Level C1

The Audit Before Christmas

Corporate Compliance, Tax Evasion & Risk Management

πŸ“œ 1. The Notice

FINAL NOTICE

REF: NP-2512-CLAUSE

FROM: GLOBAL TAX ENFORCEMENT AGENCY (GTEA)

It has come to our attention that your entity, North Pole Logistics, has significant compliance gaps. You currently hold substantial Assets (livestock, sleighs, and manufacturing plants) and valuable Intangible Assets (the "Nice List" database).

Furthermore, your recurring activities constitute a Permanent Establishment in almost every jurisdiction worldwide. We believe this is a clear case of Tax Evasion.

Unless you can prove your Charitable Status immediately, we will initiate Liquidation of the reindeer assets.

Sincerely,
The Auditor

πŸ”— 2. Vocabulary Match

Match the financial term to its definition. Matches will vanish!

βš–οΈ 3. The "Bureaucratic Passive"

Tax authorities use the Passive Voice to sound objective and intimidating. Transform these sentences.

1. Active: "We noticed an error in your file."

We have noticed your error.
An error has been noticed in your file.
The file had an error.

2. Active: "The court suspended the tax."

The tax was suspended by the court.
The court was suspending the tax.
Tax suspension happened.

πŸ“ 4. Santa's Reply

Help Santa write to his lawyer. Click a word, then click the gap.

overhead
deductible
jurisdiction
audit
compliance
πŸͺ

Dear Elf Legal Team,

We have a code red! I just received notice of a full tax ____. They want to see receipts from 1750!

Please tell them the North Pole is international waters and outside their ____.

Also, my ____ costs are skyrocketing. The Elf Union is demanding dental coverage for candy-cane cavities.

They are also claiming the cookies I eat are "personal income." Are they not a tax ____ fuel expense for the sleigh??

Fix this! I thought we were in full ____!

- Nick

πŸš€ 5. Strategy: The Future of Christmas

The audit went badly. You are Santa's Crisis Manager. Click a card to choose the future business model.

🌴
The Offshore Move

Relocate HQ to the Cayman Islands. Transfer IP to a shell company.

VERDICT: PR DISASTER! πŸ“Έ
The press leaks the "Santa Papers." Children cry. You are fined billions.
πŸ€–
Automation

Fire the elves to reduce payroll tax. Replace with AI Drones.

VERDICT: STRIKE! 🚨
The Elf Union (Workshop 25) shuts down the factory. Christmas is cancelled.
πŸ•ŠοΈ
Global NGO

Register as a non-profit. Joy is not taxable income.

VERDICT: SUCCESS! βœ…
High paperwork, but zero tax liability. The reindeer are safe!

πŸ“‚ The Audit File

Review your compliance terms (click to define) before filing.