Friday, 28 June 2013

Financial Compliance

After a week’s hiatus, I came back to do what I do best. Talk and share with you guys. Of course the vacation had left me in a phlegmatic state; but after realising the expenses I’ve had, last week, I got instantly on my toes.

More so, in all this frenzy, the tax filing completely slipped out of my mind. Back home, on returning, I was merrily greeted with the tax penalty letter, stating I crossed the due date by a week. Why do I always need to “appreciate financial compliance” after I have emptied my pockets?!

Most would be empathizing with me, for no proper tax planning. And I guess this scenario is pretty much the same over the world. That said and done, what about the other numerous monetary liabilities obliged on everyone. Almost everyone! And if not paid in due time, they incur additional penalties. Empty pockets all over again!!

That was just a micro level anecdote. I am presuming the case is more complex at a macro level - at a Company level. In times of receding economies, the business pages are all stuffed with various upcoming economic policies and regulations. It’s a cut throat competition to keep your financial compliances intact. A race that’s too long to keep running. Locally, this race is still picking its pace. But it won’t be too far when everyone would have upped their ante.

Most have already got in shape. Many are following suit. Where are you? Are you financially compliant too? I know of a company that had to pay gallons when the Compliance Officer locked horns with them. The newspapers are full of such stories.

Unethical practices like money laundering and tax evading have caused the emergence of financial regulations and compliances. I don’t mean to be a moral police here, but hey why do something that’ll get you in trouble. Money doesn’t always come the hard way.

Where India too has joined the international brigade of regulators, some of the essential financial compliances are Basel III, FATCA, Sarbanes-Oxley and FEMA. And of course, XBRL! Weeks back I sorted the basics of it. All of this is a big circle with many smaller loops. And remember, a circle is always unending!!


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