The benefits for your business of tax compliance in China.
You will often hear businesses complain worldwide about having to pay taxes. Yet, these same business enterprises similarly complain if the infrastructure in any particular country isn’t what they are used to. You cannot have your cake and eat it as they say, so every business should be paying their fair share of taxes that helps them and help employees. Tax laws are in place to make sure that everyone does their bit for the economy and that everyone gets to enjoy all of the spoils. If your business is successful in a country other than your own, then it seems logical that you would want to contribute to the very government that gave you the opportunity in the first place. Trying to avoid taxes or finding ways around tax using legal loopholes is not the ethical thing to do.
There are some tax compliance services in China that allow you to stay on the right side of the law, and so you get to avoid having to pay additional tax and penalties because you didn’t submit your taxes on time or didn’t offer them in full. It is important that you know and understand that if you fail to pay your business taxes, then you will be subject to fines, prosecution, and even prison, depending on what you have done to avoid paying taxes in the first place. It is easy to avoid such penalties if you are tax compliant. The following are some of the costs associated if your business is non-compliant when it comes to its taxes.
– It wastes time – Time is money, as they say, and so if you are going out of your way to try to avoid paying your necessary business taxes, then you’re wasting not only your time but other people’s time as well. A government official will likely audit you, and it takes time to go through all of your books to find out if you are compliant or not. This means that your business may suffer as a direct result as they may ask you to cease trading until such times as they can make your business tax compliant. One of the qualities of becoming successful in business is paying your taxes.
– The business image is damaged – Everything nowadays is about creating good impressions and improving upon your business brand. You are doing neither of these things if you are avoiding paying your taxes, so the image of your business might be irreparably damaged. Customers will judge you on how you have conducted yourself. So if they see your business in a negative light, they will reward you by no longer using your products and services, which may result in having to close your business altogether.
It makes no sense to be compliant with your taxes, and you will incur high collection costs and legal fees if you do so. There will also be extra costs in additional tax, and any government penalties may affect your cash flow.