Internal controls and their efficiency or inefficiency in the tax process applied to the cosmetics and perfumery retail sector: an empirical theoretical study

Abstract

This study analyzed the possible risks in the process of calculating the contributions of PIS/Pasep and Cofins in the cosmetics and perfumery sector applied to retail trade, observing whether the existing internal controls are sufficient to guarantee tax efficiency in each company. The methodology used in this work was to apply a questionnaire on the taxation process on sales in retail stores in the perfumery and cosmetics sector of a mall in the capital of the state of Santa Catariana. This research was limited to differentiated taxation products, known as single-phase taxation, applied to contributions known as PIS/PASEP and COFINS. The investigation focused on demonstrating the relationship between internal controls and the calculation of these taxes, the shared responsibility of accounting and administrative professionals and the importance of having knowledge so that there is no unnecessary taxation, the results revealed a considerable index of one probability of inefficiency of the tax process, where the existing and worked information for the tax process is not sufficient for the correct publication of a possible tax reduction for this sector. In addition, this condition reveals an interesting scenario, because despite a bureaucratic and costly scenario, considered the tax sector. In light of this, this research reveals the probability of considerable inefficiency in the tax sector.