Tax compliance management systems
Why should someone have a tax compliance management system?
Tax evasion is a crime in Germany and can be punished with up to 10 years in prison. This also applies to people who act on behalf of a company, e.g. as a managing director or board member. In addition to D&O insurance, a tax compliance management system can help to protect those responsible if something goes wrong. If you can then prove that you have not acted deliberately and have introduced procedures to ensure that the company complies with the rules, you may get off lightly.
According to the Federal Ministry of Finance, the following then applies: “If the taxpayer has introduced an internal control system that includes the fulfillment of tax obligations, this may indicate that there is neither intent nor reckless understatement of taxes.” If a serious mistake has been made, the chances of directors and managers getting away with no penalty or with reckless understatement of tax (which is usually only punishable by a fine) are much higher. A tax compliance management system protects those responsible and helps you to fulfill your monitoring function.
- What is a tax CMS?
- Who needs a tax CMS?
- Basic elements of a tax CMS
- Audit of a tax CMS
- Advantages of a tax CMS
we have compiled for you on an information page for you.
How can we help?
Benefitax supports you in setting up your individualtax compliance management system. We can either support the responsible person in your company in setting up the system or – if you provide us with sufficient information and documentation – we can set up a complete tax compliance management system for you.
If we were not involved in the preparation, we can audit your tax CMS and prepare an audit report on the results, which you can use for your marketing and sales support. The scope of the audit can range from a pure adequacy audit as an absolute minimum to an effectiveness audit, which is more intensive and therefore preferable.
