8th December 2017
If you ever wondered just how investigations into fraudulent activity could impact a company, take a look at Italian oil refinery firm, Eni.
Tax investigations risk shutdown
In reports last week, Eni claimed it was on the verge of shutting down operations in Italy following the seizure of assets as part of tax evasion investigations. It’s been alleged that the company had manipulated some of it’s measuring devices in order to reduce the number of product sales recorded and evade tax payments of around €10 million.
As such, the tax police seized the devices in question, preventing the firm from continuing with normal operations and putting several refineries and storage facilities at risk of closure.
While Eni has denied the allegations and charges have yet to be made, the firm is clearly facing serious concerns. It’s certainly safe to say, then, that fraud investigations alone can have a detrimental impact on a company’s day-today operations and profits. When you also consider the potential damage to a firm’s reputation – particularly at a time when news outlets are highly interested in tax evasion in order to fuel public outcry – any involvement in fraud, no matter how small, simply isn’t worth it.
Avoid the risks, not the tax
Clearly, it’s better to play it safe and remain compliant with tax laws, however for recruitment firms placing contractors across the globe, this isn’t a straightforward process. Cross-border employment laws are complex and recruiters and the contractors they place are facing a real minefield when it comes to navigating this tricky arena.
At 6CATS International we have a team of professionals with a wealth of knowledge to draw on in order to take the stress out of engaging contractors across the globe. Speak to them today to find out more.