Fines in your business, a risk that cannot be ignored

There are many factors that can put a company's livelihood at risk; from mismanagement, lack of innovation and updating, to significant fines and debts.

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Unfortunately, at the firm we have witnessed many cases in which a fine or a legal problem escalates to such an extent that it puts the company's livelihood at risk, which is why it is extremely important to know how these types of acts can affect us and of course, how to prevent them.

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This time we will talk about the danger of fines. Companies are subject to fines basically for non-compliance with their obligations, whether from the fiscal sphere to a more specific one, such as environmental, economic, health, among others; it will depend a lot on the company's activity.

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Well, we may believe that the fine is nothing more than an economic sanction, but the reality is that it can have much more serious consequences, such as the suspension or closure of establishments, the revocation of authorizations and even the seizure of assets and bank accounts.

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Let's imagine that for not paying a fine in a timely manner, the tax authority orders the seizure of the company's bank accounts, making it impossible to pay suppliers and worse yet, its employees.

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Or, as a result of a sanction, the authority revokes an authorization from the company without which it cannot carry out its activities legally, so it must stop its operations, even for a few days; however, such a situation would represent a much greater economic loss than the fine itself.

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Even if a company has unpaid fines, it will be prevented from endorsing its establishment's drawing license, making it extremely vulnerable to any visit by the authority and, in addition, it will not be able to legally exploit the money order.

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Now, this does not mean that a fine represents the loss of the company, rather, if it is not addressed in time, the consequences of such an omission are those that will bankrupt the business.

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And how should these types of sanctions be addressed? The right thing to do is, first, to approach a specialist in the field, to determine specifically what type of fine it is, the reasons for its imposition, the authority that issued it and other details. Having established that, the strategy to be followed must be defined, whether it is the interposition of a means of defense, some type of procedure before the authority or even a negotiation with it.

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The point here is that there are alternatives to mitigate the problem, and that they must always be addressed in time, before irreversible consequences are reached.

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If your company was fined or you have any problems with the authorities, don't worry, with us you'll find the support you need. Contact us! 🙌🏼