It is well known that business managing necessary includes tax risks managing. Especially it is noticeable in conditions of effectually high tax burden in running business, as it like in Rep. of Croatia. Business managing is in the function of long-term optimal security and efficiency by creating certain economics, market and financial effects. According to fact that financial effects directly increase efficiencies through maximum net cash flows after taxation, it is necessary to appear a need for identification of tax risks, theirs meanings and managing possible tax effects regarding maximum of net cash flows as gain function.
Tax liabilities are material segment of total liabilities and cash expenditures of the entity. Their value and dynamics are determined not only by running business but also directly with legislation framework, its changes and application. Every deferred tax paying (purposely or not), in general, creates risk of sensibly performance decrease directly through appearance of extra expenditures (penalty interests, cash penalties etc.), but also indirectly though proscribed the highest priority level of fulfilling those extra expenditures in conditions of insolvency.
This priority, frequent periods of tax liabilities occurrence and their material value often and short-term periods of financial instability turn into permanent illiquidity and economic stagnation. Omissions and mistakes regarding to taxes, in general, have for result direct decrease or impade increase of economic performance. That extra justify investment in organized tax risks managing.
Management interest for tax risks managing is not just to avoid penalties for offences, but also in scope of legal possibilities pay the minimum possibly tax and to defer tax paying as much as possible.
Organized tax managing means systematically and continuously business’s monitoring in a part that is related to accurate and in due time calculation and paying all types of taxes. Actually it means in a long-term and at reliable approach properly secure tax legislation framework application. Because of it we are glad to recommend permanent business cooperation with Office of The Certified Tax Advisors Javorović, Idžojtić & partners.