Tax compliance management systems

It happens again and again that companies declare tax-relevant matters incorrectly which result in tax reductions. For some years now, tax authorities have been examining in-depth whether such tax reductions may have been taken lightly or have been accepted with approval. The accusation of tax evasion quickly arises with grave consequences for numerous parties involved in the company at all levels.

In order to avoid criminal investigations or even to defend oneself in the context of such accusations, existing control/tax compliance management systems (tax CMS) are of great importance. Because work errors that lead to tax reductions can never be completely ruled out, a company must prepare itself accordingly and take appropriate preventive measures. Our practical experience shows: in the end, only the evidence that an internal control system is in place, and in proper use to meet tax obligations, can defend the accusation of wilful or reckless behaviour. And vice versa: without such a system, exemption from liability in practice will hardly be possible in the future.