Why review your tax risk?
Greater scrutiny from the media, tax authorities and government has led boards to demand greater reassurance and knowledge of tax compliance and risk management procedures. A tax risk review can identify weaknesses and process improvements that create better assurance outcomes and financial rewards. An independent review provides peace of mind over the strategic (top-down) and operational (bottom-up) management of tax risk within an organisation. It should:
- confirm strategic and governance frameworks for tax risk management
- test operational controls and processes for tax, and recommend control improvements
- provide insight on a risk-assessed approach, quantifying risks and opportunities.
Providing boards with the comfort they demand
To be able to inspire confidence from their boards, businesses must truly understand their holistic tax position. They must understand the scale of taxes, the controls and processes supporting its management (people, IT systems, etc), and the strategic direction of the business.
An integrated tax function is therefore needed. Boards must not only be satisfied their tax function is working closely with other lines of business to ensure that technical expertise is correctly applied, but also that tax risk is managed within the framework of a comprehensive tax strategy, in the UK and globally.
How can we help?
By using a multi-disciplinary team to apply our robust methodology, we are able to provide assurance to both Heads of Audit and Heads of Tax over your tax strategy and governance, compliance and controls. As part of our review, we will work with you to develop pragmatic action plans to address areas for improvement.
Our risk-based methodology covers six key areas of tax risk management and focuses on the following aspects:
Tax governance and strategy
How is the group's tax strategy disseminated, understood and implemented throughout the business?
Tax risk management and escalation process
How are tax risks managed and issues escalated to an appropriate level of seniority?
Is the tax function appropriately integrated into the business to sufficiently apply their tax expertise to manage risk?
Management of taxes: Scope, responsibility and resource
What are the taxes under management, what are the relevant geographies, who is responsible and how are resources allocated to these taxes?
Management of stakeholders
How are the crucial relationships of the tax function with both internal and external stakeholders managed? For example, with tax authorities, employees, the board, other lines of business and customers.
Management of taxes: Compliance and planning audit
How does the business ensure compliance and how is this monitored and controlled?
Is any tax planning in accordance with the group's tax strategy and how is this recorded or tested?
With companies facing greater pressure from regulators, tax regime changes and increased public interest in ethical tax arrangements, we will provide solutions to help you to manage your risk profile and improve your control arrangements, and identify inappropriate costs and non-deductible expenses and the accuracy of payments to government authorities.
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