Close All

Open All

Tax Risk Management

India's tax and regulatory environment can make the task of establishing and managing operations in the country a complex one. Constant changes in tax laws only add to the challenges. As businesses grow, tax risks increase along with a growing need for greater accountability and transparency. In such an environment, tax risk management is essential to maximise cash flows and proactively reduce risk while meeting compliance deadlines.

SKP can collaborate with you in various ways right from identifying and assessing tax risks to designing controls, monitoring and evaluation. We provide advisory, compliance and litigation support for international tax, transfer pricing and indirect taxation matters.

  • We can be your Tax Advisers and provide solutions for specific issues.
  • We can look after your compliance needs so you don’t have to worry about meeting the innumerable compliance deadlines.
  • We can be your Tax Risk Manager/Chief Taxation Officer, akin to your Tax Director, and proactively look at the needs of your business. We take overall responsibility for reducing tax risk and thereby improving cash flows. We help you remain compliant and make sure that requirements are met in time. In effect, we would be your tax department on a co-sourced basis.

 

Our complete tax solutions can benefit you as:

  • we have specialists who can provide a variety of services in a holistic manner;
  • you don’t need to recruit your own team and worry about training or attrition;
  • we proactively manage your tax risk in coordination with you; and
  • we help free up CXO time.
Prepare a Tax Risk Management Framework

Based on the relevant tax legislations and your organisation’s needs, we can help you create a tax risk management framework that would help identify tax risks and specify how processes and policies would be implemented. We can also review your existing tax risk framework and advise how it can be improved upon.

Prepare a Tax Risk Management Manual

The documentation needs of an organisation would depend on its size, operations and other factors. A Tax Risk Management Manual can facilitate monitoring by the management or tax authorities as well as help your finance team and other departments to have a coordinated approach to managing tax risks.

Tax Co-sourcing

We work with your in-house tax team and/or external advisers and become an integral part of your team. We assume complete responsibility of your tax department and, in essence, step into the shoes of your tax director. We would then proactively anticipate situations and caution the management if we expect any tax-related implications instead of merely reacting to a situation. With ever-changing laws and regulations and confusing judicial decisions, it is essential that your tax department is in the safe hands of a team that keeps abreast with the latest developments.

Offer Advice

Our large team of specialists with varied experience is well equipped to offer advice on specific issues. Our well-researched opinion often provides great clarity to the management on any inherent issues, the legal position, judicial precedents and the way forward.

Manage Compliance

The web of multiple taxes, deadlines, tax rates, registrations and filings in India requires to be managed carefully and accurately. Even small technical defaults can result in severe consequences for the taxpayer. Therefore, it is imperative that all tax compliances are managed efficiently. Our process-driven tax team is well trained and equipped to handle various compliances. Sophisticated automation of routine tasks and efficient implementation of the “maker-checker” concept in the execution of tasks help us handle large volumes of transactions and a large number of clients in an efficient and timely manner.

Mitigate Risk

Our team works with each client on ways to mitigate tax risks in India. While identifying and assessing tax risks are the initial steps, we ensure that the information obtained is conveyed in a way that will fulfil the tax risk management policy. In this manner, we help protect your business from a higher tax burden (incremental tax, interest and penalties on account of additions/disallowances), negative impact on cash flows, negative publicity and the resultant impact on reputation, potential loss of business opportunities, and any uncertainty stemming from the interpretation of tax laws.

Litigation Support

India is, by now, well known for its tax litigation history. Most revenue audits end up in litigation for the taxpayer. Multinational corporations, in particular, have suffered especially on the transfer pricing front. In this context, our team has the unique distinction of an excellent track record in terms of representation and litigation support. We pride ourselves on our high success rate at the representation stage itself. This results in doing away with the need for litigation, thereby saving our client a huge amount of time, effort and money.

Offshore Tax

Besides being well equipped to handle Indian tax matters, we have built up capabilities in offshore tax as well. We can manage the tax returns of your expatriate workers in other countries. We can also handle Value Added Tax (VAT) compliances of all your subsidiaries across the globe. Through our international network partners, we can also provide you with tax support in over 100 countries.

Review and Evaluate

While identifying tax risks is essential, monitoring the implementation of the designed procedures is another important factor in tax risk management. Our team understands the need for evaluation and reviews the success of the tax risk framework regularly.