THE ROLE OF TAX ACCOUNTING IN COST REDUCTION AND TAX COMPLIANCE

Abstract

Tax Accounting plays a crucial role in business management, ensuring tax compliance and preventing penalties resulting from non-compliance with tax regulations. This study analyzed how the proper application of tax laws and the adoption of efficient accounting strategies can minimize the risk of tax assessments and optimize the tax burden on companies. The research, based on a bibliographic review, demonstrated that choosing the appropriate tax regime, structured tax planning, and the use of accounting technologies are decisive factors in avoiding issues with tax authorities. Furthermore, the study highlighted the importance of tax compliance as a tool to ensure legal security and financial sustainability for organizations. The constant updates in tax laws present a significant challenge, making continuous training for accounting professionals and the implementation of technological solutions crucial for automating and improving tax management. The study concludes that tax accounting goes beyond legal obligations, positioning itself as a strategic tool for business competitiveness, enabling efficient tax management and contributing to companies' financial stability.