It is clear that there is a difference between avoiding tax and evading tax. In essence, one is rather legally acceptable. On the other hand, the other is a total offence and somewhat punishable. Unfortunately, many consultants do not understand this difference. Moreover, they fail to comprehend the planning aspects of the tax policies. For that reason, it has become important for experienced business professionals to focus on disintegrating tax policies and the manner in which they work especially for entrepreneurs. Other than that, there is a clear indication that in most countries, taxes have a direct negative impact on how businesses are managed. In Brazil for instance, tax burdens have majorly contributed to the evasion of taxes especially by entrepreneurs. Consequently, Flavio Maluf, a businessman, has decided to address the issue and ask the government to chip into the tax incentive issues.
Income tax is the governments’ most prominent source of funds. It is also true that in a recent comparative report, income tax was more preferred by the government as it touches on tangible items like land, property, ships, commodities and physical goods. However, income tax is also slightly too expensive for entrepreneurs as it eats into their profits thereby making it rather complicated for them to maintain healthy businesses. Therefore, Maluf is trying to urge the government to create an incentive plan for entrepreneurs as they need a better idea to cut off significant taxes on their businesses. View crunchbase.com to learn more
Why the Tax Incentive?
The tax incentive is not an allowance for entrepreneurs to evade taxes. Instead, it is a chance for them to accumulate the funds to different projects. For example, Maluf states that the extra amounts that usually go to the government can be spent on various projects that will, in turn, help the society. He breaks it down by stating that these funds can be channeled to sports, healthcare facilities and even other businesses. It is only right for the Brazilian government to focus on the implementation of these taxes.
More on FlavioMaluf
Maluf is one of the most admired entrepreneurs in Brazil. First starting off his career in Eucatex Group, he established a reliable working relationship between his company and significant economic shakers. As of now, he offers advice to business professionals and their employees with the hope of impacting their sources of income. Regarding the tax incentives for entrepreneurs, he hopes that the government intervenes. View: http://blogdoronco.blogspot.com/2014/05/empresario-flavio-maluf-prestigia.html