As part of the protocol for engaging in business activities in a particular country, it is often in the best interest of business entities to be compliant with tax laws as this goes a long way to influence their credibility and cooperate image both locally and globally.
A truly credible company adheres to tax and statutory filing procedures as per the laws of the country in which it operates, in order to prevent interference from law enforcement agencies and accrue penalties. The process of keeping track of the taxes and other payable contributions can be quite elusive and often requires the expertise of a tax specialist to ensure that things are properly done.
The challenge identified in this case just as above stated was keeping track of tax payment and maintaining compliance in all countries that the firm engaged in business.
