A different way of working
In times of economic growth, there is a tendency to achieve increases in scale through acquisitions. The economic recession causes companies to adjust to new market circumstances. But how?
A tax control framework is an internal control instrument specifically aimed at the tax function within a company. The tax function is not limited to the Fiscal Affairs department. A TCF is an integral component of a company’s Business- or Internal Control Framework (hereinafter also ICF). The ultimate objective of a TCF is to arrive at correct, complete and timely reporting for all resources.
Among other things, this includes policy, the supervision and subdivision of fiscal responsibilities, internal procedures/processes and control measures (hard and soft controls).
This framework ensures that an organization has more control over its fiscal processes. A TCF can prevent tax errors, identify opportunities in a timely manner and perform correct filings at the right moment.
A company's VAT control framework system is adequate if it provides insight into where VAT risks may arise in the company (awareness), while the degree of risk tolerance is established internally and while appropriate control measures are taken with respect to the identified material risks.
Control activity examples in the four areas of study:
|Focus areas||Risk description|
|Strategic||VAT strategy cannot be tested as to whether this is in line with the entire tax and corporate strategy.|
|Operational||The indirect tax function is not consulted when changes occur.|
|Financial||VAT payments are not made on time.|
|Compliance||The VAT filing is not done on time.|
The KEY Group has extensive expertise in the area of Business Controls / Internal Controls and is used to arrive at a normative framework for indirect taxes, the so-called Indirect Tax Control Framework.
The development was aided by the practical experience of two former Ernst & Young partners who specialize in the area of Business Control and Indirect Tax Performance and who have supported clients with structure, design and implementation.
The KEY Group has used the experience of one of the largest multinationals in the world to test and improve the normative framework based on examples and practical solutions.
The collaboration of experts Ferry Geertman, Robbert Hoogeveen and Richard Cornelisse has resulted in an integrated client solution from the various areas of expertise.