Efficient management depends on effective tax policies and procedures

Friends and readers of my blog, the fact that there are formally policies or procedures within the company does not mean that they are operating effectively, in this perspective, internal control comprises the policies, procedures, practices and structures designed to provide reasonable confidence that business objectives will be achieved and that undesirable events will be prevented or detected and corrected.

Hence, the relevance of its dissemination and openness to adaptation, improvement and innovation, since it describes the mechanisms used to ensure that the accounting and performance processes are complied with as established by the company and also constitutes an indispensable aid for efficient management.

Internal control is broadly defined as a process performed by the board of directors, managers and other personnel of the entity, designed to provide reasonable assurance regarding the achievement of objectives, internal control consists of five interrelated components, derived from the way management conducts business, and are integrated into the management process.

These components are: control environment, risk assessment, control activities, information and communication and monitoring. In this context, the subject of formal duties arises in the area of value added tax, which involves the declaration and timely payment of the percentage generated by the sale of a product or service, which translates into a payment commitment by the taxpayer to ensure compliance with the material obligation or payment of the tax.

The Value Added Tax is a tax levied on the sale of personal property, the rendering of services and the importation of goods that applies throughout the national territory and must be paid by individuals or legal entities, communities, irregular or de facto companies, consortiums and other public or private legal or economic entities.