Tax Strategy & Governance

FFrom the definition of the Tax Strategy to the design and implementation of the Tax Risk Governance Framework enabling the communication and reporting to internal and external stakeholders

At the end of 2018, the Belgian Tax Authorities launched a pilot "Cooperative Tax Compliance Program" (CTCP), a project embedded in the audit strategy of the Tax Authorities. This pilot project will last at least two years and is currently focused on very large groups.

The CTCP stands for cooperation with trust, transparency and faster legal certainty to improve compliance. The underlying system-oriented approach is based on the OECD Tax Control Framework (TCF) and consists of a methodology to map tax risks with a focus on processes and controls.

As is the case in the Netherlands and the UK, it is likely that this way of working will eventually be rolled out, in a proportionate way, to a broader range of companies.

To prepare your group for the above TCF approach, I can support you(r tax team) to set up the proper tax governance and systematically address the following questions:

1. Have you developed a tax vision/ strategy for your company?
2. Have you defined the tax control areas and translated them into processes?
3. Do you perform tests on a regular basis?
4. Have you discussed the tax strategy and the outcome of the tests with your audit committee?
5. Are you considering discussing the outcome with your tax authorities in order to obtain legal certainty?
6. Is your approach embedded in the Internal Control Governance Framework of your company?

The above framework strives for a working method to anticipate or resolve tax issues faster, resulting in increased legal certainty for your company.

Relevant experience in this area:

1. Elaboration of the Tax Control Framework (Internal control objectives and processes based on COSO) for a quoted state owned group in Belgium;
2. Quarterly reporting to the audit committee.