A step forward to mitigate TP Risk: A (global) ISO 9001 Certification.

Transcription

1 A step forward to mitigate TP Risk: A (global) ISO 9001 Certification knut.tax@gmail.com 1

2 Agenda The tax climate is changing for the worse ISO 9001 Certification on TP 2

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4 The tax climate is changing for the worse The tax field is developing rapidly: More conflicts & court cases More compliance & administrative burden Higher uncertainty Tougher & more demanding tax authorities Increased complex global tax world & requirements Need to improve documentation Increased risk 4

5 The tax climate is changing for the worse (2) TP risk amongst the three highest risks TP - a ticking bomb? TP risks cumulative; adjustment + non-deductible penalties + interest + double taxation + reputation + administrative burden + litigation + several countries at the same time Adjustments in billions in USD is more common 5

6 The tax climate is changing for the worse (3) Tax Authority in Mexico: Multinational corporations have to improve the quality of documentation and implement internal control, routines and procedures in order to mitigate the risks and to prove that they operate in line with the law. The way forward is to be proactive and protect themselves. Achieving an ISO 9001 Certification is one way. 6

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8 ISO 9001 Certification ISO 9001 certification is a quality system and evidences that the organization has implemented good procedures Requirements: Quality management Risk management (BEPS) Awareness and analyse 8

9 ISO 9001 Certification (2) Internal control, procedures & routines Satisfactory documentation Management, resources & communication Continuous improvement Valid for 3 years; certification Y1, audit in Y2 and Y3 and renewal in Y4 ISO Certification for Head Office, high risk entities or the group as a whole 9

10 Benefits of ISO 9001 Certification Recognized worldwide as an quality stamp Evidence company commitment Evidence focus on TP risks A strong signal to all stakeholders like; investors, tax authorities other governing bodies, judges, top management and banks 10

11 Benefits of ISO 9001 Certification (2) A small cost / insurance premium to mitigate high TP risks Based on existing routines, internal control and documentation Consistently high quality of services and products More competitive & better equipped to meet challenges 11

12 Benefits with ISO 9001 Certification (3) Cost savings Streamlined TP and better overview Certification by an accredited and independent body Cost depends on several factors

13 Benefits with ISO 9001 Certification (4) Authorities generally do not pursuit companies that provides an ISO certification Central Tax Office for Large Enterprises in Norway: ISO 9001 Certification is best practice. Tax inspectors terminated TP investigation due to ISO certification. 13

14 Benefits with ISO Certification (5) Tax Authority India: ISO certification would certainly be accepted as evidence of conformity to good practice processes. Tax authorities need to select entities for inspection with care: Which one will they choose? One with an ISO 9001 certification or one without? For further information: Article OGEL (

15 We offer: ISO 9001 certification worldwide on: Transfer Pricing and / or Anti-corruption and / or Global tax risk Cooperation agreement with Intertek Moody ISO 9001 Certification for multinational companies such as; Jotun, multinational shipping, car manufacturer, insurance & clothing manufacturer 15

16 ISO 9001 Certification on TP & anti-corruption Requirements ISO 9001 Standard TP US & UK Corruption Act Requirement for avoiding prosecutions General policy x x x Top management involvement x x x Implementing policy and procedures x x x Internal communication and training x x x Risk management x x x Focus on quality x x x Satisfactory documentation x x x Internal control x x x Continuous improvement x x x

17 Are you prepared when the tax inspector knocks on your door? Prepared for the uncertainty, the worst case scenario, the high cumulative risks and all the negative consequences of a TP investigation?