Some time back, often I use to hear about “Globalisation” during meetings and personal interviews that, how the World is becoming a smaller place, now I believe that it has indeed became so in the current scenario when it is difficult for any professional or a businessman to work only locally without having or soon to have some kind of business or professional international opportunity.
If you are a business man, an employee within the tax or finance department of an organisation or you have your own practise, either you are already in or very soon be in any of the following situations.
I am heading a MNC
Wow, do you know, I am going to head a MNC. I am very good in administration, managing finance and internal controls since many years and I am also very good in sales. I have every quality to head a MNC but I still losing my confidence because, just because, I am not good enough in taxation and I am finding it very difficult to plan group transaction in a way that all resources can be utilised at their best optimal level with minimum or no tax effect.
I am planning to expand my business
I have a plan to expend my business in different geographical democracies. Funding, product planning, marketing strategy, logistics support, ͙. Everything is arranged but I still can’t decide whether my business will be profitable or the taxes will wipe out the surplus.
I am a practising Professional
Wow, I am a practitioner, doing practice since many years, recently I received an inquiry from one of my client that he is going to invest in foreign countries and he wants me to design his transaction. But I am not familiar with taxing system in different tax judiciaries so I am planning to share my profit with someone else or I have to deny my client.
I generally found that people are very afraid to hear the term “Taxation” either locally or globally and find it very difficult to understand it.
Imagine a quote for supply of materials without considering the local VAT!
Imagine a cash flow planning without considering the international withholding taxes!
Imagine budgeting for human resources without considering the personal taxes!
Yes you are absolutely correct it will go for a toss!!!
They can do whatever it takes but still fail and are allergic to taxation they find it difficult to manage it and in turn they are bound to schedule appointments with the tax consultants even for smallest matters.
Based on my observation and interaction with people of different nationalities made me think about doing something for easing out their problem, taxation is not witchcraft or some kind of black magic. It is very simple thing that can be understood. Even a layman can understand it and plan his cross border transaction by giving some time in understanding the basics of taxation.
So, I am pleased to present my first compendium on international taxation to a first step in understanding tax for the tax fearing people across the globe.