Generally, tax compliance and tax advisory will be provided as separate services. In short run, this may help to reduce the burden on SME for tax compliance. However, this division may widen the gap on perceived service coverage between SME entrepreneurs and tax service providers. In long run, both parties are at the losing end because of incomplete service spectrum.
Consequently, the following problems may happen
- SME entrepreneurs may fail to utilize Government’s tax incentive in the absence of consistent tax advisory services.
- Tax service providers who believe in “cost down approach” may find it difficult to provide sufficient quality service to clients in long run.
- Tax compliance without consideration on other perspectives (i.e. Accounting, GST, Audit and Company Law) will not be enough to help SME entrepreneurs to success.
- SME entrepreneurs may pay higher tax due to outdated tax information. For example tax compliance is based on outdated tax law.
- SME entrepreneurs may pay tax penalties due to outdated tax information. For example profit understated because of applying previous tax law.
- Higher tax and/or tax penalties may affect the cash flows of businesses. This indirectly will increase cost of capital.
- SME entrepreneurs may spend their precious time on tax failures instead of business expansion. Consequently, your competitor may be moving ahead / you may spend lesser time with your family.
- SME entrepreneurs may facing the surprise that the company’s profit is not enough to cover tax amount due to poor tax information.
Teh & Partners and its associate firms believe that tax compliance and tax advisory are inseparable to deliver quality tax services in today’s complex and ever-changing tax landscape. SME entrepreneurs should recognise the impacts of ineffective tax service on its operation costs, branding, cash flows and credit profile. All these impacts may affect SME either directly or indirectly.
We promote a new approach for tax management and put an end to traditional hide-and-seek and after-event approaches. We are always transparent in revealing to you the hidden costs for the above mentioned traditional approaches.
Don't Be Shy
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