Portuguese tax authorities to send tax financial alerts
The Portuguese tax authorities are to start sending out early warning messages to companies regarding their financial and economic situation and possible weaknesses that could put their businesses in jeopardy.
The system should be operational by the first week in December. The company health barometer is based on a collection of company indicators such as financial margins, cashflow, finance obtained versus EBITDA, loans and borrowings, financial independence and own capital versus company capital, among others.
The collective information comes from the Simplified Company Information (IES) which all companies have to provide the Portuguese tax authorities. Based on this information, the tax authorities analyse it and send the results back to the companies.
“This is a very pedagogical system using colours” said André Março, director of Business Facility who added: “the tool is being tested and should be available in the first week of December all being well.”
The mechanism is being developed in partnership with the tax authority (Finanças) as the information channel; the Bank of Portugal, the information production entity and IAPMEI, which manages the information regarding companies.
According to the data analysed, companies will receive a predefined message with all of the results and suggestions on what they need to do.
“The messages will help the companies know what’s wrong in specific areas and help them with suggestions on how to fix them without pressuring them” says André Março.
