In-house perspective from Tim Branston on tax risk
The appliance of tax legislation to a taxpayer’s commercial activities is worryingly often far from clear. Tax rules are rarely as fluid or responsive to change as the business world and therefore tend to be inherently imprecise. there is often great uncertainty about the application of tax rules to commercial transactions and especially cross-border transactions.
Companies can choose to deal with this uncertainty in a number of different ways. On the one a company could try to create certainty around the tax impact of its business affairs. This is likely to be a sub-optimal policy as for certainty generally equates to the highest possible tax bill. On the other a company that regards tax uncertainty as an opportunity to create value by knowingly taking and managing tax risks (often as part of a portfolio) is likely...
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Home >Articles > Tax risk: an in-house perspective
Tax risk: an in-house perspective
In-house perspective from Tim Branston on tax risk
The appliance of tax legislation to a taxpayer’s commercial activities is worryingly often far from clear. Tax rules are rarely as fluid or responsive to change as the business world and therefore tend to be inherently imprecise. there is often great uncertainty about the application of tax rules to commercial transactions and especially cross-border transactions.
Companies can choose to deal with this uncertainty in a number of different ways. On the one a company could try to create certainty around the tax impact of its business affairs. This is likely to be a sub-optimal policy as for certainty generally equates to the highest possible tax bill. On the other a company that regards tax uncertainty as an opportunity to create value by knowingly taking and managing tax risks (often as part of a portfolio) is likely...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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