Tax Risk Assessment and Mitigation

Tax risk assessment prioritises exposures using transaction facts, historical positions, control weaknesses and the strength of supporting evidence.

Taxpayers, finance teams and group tax managers reviewing a transaction, a reporting requirement or an authority communication can use this service to clarify a particular issue. A useful starting question is: “How are tax risks prioritised for remediation?” Begin with the facts behind that question rather than assuming that a standard package will resolve it.

The engagement can cover the following workstreams. The proposal specifies which apply to your matter and what evidence or specialist input is needed.

• Create an issue and exposure register.
• Assess likelihood and financial implications.
• Assign remediation and monitoring actions.

Start with the records below where available. They help establish the facts before a more specific checklist is agreed.

• Returns.
• Notices.
• Tax provisions.
• Internal review findings.

Provide the relevant entity, transaction or reporting period and any existing notice or deadline. Identify missing or inconsistent records so they can be addressed explicitly.

A risk score should show its assumptions and evidence; an unsupported numerical rating offers little basis for management action.

1. Define the question: create an issue and exposure register, using the available returns and the facts you provide.
2. Examine the evidence: assess likelihood and financial implications. Record unresolved information and the assumptions that affect the analysis.
3. Agree the action: assign remediation and monitoring actions. Set the required deliverables, responsible owners and any follow-up or external dependency.

The proposal for Tax Risk Assessment and Mitigation sets out the analysis, documentation or coordination deliverables and the work you retain. The availability of returns, notices, tax provisions and internal review findings affects readiness and the amount of follow-up needed. Fees and the working schedule are agreed after that initial assessment. Any required independent report, legal representation or authority application is identified as a separate responsibility where relevant.

Use these official resources for the relevant framework. Application to a particular entity, period or jurisdiction requires a separate assessment.

• Income Tax Department: Applicable tax periods and framework

• Tax Assessment and Representation Service
• AML Risk Assessment & Compliance Review
• Property Tax Assessment and Valuation
• Transfer Pricing & International Tax Advisory

Share a short summary of your Tax Risk Assessment and Mitigation requirement and the records already available. BIATConsultant can assess the proposed scope and explain the next steps.

• Request a Tax Risk Assessment and Mitigation consultation
• About BIATConsultant