Humans compressed over 2 streets.
“No no,” my friends. I want to say, “Let’s talk about TAX in the boardrooms.”
Recently a student asked me some questions on how to apply GST on the transactions that she has to invoice.
Not sure where she is in her company’s management hierarchy. The fact that she is asking questions should be a comforting plus to her boss. Incorrect GST application not only invite unnecessary attention from the authority but may incur financial loss in the form of fines, penalty and manhours to remedy. A 5%-mistake (and soon a 7%) will really eat into your margin. Customer goodwill may be eroded too.
The directors of a computer gaming developer startup were grilling me on the tax implications of some corporate moves that they are considering.
In the past, tax matters were considered private, too technical for the laymen – it was something the tax department or someone from the auditor’s office dealt with, with the tax authorities.
What is the price of not talking about tax in the boardroom?
- Without good tax management, you will not be considered a good boy ie. a company with good corporate governance; and
- You will not have the strength & depth to venture overseas and hold yourself up to the sometimes different standards in other jurisdictions.
If you don’t about tax in the boardroom, what do you guys actually talk about? [wink.. wink..]