How to handle tax risk: an in-house perspective

The essence of tax risk management is to follow the principle of the 3Cs: Concern, Cause and Countermeasure. A good approach is to have comprehensive tax policy; provide clear guidance and detailed training on the tax requirements; strengthen the policy with a robust tax governance framework; define your tax principles and stick to them; analyse your tax risks, considering both known and unknown issues; manage the tax risks so as to have minimal impact but be well provided; conduct reviews, reports and health-checks to monitor your tax risks; maintain a practical business continuity plan; and ensure your tax department is fully engaged through the risk process. Remember that reputation is your company’s most important asset; therefore, take care in all you do.