Tax risk management assumes an increasingly important role in corporate governance, in consideration of the financial and reputational consequences of tax violations.
The Tax Control Framework (TCF) is a set of rules, procedures, organizational structures and safeguards, aimed at allowing for the detection, measurement, management and control of tax risk, understood as the risk of incurring a violation of tax regulations or a conflict with the principles and purposes of the legal system (abuse of the law).
The tax variable and the risk management approach underlying the correct determination of taxes have become part of the catalogue of sustainability indicators, commonly summarized with the acronym ESG.
The TCF enables the company to enter the cooperative compliance regime which allows it to avoid ex post control activities, to activate preventive dialogue with the tax authority on uncertain and controversial tax positions. The implementation of the cooperative compliance regime allows the tax payer to benefit from certain reward mechanisms, such as faster procedures for tax rulings and reduction of penalties in the event of violations.
A significant part of tax crimes, attributable to tax fraud, have entered the catalogue of predicate crimes of the liability of entities for administrative offenses deriving from crime; this makes it advisable to implement the TCF integrated with the mapping of risks and anti-fraud measures.
PwC TLS has specific digital skills to support clients in identifying and implementing the most suitable technologies for the Tax Function.
In particular, PwC TLS operates through the implementation of Pre-Packages created on primary third-party technologies, the implementation of proprietary technological solutions or the provision of advanced digital services based on the most advanced technological solutions (eg, Data Analytics, Robotic Process Automation, Artificial Intelligence) for the analysis, automation and representation of data managed within fiscal processes.