Tax risk is the risk that transactions or business relationships may have unforeseen adverse tax consequences. Like; giving rise to additional tax costs, administration of tax may be more costly or otherwise more burdensome - than foreseen, tax risk may arise from existing tax laws and practice, or from changes in tax laws and practice etc.
The profile of tax has become much more visible not only from an investor and board perspective but also from a tax authority and public perspective. There are a significant number of taxes that organizations are exposed to and the tax values are enormous. Thus, the management of tax risk is a core issue regardless of the size of business.
Tax professionals recognize that varying levels of risk accompany tax strategies. Tax risk arises from uncertainty: uncertainty surrounding the facts, uncertainty involving the application of the tax law, or uncertainty regarding the accurate processing of information by the organization's accounting systems. Tax professionals have recently focused on managing tax risk in order to improve the expected outcomes of organization's tax strategies.
All too often the responsibility of managing tax risk is dealt with solely by the tax team. Changes in the regulatory and governance landscape, however, mean that chief executive officers, chief financial officers, audit committees and tax and accounting teams all need to feel confident that an effective tax risk management policy is in place.
Also for business to succeed in today's changing world, it needs to take direct control of risk. To achieve this, it needs to embed risk into important decisions and day-to-day operations, channeling it proactively and positively to create real business value.
Though many organizations do not have a formal tax risk management strategy, these organizations are required to take steps toward creating a formal strategy due to increasing regulatory pressures. To create an effective tax risk management strategy, organizations need to collaborate on how to identify, monitor, communicate, and mitigate their company's tax risks. Proper tax risk management framework helps business decision makers to identify risks early on, thus making the implementation of the ideas less intrusive and more effective.
Looking at the need of the time, Softax arranged a day long workshop on “Tax Risk Management” where emphasis should be on tax risk management in the corporate environment, the objective is to develop an ex-ante measure of organization's overall tax risk. Additionally, participants will learn the principles and methodology of Tax Risk Management based on Best Practices. As several organizations have developed different Risk Based methodologies, we will distinguish the several approaches and purpose the more relevant ones.
This workshop also aims to help participants to proactively identify and mitigate risks before they arise. Our expert trainers will assist participants in developing a framework for managing tax risks across all business units and provide with the tools to minimize these risks. Additionally participants will:
understands the role of tax risk management;
understand the role of both tax and non-tax factors that arise tax risk;
be able to proactively evaluate legislative changes and the potential impact on business;
be able to provide a level of comfort that risk is maintained at an acceptable level;
be able to ensure that tax strategies, policies and processes are standardized and integrated within the wider organization;
set in place operational safeguards against potential risk.
General Principles of Taxation System;
Common Types of Tax Risks;
Importance, Benefits & Approaches of Tax Risk Management;
Sources and Identification of Risks;
Assessing organization's vulnerability to tax risks;
Risk Management Framework;
Grouping & Breaking down of Risks;
Discovering the necessary preventive strategies;
Internal Control - Control Environment
Hierarchy of objectives, risks and controls;
Review of current trends and new techniques to establish a sustainable corporate environment;
Developing a robust awareness program within the organization;
How to keep yourself update with day to day changes for effective risk management;
How to avoid payment of extra taxes;
Tax risks involved in transactions between associates;
Tax risk and departmental proceedings;
Tax Risk Management in the light of Superior Courts' judgments.
Date : March 07, 2019 (09:30 am to 04:30 pm)
Venue : Marriott Hotel, Karachi
Brochure Link: https://softax.com.pk/trainings/2019/Tax%20Risk%20Management_Mar2019.pdf