Tax Risk Services

Manage tax risk and build trust with stakeholders

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A defined strategy for approaching tax risk 

With tax disputes and regulatory scrutiny on the rise as well as greater external pressures for enhanced tax transparency, businesses need a clearly defined strategy for tax risk management.

Every business decision has a tax implication. Minimizing the tax function’s role or excluding tax from the development of company strategy can leave businesses exposed to tax risk. 

Key warning signs of underperformance in your tax function indicate that a proactive approach to tax risk management should be high on your priority list: unexpected tax examination findings, high turnover, negative auditor findings, or stakeholder inquiries related to tax, to name a few. Major growth or transformation may also trigger the need to strengthen tax compliance. 

We help clients establish a tax risk strategy that documents the directives of the tax function and defines principles for governance and reporting. Our team works with you to understand the strengths and weaknesses of your current tax risk management structure and provide enhancements to help mitigate your operational tax risk. Bringing industry experience and an understanding of the external pressures facing your business, we focus on aligning tax governance with your broader enterprise risk management strategy. 

As the global economy moves toward more tax risk scrutiny and transparency, is your tax department prepared?  

How BDO Can Help

Manage Risk with a Total Tax Mindset and a Tax Control Framework

At BDO, we embrace a Total Tax mindset: an understanding of — and visibility into — the sum of all taxes your business owes at any given point in time.  An effective and resilient Tax Control Framework (TCF) helps enterprises ensure the accuracy of their tax returns and disclosures.  

A holistic Total Tax approach and TCF are essential components of an effective tax risk management strategy. We work with organizations to develop Total Tax strategies and TCFs that include these essential elements.

Clearly documented vision of the tax function that sets out guiding principles. 

Implementation across all transactions and all tax matters in a consistent and predictable manner and embedded into the culture of the tax department.

Availability of adequate resources and clear assignment of responsibilities

Mechanism in place for rules and reporting and understanding the consequences of noncompliance

Compliance with the policies is monitored and tested. 

Assurance to internal and external stakeholders that the TCF is executed in a manner consistent with the organization’s “risk appetite.” 

Tax Operations Maturity Model

Organizations today are experiencing higher levels of operational tax risk due to an increasingly complex regulatory landscape and fewer resources. Take our assessment to help identify possible areas of risk.

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Capabilities

By conducting a global tax risk review, we help organizations better understand and manage their risk. Through the assessment, clients will be able to: 

  • Evaluate tax risks and potential business impacts 
  • Benchmark the way tax and tax risk is currently managed within your organization 
  • Identify what is working well and opportunities to improve 

We work with you to create a Total Tax strategy and a TCF that serves as the north star for improving the effectiveness of your global tax function. Through the creation of a TCF, and working with other BDO Tax teams including Tax Automation & Innovation, we help:

  • Enhance policies and processes 
  • Use resources more efficiently 
  • Use technology and data more effectively 

We work with companies to help document and support their tax risk management policies and procedures with a view toward providing assurance to external and internal stakeholders. 

BDO's Tax Risk Management Approach

 

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