Evolving Policies Impact Board Oversight of Tax Risk

A series of recent evolving tax policy developments may prompt boards and their companies to revise their tax risk oversight policies, procedures, and governance in order to minimize tax exposures and to avoid incurring new penalties for noncompliance.

While tax rules have changed considerably since last November, several key developments underscore the trend toward more taxpayer transparency and stronger enforcement of the rules. KPMG LLP Public Policy Alert No. 10 discusses how it is critical that a company's tax risk governance and management process is an ongoing topic of discussion at board meetings.

Leading governance practices include a review of the mission and strategy of the tax department; the tax profile of the entity; the process by which tax uncertainties are identified, documented, and evaluated; the procedures that exist to integrate tax analysis into business decisions; the adequacy of tax department personnel; and the process to monitor major public policy developments.