TCRM3341 - The Business Risk Review (BRR+): Business Risk Review (BRR+) Assessment indicators: Risk Assessing Across Taxes:Overview
Our aim is to form open and honest relationships with our customers which will then facilitate a positive approach to tax compliance ensuring that the right tax is being paid at the right time. We recognise that our customers have a range of diverse and complex needs and are keen to develop and maintain collaborative relationships in order to ensure the correct tax treatments are delivered at the right time.
Evaluating a customer’s overall tax risk involves three key areas:
- Systems and Delivery – understanding how a customer ensures that their systems and process are suitable and sufficiently resourced to enable them to deliver the right tax at the right time while recognising and mitigating risks.
- Internal Governance – understanding the governance framework within which the customer manages tax compliance risk and how this applies in practice along with their openness and cooperation with HMRC.
- Approach to Tax Compliance – understanding the customer’s tax strategy and the structure of business interactions alongside the transparency of their relationship with HMRC.
Upon completion of these evaluations the CCM will record an overall risk rating for the customer which will then be shared with the group.
For each of the three key areas there are 8 low risk indicators. Whether a customer is identified as Low Risk, Moderate Risk, Moderate – High Risk or High Risk is dependent on a customer’s ability to evidence that they meet each of these indicators. Which customers might expect to fit in each risk rating can be found in TCRM3360.
In the event of serious failure of one or more indicators the CCM may determine that the failure has additional weighting and determine the level of risk accordingly. Further instructions about the number of indicators that need to be met for each of the three key areas in order to be Low Risk can be found within the relevant section of the TCRM guidance.