In the current turbulent tax landscape, a good way for a business to stay ahead of controversy is to adopt a global perspective everywhere it operates while establishing a global tax controversy strategy that is integrated with a strong tax risk and corporate governance framework.
Businesses should have in place a documented tax strategy setting out their approach to compliance, planning, and interactions with tax administrations. The strategy should be put into action by a knowledgeable team that is integrated into the overall business.
Embracing technology and digitalisation is key. The capability to directly submit accurate source tax information to the revenue authorities minimises potential tax controversy and tax uncertainty. In addition, having internal procedures on how to respond to requests for information from the tax authorities is important. As change is constant, businesses need to stay connected to global legislative, regulatory, and tax administration changes.
Through managing tax controversies well, businesses will be able to avoid unexpected tax bills, develop stronger relationships with the authorities, avoid reputational damage, and, in the process, increase business efficiency.
Source: https://www.tihk.org.hk