Managing operational tax risk: survey highlights
Our first 2014 Tax Risk and Controversy Survey identified four heightened sources of risk — reputation, legislative, enforcement and operational — based on results from 962 tax and finance executives in 27 countries, including more than 130 chief financial officers.1
This report is our second in this series. Using the survey results, inputs from tax function leaders and EY professionals, it provides a deeper exploration of the many sources of “operational” tax risk. We define operational tax risk as those arising inside the organization from the following sources:
In our newest survey, we examine what companies are doing with the resources they have now, as well as how they build flexibility and resilience. We also investigate the divide that some companies may have to cross as they move from current to future tax risk management models.
Finally, we identify eight key components of an optimal tax framework that can be adopted to mitigate operational tax risks and achieve control, value and efficiency across the entire record-to-report process.
|Leading sources of operational tax risk|
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The fact is, now is the time for businesses to make sure their tax functions have the right people, processes and technology in place. Getting things right the first time can pay dividends — from higher levels of control, greater efficiency and value in the tax function to reducing the incidence of risk.
1 The first report in this series, Bridging the divide, was based on survey results from 830 executives in 25 countries. Additional survey results have been collected since the publication of that report.