Importance of Corporate Compliance Services
The act of monitoring a company’s corporate compliance program has long been looked upon as an integral aspect of the director’s oversight responsibilities. An efficient program can minimize several threats that a company might be facing. It also helps in minimizing severe claims and penalties when there is a law violation despite a compliance program. At the same time, it improves the company performance and profitability. Contrarily, a poor compliance program can lead to increased liabilities, adverse management distractions and negative publicity. In a nutshell, directors must consider their oversight compliance activities as one of the highest priority item in their agenda.
The mission of most corporate compliance services is to help users and clients to efficiently handle their management concerns. To this effect, they offer investigative and consulting services as they are able to relate to the modern day complex regulatory environment. A group of highly educated, knowledgeable and experience professionals works towards offering forensic book keeping, taxation and financial investigative services in a systematic way.
Many companies dealing in corporate tax preparation solutions too today offer corporate compliance and helps users to identify law violations by employees, communities, investors, lenders, officers, agents, business directors, financers and effectively prevent them. Majority of corporate fraud investigations are joint efforts involving numerous federal agencies. These services also help in attaining a robust corporate management philosophy.
Any law violation would result in penalties. Some of them are in the form of:-
- Imprisonment
- Payback taxes with interests
- Fines
- Restitution
- Sanctions
- Forfeits lands/homes/vehicles/certain artwork,
- Corporate probation
For American citizens as well as other the IRS Act made provisions in the law that holds corporate officers responsible for the content of their corporation’s financial statements, income tax returns and their relating to the handling of corporate records. This Act imposes stricter sentences up to twenty years of imprisonment for the alteration, destruction and falsification of records done to obstruct bankruptcies and federal investigations.
The reasons for corporate compliance can be because of the following reasons:-
- Mail Fraud
- Corruption
- Tax evasion i.e. illegally averting paying taxes, inaccurately reporting and failing to report
- Conspiracy
- Embezzlement i.e. dishonestly secreting or appropriating assets.
- Keeping accounts in two separate banks but only reporting one account to IRS.
Hence, without a systematic corporate compliance program your home, business, personal investments and every other thing that you intend to safeguard, might be taken off overnight. In front of law, it hardly matters if you are the main person amongst your board of directors, or the only efficient employee. Huge MNC’s as well as small held firms are equally held up for legal obligations. In fact, it gets critical if you highlight separation between you and the company. Therefore, it is essential to regulate and adhere to the compliance services fully.
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