Formal duties and financial autonomy of local territories

The local territories with their different administrative denominations have had financial autonomy, a faculty that has allowed them to develop mechanisms to obtain resources, through legal ordinances that allow them to promote social and economic development as established at a normative level in the different constitutions of the sovereign states.

Therefore, local public administrations are framed under the search for an adequate tax collection system, taking into account a set of instruments and measures that allow them to maximize the collection of tax revenues.

Consequently, these actions require that taxpayers develop their economic activities aligned to the administrative strategic planning and control; therefore, companies must have all the processes that guarantee in a continuous way.

As well as the efficient fulfillment of formal duties and the generation of the necessary information to design internal measures that contribute to avoid, as far as possible, being affected by the application of penalties that may affect their financial equilibrium.

In view of these statements, the impact of the tax on the economic activities of industry, commerce, services or of a similar nature on the economic stability of the companies located in the local territories must be analyzed.