this article, we'll explore some of the main measures to ensure tax compliance and keep your business running smoothly.
What is the fine mesh?
The term "fine mesh" is used to refer to all the procedures for inconsistencies or errors in your company's income tax return. This assessment involves cross-referencing the taxpayer's financial transactions with the data of all the organizations with which they did business.
It is therefore important for small, medium and large companies to be careful in their accounting practices. A company can be caught in the fine mesh for any number of reasons, from filling in the form incorrectly, to leaving out information or what was declared not matching what was recorded in the establishments in question.
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Why does a company fall into the fine mesh?
The system is designed to reduce fraud, so a company can fall into the fine mesh for various activities that contain the risk of fraudulent activities, and guaranteeing the role of the fine mesh is to ensure the accuracy of all declarations made to the company. Receita Federal.
Once a tax return has been filed, the tax agency checks the data against other sources, such as financial institutions and health insurance plans. If any discrepancies are revealed, the declaration goes through a more detailed examination, which is also called a tax loophole.
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But what are the consequences of falling intothe fine mesh?
If your company falls foul of the fine mesh, you could suffer many losses, such as:
- -Problems with the CNPJ;
- -Payment of fines;
- -Being investigated for tax evasion.
It is therefore essential to take the necessary steps to ensure that your company does not fall prey to the lion's share of the Receita Federal.
Know your fiscal and tax obligations
The first step to keeping out of the eyes of the tax authorities is to fully understand your financial responsibilities. This includes being familiar with all relevant tax obligations, such as income taxes, VAT, personal property taxes and other taxes specific to your industry or region. Also, make sure you understand the regulations relating to payroll, accounting e financial reports.
Your company's tax obligations are many and varied:
Tax collection;
DIRF - Withholding Tax Return;
DEFIS - Socioeconomic and Tax Information Statement;
ECF - Tax bookkeeping;
Issuing invoices.
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Proper maintenance of documentation
By keeping accurate and up-to-date records, you facilitate the auditing process and reduce the risk of errors or omissions in the tax return. Make sure you store all receipts, invoices, bills and other relevant documents in a safe and organized place. Also, consider using online management systems to automate this process and ensure greater security when dealing with sensitive information.
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Implementation of tax compliance policies
Create clear internal policies to ensure that all employees are aware of their tax obligations. These policies can include procedures for recording expenses, managing income, keeping financial records and meeting deadlines related to tax returns. Also, ensure that all employees have adequate training on these procedures and understand their importance in the company's tax compliance.
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Regular internal audits
Periodic audits can help you identify and correct any problems before the tax authorities make their next inspection. These audits can be carried out by an internal department or by an external professional specializing in accounting and taxation. The aim is to check for errors in financial records, omissions in tax returns or any other irregularity that could lead to further investigation by the tax authorities.
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Establish an open line of communication with the tax authorities
Maintain good relations with the tax authorities by establishing an open line of communication. This may involve maintaining regular contact with your local or regional representatives and being aware of changes in tax laws or regulations that may affect your company. In addition, if you are aware of any irregularities or errors in your previous returns, it is advisable to address these issues proactively to demonstrate your commitment to complying with all legal obligations.
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Minimize risks and avoid the lion
In short, keeping your company away from the eyes of the tax authorities requires a combination of knowledge, organization, discipline and communication. By implementing preventive measures such as those mentioned above, you can minimize your risks and ensure that your business continues to thrive without unnecessary problems.
In CLM ControllerWe offer all the support you need to help your company avoid the fine mesh. Our team of experts in accounting and taxation is prepared to guide you and implement the best tax practices, ensuring that all obligations are fulfilled correctly and within the established deadlines. You can count on us to keep your finances in order and avoid any complications with the IRS.
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