Questions directors should ask about tax risk

Directors need to understand tax planning in order to oversee your organization's tax risk. Learn what processes and controls should be in place to guide decisions about the extent and nature of your organization's tax planning.

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Did you know directors can be personally liable for some of your organization’s unremitted taxes? Are you certain management has all the resources and process it needs to comply with taxation laws? What if there’s a change in tax law? Are you ready?

Board Oversight of Tax Risk: Questions for Directors to Ask will help you ensure that processes and controls are in place to guide decisions about tax compliance obligations and risk. It offers a number of questions you should be asking your fellow directors and management.

Questions for discussion include:

  • What is management doing about tax planning? Does it use location-specific tax advice? Is it considering commodity and other taxes?
  • What are the tax plan implementation risks? Do you have enough people to implement the plan? How will you monitor progress?
  • Do you have enough information from management when it comes to disclosure risks? For example, do you have existing administrative interpretations, practices and trends of the different tax authorities in which your company operates?
  • How is management dealing with compliance errors? Are they reporting on assessments and reassessments?

When overseeing management’s response to a reassessment, do you have all the information you need?