Tax Risk Management
Mapping of tax contingencies and organization of legal criteria for decisions and controls.
Tax risk management organizes the identification and monitoring of exposures arising from transactions, filings and disputes. The work begins by comparing the facts, the documentation and the tax treatment adopted. Discrepancies may arise from interpretation of the rules, classification errors or inconsistencies in execution. Separating these causes is important for defining proportionate measures, without confusing an arguable legal position with a mere operational error.
The analysis makes it possible to structure contingency matrices, record assumptions and prioritize the review of contracts and procedures. Legal opinions and assessments support decision-making, while the accounting recognition of provisions follows the relevant technical criteria and depends on interaction with those responsible for accounting. Monitoring proceedings and legislative changes should keep the diagnosis up to date. In acquisitions and reorganizations, this mapping also informs guarantees, indemnities and the contractual allocation of liabilities between the parties.
Our work
- Mapping of contingencies and tax positions
- Legal review of controls and documentation
- Support for due diligence and tax liability clauses
Does a legal opinion eliminate the risk of a tax assessment?
No. It documents the analysis and its assumptions, but does not automatically bind the tax authorities. The risk also depends on the facts and on how the procedures examined are actually carried out.
Editorial review: