Why Companies should be proactive in Managing Taxation
Tax is a word a lot of hardworking, otherwise law abiding citizens love to hate. It is also the oldest symbol of subjugation to a central authority. The Oxford Advanced Learner's Dictionary defines Tax as “money that you have to pay to the government so that it can pay for public services”. In our clime however, it may be comforting to know that tax is money that YOU HAVE TO PAY to the government. Since the emergence of the modern corporation, public finances have grown in tandem with the growth in Revenue base of the modern corporation. States have created increasingly complex tax compliance and reporting requirements for the corporation to guarantee a steady flow of income.
Of these characteristics, delegated management is the most cardinal to the
modern corporation. In exercise of delegated management, ownership is more often than not separated from management such that the investors in business effectively outsource the day to day business of the corporation to professional managers who are hired or fired for their performance. To the shareholder, performance by any corporation would be measured by how much his/her wealth is maximized. Shareholder wealth maximization connotes different things to different people but ultimately, the watch word is that value is created and adequate returns is made to investors.
Discerning companies have recognized the extra savings and direct contribution to shareholders’ value that can accrue from carefully managing and planning the tax process.
We assist companies in managing transaction taxes especially withholding taxes. We help to structure transactions to optimize the applicable rates. We follow up to obtain the related tax credits and refunds. We also assist in managing the company's tax position records with the Revenue.
We assist companies undertake self reviews of their tax compliance, either pre statutory audit or pre-Revenue authority audit. “No surprises” that is what we help the finance team achieve before major events such as audits or an acquisition or merger.
We advise our clients not to write off their WHT receivables. We follow up with our clients’ customers to obtain the original WHT certificates (this process could be onerous in Nigeria), and help our clients use the tax certificates obtained in lieu of cash to reduce the corporate tax payable.
We assist management in handling their payroll function for both local and expatriate employees.
We assist with the whole range of employee tax compliance and statutory filing of returns.
We prepare companies for external income tax audits and assist them during and after the audit. We help companies to optimize employment contracts with respect to income tax, restructuring employee pay for tax efficiency. We advise on flexible remuneration systems.
We provide unequalled expatriate solutions to our clients and prospects as well.
Our Responsiveness Stransact Partners are known for their timely advice in considering and delivering Value. We dedicate all our resources to the particular situation, doing whatever is ethically possible to ensure that value is realized for our client.
The following are some of the most common benefits of outsourcing payroll:
Expert Service : Hiring a Payroll Services bureau provides the reassurance that comes with hiring a professional. Payroll computations can be complicated to keep track of. For example, errors in tax calculations can result in costly penalties and fees for your business and your employees. As a payroll service provider, we make accurate calculations and would often have the skill set required to interface with the tax authorities. Also, when you outsource your firm’s payroll to knowledgeable professionals like us, your management would have no great need to keep up with the changes in local, state and federal laws that affect payroll. We, as payroll service provider assume this burden for your organization.
Saving money and time: The more time a business spends on its payroll processes, the less time it spends on its core business. Payroll processing is a time consuming process / task. Outsourcing your payroll services to us frees up your company's time to be used in production and marketing of your products. Typically, a payroll company can perform calculations and generate reports much faster because they have years of experience and knowledgeable staff. Performing your own payroll processing functions will take more time and it is more likely to result in more mistakes than outsourcing. Outsourcing to us is a great way to save money and time. By focusing on what you do best and leaving the rest to our team of professionals, you can devote more time to growing and managing your business.
Avoid Internal Revenue Service Penalties: Typically, the IRS in Nigeria seek to impose penalty at a flat rate of 10% and interest at the prevailing commercial rate which could be up to 22% per year for late or incorrect filings. Most payroll services bureau provides a tax guarantee, ensuring that customers will incur no penalties because the provider takes
responsibility for penalties when they do occur. Such guaranty would however be dependent on the level of compliance in the payroll structure. In many instances, this cost-saving immediately justifies outsourcing your payroll to us.
Avoid Technology Headaches: A constant question for business owners is whether they have the right payroll software or ERP and the most recent tax tables installed on their computer. Using the wrong tax tables can result in stiff penalties. Outsourcing payroll removes those headaches and keeps payroll running smoothly.
Business Risk: If your in-house payroll processor gets a new job, they will leave with all their knowledge of the payroll process. Using an outside service like us eliminates such business risk.
We assist in resolving tax disputes with various Revenue authorities including Federal and State Governments. We have capacity to support our clients throughout the various appeal processes and stages.
Many company's tax or finance departments are often faced with severe restraints on capacity, while simultaneously facing increasingly complex compliance and project requirements. Stransact's talented tax team can assist with managing your tax responsibility while the finance function of
the company focuses on other tasks. No matter the nature of the project, whether responding with a protracted tax dispute or permanently performing a discrete function, Stransact's professionals will work directly with you to solve your resource need.
Prefer to speak to Stransact Partners directly?
Click here to find the contact details of our office nearest to you