Partnering Perspectives | Winter 2016
Additionally, information on governance arrangements is
• Details on how the business’s tax risk is managed;
• A high level description of key roles and their responsibilities;
• Information on the systems and controls in place to manage
tax risk; and
• Details on the levels of oversight of the business’s board
and its involvement.
If a company has a code of conduct, the details of that code
should be provided. Finally, information should be provided
about when a company would seek external tax advice, if any,
an outline of tax planning motives, and the importance of each
to the tax strategy.
US tax directors of companies with U.K. subsidiaries have been
wrestling with these requirements. Obviously, there is a fine line
between meeting these disclosure requirements and protecting
important proprietary information.
The United Kingdom and the European Union also have
proposed disclosure requirements on advisors and
intermediaries that would impose monetary penalties.
“… compliance has become a very
important aspect of the tax department
of corporations and has become a risk