Unpaid Foreign Taxes Can Create An Expense Report Compliance Nightmare

Unpaid Foreign Taxes Can Create An Expense Report Compliance Nightmare

Unpaid Foreign Taxes Can Create An Expense Report Compliance NightmareBusiness travelers from Canadian businesses are crisscrossing the globe at an unprecedented rate. Canadian business travelers cover millions of aerial miles each year. There are Canadian businesses with partnerships and corporate sites all around the world.

All in all, the “expense report” is showing more Canadian business travel all the time.

While Canadian businesses have frequently partnered with other Commonwealth countries in the past, they are now going further afield to look for opportunities. The result has been a growth of Canadian involvement in emerging and growing markets.

 

Let’s look at some of the terrific opportunities out there for Canadian businesses:

— Although China’s growth has slowed, it represents a booming new market for many products.
— Many European Union countries have long standing ties to Canada and eagerly seek its goods.
— Smaller “Tiger” economies throughout Southeast Asia are steadily consuming more each year.
— A large number of U.S. firms are keen to build relationships with Canadian counterparts.

With all these factors in mind, it’s easy to let something like compliance slip in the excitement. However, if a travel expense report isn’t accurate, you could quickly find yourself in bad stead with your would-be business associates.

 

Global Compliance Requires A World Class Solution

Generally speaking, if you do only a limited amount of travel within a country, you may not need to pay sales tax or various other taxes at all. However, there are exceptions — business travelers should document everything they can.

If a Canadian business traveler is perceived as abusing the good will of a host country, he or she could have compliance issues — but just as importantly, the problem could bloom into one that threatens the back and forth rapport critical to global business.

To make things easier, it’s a good idea to empower business travelers with a centralised means of ensuring compliance worldwide. Using new tools, it is now possible to submit key information for a travel expense report to the “home office” immediately.

Not only does this support the domestic compliance efforts that are so important, but it can help ensure that your key decision makers are always welcome in the countries that may well become their second homes.

Strengthen your global compliance regime with quality expense report software for travel — so you can focus on building bridges around the world.