Tax risk services
The uncertain economic climate and recent regulatory initiatives have placed tax risk firmly on the boardroom agenda. Drivers include increased corporate sensitivity to tax ‘shocks’ and increasingly risk-focused and coordinated tax authorities. In the UK, the new penalties for incorrect tax returns and the Senior Accounting Officer legislation have heightened focus still further.
The use of an effective tax risk framework can help you develop policies, processes and systems that support the proactive management of tax issues. They can also help your tax team to communicate effectively with senior management, the board and external stakeholders. A strong tax risk management framework should actively support efforts to achieve sustained compliance with tax-relevant laws and regulations while also enabling the tracking and realisation of tax opportunities.
Issues and trends
Our solutions
Management of tax risks operates on a number of tiers. At the highest level, a tax strategy sets the tone at the top of an organisation and ensures tax objectives are aligned with the overall strategic direction of the business. Underlying that is a set of policies and procedures laying out how the strategy is put into effect, and beneath that the detailed processes and internal controls by which the tax function operates on a day-to-day basis.
The areas in which we can assist include:
- Risk assessment – identifying, assessing and benchmarking potential tax risks across the organisation, and offering recommendations on how to mitigate them.
- Decision making – help in setting policy limits for acceptance of planning proposals, enabling the approval process to be streamlined.
- Strategy – giving advice on the typical components of a strategy, drafting new ones, or reviewing existing ones.
- Processes and controls – help in documenting end-to-end process maps and internal control frameworks, suggesting improvements and assisting with implementation.
- Tax operating model – design and implementation of tax operating frameworks
- SAO – assistance in assessing compliance with the legislation, identifying areas of risk and putting corrective measures in place.
- Sarbanes Oxley s404 – designing processes and controls, documenting and testing.
- Internal audit – offering tax views, communication of tax needs, and design of tests
Useful links
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