What for?
Timely and legal corporate tax settlement (tax compliance) is one of the most critical functions in any company, despite the fact that it is only one of the multiple areas of administrative support (back office) of the core operational activities.
Efficient and effective tax compliance management enables tax compliance implementation in a safe manner that guarantees process continuity, while allowing to deal with non-routine issues that generate tax risks or challenges, such as new investments, acquisitions or restructuring, as well as new types of contracts or economic events.
Tax risk is on an upward trend along with the global tendency to make applicable standards more stringent with the aim to prevent tax system erosion and tax avoidance, which is reflected in new regulations and laws introduced by OECD/G20, as well as the EU. Over the recent years alone, entrepreneurs have been burdened in this regard with numerous new administrative obligations hedged with stringent sanctions, constantly expanding the scope of required tax compliance, such as tax scheme reporting (MDR), JPK (Standard Audit File) reporting, tax strategy implementation reporting, white list or the beneficial owner test.
An effectively managed tax compliance is primarily the proceduralizing of routine activities in the field of tax compliance, and their organization in a process-like manner, which ensures continuous feedback at individual implementation stages, while providing knowledge, training, supervision and quality control updates. An effective tax compliance also includes adequate involvement of external experts in non-routine cases or cases that, e.g., require tax risk detection and mitigation. As a result, an effective tax compliance provides the board of an enterprise the possibility to exercise the so-called due diligence, which, in the event of disputes with tax authorities and identifying potential tax arrears, often enables avoiding severe penal and fiscal consequences.
Tax compliance in large organizations is sometimes arranged in the form of a so-called Tax Compliance Management System, with its role being full coverage of areas associated related to tax compliance (also going beyond the financial and accounting services, if they deal with tax settlements) with tight procedures combined in a central IT tool for managing them. Tax CMS are solutions with increasing global popularity. It should be stressed that their implementation provides large companies with access to special privileges, e.g., under the Cooperation Programme, since it satisfies one of the participation conditions, namely, the establishment of Internal Tax Supervision Framework.
For whom?
The cooperation offer primarily targets enterprises that:
- are interested in mitigating the tax risk for their business, including increasing stability and continuity in terms of meeting tax compliance obligations;
- experience discomfort associated with the high pace of regulatory changes and the rapid increment of tax-related administrative obligations;
- have suffered harsh consequences (tax surcharge, interest on arrears, additional sanctions, penal and fiscal sanctions) due to a dispute with tax authorities who questioned the correctness of tax compliance implementation within the enterprise.
How?
We provide our clients with:
- An audit of tax compliance or its selected areas
- Tax strategy development and audit
- Development and implementation of selected due diligence procedures (VAT, withholding tax, transfer pricing and others)
- Implementation of an internal MDR procedure or MDR instruction (in the absence of a need to have and internal procedure)
- Consulting and training in terms of updating the knowledge of the personnel dealing with tax compliance, as well as periodic procedure updates
- Implementation of a Tax Compliance Management System (Tax CMS) – more: link
- Consulting in relation to applying for the Co-operation Programme and establishing Internal Tax Supervision Framework
- Tax consulting as part of external tax compliance support
