As a result of the global trend towards greater cooperation between countries’ tax authorities and the resulting increased enforcement, Chief Executives and board of directors members are taking an increased interest to ensure that tax risk is managed. To address this new audit reality, companies will be compelled to recognize, quantify and address their tax risk. Managing tax risk is not about minimizing risk, but rather is about optimizing risk and value by determining what risk level is acceptable to your organization. That tax risk should be aligned with the company’s broader corporate strategy, then managed and monitored.
This paper addresses the various types of tax risks that businesses should consider and the tools and resources that are available to help manage tax risk.