The OECD stresses the importance of a “comprehensive risk management strategy that includes tax” as a vital part of being a good corporate citizen and managing tax risk.
But for consumer-facing businesses that have often grown or changed shape rapidly through M&A or business restructuring, this is easier said than done.
When processes and systems are fragmented and inconsistent in different parts of your organisation, there’s more complexity, more inefficiency and more potential for tax risks. This section explores how redesigning your tax processes across your organisation can improve efficiency and reduce risk.
Tax Control Framework
Where you have complex processes, or different processes in different parts of your business, you’re increasing the potential for tax risks. Developing a centralized Tax Control Framework which your whole organisation uses will not only give you a clearer view of your current processes and risks, but also make it much simpler to manage and control them.