Success in life, individually and as a corporate, is more a factor of character than any other driver. And one of ways good character manifests is through integrity and excellence.
Nowhere is this more evident than in an individual or corporate level of tax compliance. Most business collapses typically have significant unpaid tax liabilities as one of the reasons.
In my opinion, tax compliance reveals most of the traits of excellence in an individual and a corporate even above integrity. I say this because it takes a lot of conscientiousness to be tax compliant and the pursuit of excellence is what makes our conscientiousness.
Now, in order to be tax compliant, one needs a good system for record-keeping, an effort made to understand tax law and apply it correctly and most importantly a business that is working well and transparent.
All these are likely to be consistent across the business’ customer interactions which are the ultimate determinant of sustainable and profitable business growth.
It is based on the above that I am of the view that the government’s “fiscal stimulus” program, however well-intentioned, is likely to fail especially if the beneficiaries were not tax compliant before receiving the “stimulus”.
Because an SME or individual who has not been tax compliant likely lacks the qualities needed to succeed and pay back these funds meaning these are monies being effectively being sub-optimally deployed further worsening our economic woes.
If the government is sincere about its intentions to give businesses a helping hand, making the effort to ensure that tax compliant individuals and corporates are the ones who benefit is a SINE QUA NON for the effectiveness of the stimulus.
