An efficient fiscal governance should be considered a great transparency method which is essential for big companies.
Nowadays, it is essential for a big company to have a good and effective fiscal governance to avoid unnecessary risks and even frauds regarding the taxation of the company.
The fiscal risks are circumstances or unforeseen elements that could affect to the fiscal framework of the firm. That’s the reason why they are extremely dangerous, because they can have a high impact on the company that could cause the loss of high amounts of money as well as sanctions from the Tax Office.
In this sense, having a good fiscal governance will be a great pillar in favor of the transparency and the compliance of the company, which in a long-term could imply an attenuating circumstance in case of an infraction occurs from involuntary mistakes.
In Spain, one of the main measures that the company could take, to have a good fiscal governance and to avoid risks, is to use the model implemented by the UNE last27th of February, 2019, “Systems of tax compliance management. Requirements with orientation for its use”. This model establishes a system of fiscal obligations compliance and facilitate the detection and correction of mistakes. One of the main objectives of this regulation is for the organizations to implement and improve their tax compliance politics to prevent and / or to detect early the tax risks that may have been committed.
Another alternative that the entities could benefit from to improve their taxation and transparency is the ICAP program (International Compliance Assurance Program), promoted by the OCDE.
This program was created with the intention of helping to improve the security of the corporate taxation and to administer their accounts in the different countries. The organizations get a support that gives them higher security in the necessary reports of every country through fixed standards.
B Law & Tax
International Tax & Legal Advisors