In the not too distant past, the number and complexity of the various types of taxes levied were much lower than today, and complying with the tax laws was hence a much simpler task. The general global trend in recent years of decreasing income tax rates has caused governments around the world to implement a plethora of new taxes, levies, charges, contributions or whatever they choose to call them in order to replace the resultant lost revenues. As a result, complying with these laws requires much more effort, time and knowledge, and the risk of non-compliance has increased significantly.
Traditionally, many businesses operated in one jurisdiction, requiring their advisors to have expertise only in that particular jurisdiction. However, in today’s shrinking world even the smallest of businesses often operates in multiple jurisdictions, and hence businesses of all sizes require advisors with global reach in order to ensure compliance with the sometimes mind-boggling array of taxation-type obligations to which they are subject.
Aside from personal and corporate income taxes, with which we are all familiar, businesses in today’s environment are often subject to many other “taxes”, including but not limited to:
- Social security taxes
- State / provincial and municipal income taxes
- Land transfer taxes / stamp tax
- Real estate taxes
- Sales taxes (federal, state / provincial, and or local), VAT
- National pension plans
- Government “service fees” on issuance of permits, licenses etc.
- Estate taxes
- Capital tax
- Capital gains taxes
- Gift tax
- Indirect and other taxes such as importation, registration, transportation security, unemployment taxes, health insurance taxes, etc.
- Tax incentive programs
In addition to the various types of “taxes” imposed by the taxation authorities of countries across the globe, there are today a dizzying array of investment vehicles being made available to the average investor, some of which are very complex and sophisticated and which may, unbeknownst to the holder of a couple of units or shares, subject the holder to reporting requirements and/or taxes to be paid in the country in which the investment vehicle is based. Some examples of such an investment vehicle would be Real Estate Investment Trusts, hedge funds, income trusts, etc.
In many cases, the penalties for non-compliance can be severe. It is, therefore, imperative that businesses of all stripes obtain the appropriate advice so as to ensure they comply with the laws and avoid the penalties that non-compliance give rise to.
Nexia prides itself on the quality and expertise of the professionals employed by its member offices. Those firms chosen to be a part of Nexia are known for their expertise, experience and knowledge when it comes to all of the various tax-type levies charged in their jurisdictions, and they all have tried and tested systems in place to ensure their clients’ compliance with them.
All personal, corporate, trust and partnership returns, as well as all other tax forms and documents, are reviewed by highly qualified professionals before being released to ensure that they comply with all relevant rules and regulations. The professionals responsible for the compliance work go through rigorous initial training and are provided as well with continuing education on a regular basis to ensure that they are up-to-date with the current rules and regulations at all times. Nexia also performs periodic reviews of its member firms to ensure that the professionals employed by them are up to Nexia’s exacting standards.
When, as is often the case, a client is operating in multiple jurisdictions, Nexia member firms have at their disposal the expertise and experience of 14,000 professionals in 96 countries who have been subjected to the same exacting standards on which Nexia’s solid reputation has been built so that they can ensure that the advice that that client receives is provided by some of the foremost experts in the jurisdictions concerned.