United Kingdom

Tax Risk and Governance 

Tax risks have often been a mystery to many not directly involved with tax and even then there hasn't been an organisation-wide framework for managing tax risk. With HMRC paying close attention to governance - and regulation evolving quickly - today's environment demands greater Board-level understanding of tax risk.

What's on your Mind?

 

  • Responding to HM Revenue and Customs' multidisciplinary risk-based approach
  • Managing the new tax agenda 
  • Creating a sustainable and embedded risk framework for tax 
  • Responding to the Senior Accounting Officer Legislation (Schedule 46, Finance Act 2009)
  • Improving the connectivity and the integration of the Tax Function with the wider business
  • Enhancing control and oversight over Indirect, Payroll and Operational taxes
  • Cost reduction through outsourcing

 

Bringing you Peace of Mind

 

We work with tax functions, internal audit, risk functions and Boards both in the context of HMRC challenges and other business issues to review and enhance their company's tax governance, processes and controls. Our approach focuses on understanding the key risks in the business as they relate to tax and uses the "three lines of defence" model to create a sustainable and embedded framework to implement an effective firm-wide risk management system for tax.

 

We also advise governments who are planning to introduce new taxes as well as tax administrations of emerging countries who are looking to modernise their processes and technology as well as their relationship with the taxpayer.

 

What's in it for you

 

Potential benefits to our approach are:

 

  • Reduced financial and reputational risk
  • Improved financial certainty
  • A framework for creating an open and transparent relationship with tax authorities and shareholders
  • Improved interaction of the tax function with the wider business

 

Why KPMG

 

  • KPMG's thought leadership in tax risk management and governance 
  • Adopted internally recognised leading practises in implementing tax risk management systems
  • Our approach focuses on the organisation as a whole and doesn't put tax risk into a silo

 

Case Study

 

With our client we developed their tax strategy; work shopped with their board their appetite for risk and clarifies responsibilities and accountabilities for all taxes. This gave them a clarified framework enabling the tax function to effectively monitor tax risks and spend time on tax planning.

The operationalising of the framework was achieved by setting guidelines for the businesses to follow and involved the internal audit function as the third line of defence. 


The overall benefit for the client was a firm wide view of risk, improved compliance and the effective involvement of Tax in strategic operations/decisions.