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CEO’s Letter

SERVICES CONTEXT

Oscar Franco Charry

The economy is directed through policies such as:fiscal, monetary, exchange, price and trade. Specifically, fiscal policy includes decisions on the Budget (income, expenditure and borrowing), with an impact on production, employment and inflation, often being conditioned to other policies and interests, in the midst of a diffuse coordination between the responsible authorities.

In its income facet, tax policy has consented to a Tax System that is crammed with rules Constitution, laws, international treaties, jurisprudence, decrees, ordinances, agreements, resolutions and administrative doctrine, with a vast catalog of taxes (taxes, fees and contributions), with taxable subjects, taxable bases and improvised rates, linked to generating events of a very varied nature (income, expenditure, wealth, sales, consumption, transactions and even the company operation), some with withholding tax tools.

This system has been repeatedly questioned because it is inefficient, complex, unstable, regressive, inequitable, excessive, inhospitable for investment and consequently generates informality, high costs for compliance and control and subjectivity.

This is complemented by dense procedures with exuberant and expensive obstacles, visible in the multiplicity and redundancy of authorities, jurisdictions, controls, records, reports, requirements and with frequent penalties, coupled with an unusual institutional backwardness, among others. In addition, there are coexisting related regimes (parafiscal, foreign exchange, customs, foreign trade, prevention of money laundering, environmental, intellectual property, state and labor contracts, among others), with equivalent complexities, high compliance costs and heavy penalties.

Facing all of the above, the Businessman appears. For whom the proper responsibilities of that praiseworthy condition of investor, strategist, worker, employer and merchant, seem irrelevant to the colossal economic and administrative burden that dully absorbs and discourages it, surpassing its capacity for control.

The Punto Franco Consulting Services visibly strengthen the Businessman’s ability, in the Global Context in which he interacts, to control taxes and other related obligations, managing information, opportunities and risks concerning its heritage, competitiveness and reputation.