Firms are finding it hard to survive due to the high taxes. In Brazil for instance, the tax rates are very high and companies have to spend huge amounts of money paying them. As a result, they are not i a position to carry out other beneficial activities in or outside the company.
According to Flavio Maluf, there are certain things that can be done to ease the financial burden posed to organizations by taxes. This can be achieved through the Fiscal Incentive Laws. According to these laws, firms can use the money they spend paying taxes to carry out other activities that can benefit the society. For instance, the money can be used to conduct research to find out about the ways through which a societal problem can be solved. The finances can also be used to carry out community development projects. See more on Wikipedia.
Therefore, the idea is to make proper use of the money. However, this does not mean that the amount of money spent on taxes by a company will reduce. It means that the same amount will be used on these other activities. This strategy is very beneficial for firms. Even though the tax burdens will not be reduced, at least they will be in a position to create an excellent reputation to the public. For instance, if a company comes up with a project to uplift the community, the public will get the perception that the company is also concerned about their well-being. People love associating with such companies, and this can result to increase in sales for the company. To benefit from incentive laws, firms must be willing to adhere to the terms such as the fact that they are taxed based on the real profit.
Flavio Maluf is a renowned businessman and the Chief Executive Officer of Eucatex. He has a degree in Mechanical Engineering. He took over the business as President in 1997. He has extensive knowledge about entrepreneurship and he urges people to be committed towards what they do. Even though he was born and raised in a very wealthy family, Flavio Maluf has worked extremely hard to become successful.