Study notes: Honours:

Tax Management

Tax Risk Management

All honours study notes

Managing the Tax Risk

Areas of risk

  1. Planning risk:  More upside risk /opportunity
    • downside risk:  apart from implementing planning, cost to do so and getting permission from authorities.

Managing Tax Risk – Causes of risks

  • Tax strategy and objectives
  • senior management approach to tax management and risk
  • attitude to tax risk and resource devoted to it

Internal control

Internal control is defined as a process affected by an entity’s board of directors, management and other personal, designed to provide reasonable assurance regarding the achievement of objectives in the following categories:

COSO’s 5 activities

COSO’s 5 activities must be in place to ensure that the organisation is operating effectively.  These are:

Company’s policy on tax risk management will determine:

Tax risk management is about a considered approach to your tax risks – it is not about trying to reduce them to zero.