How to protect your business from tax risk and controversy

Podcast host Susannah Streeter welcomes Luis Coronado, EY Global Tax Controversy Leader, Fiona Moore, EY Oceania Tax Controversy Leader, and Bryon Christensen, EY US Tax Controversy Leader.

Together they discuss why global businesses should consider introducing a robust tax governance to manage what may look like a new era of tax risk and controversy, which is resuming post-pandemic. 

The 2023 EY Tax Risk and Controversy survey includes many key findings, highlighting the urgency for businesses to take action. Eighty-four percent of respondents said an approved global framework for tax risk and controversy management would add either some or significant value to their business during the next two years. 

More than six in 10 surveyed say executive leadership rarely or never involves their tax functions in significant changes to existing activities, such as business model changes, new products, and new services. This increases the risk of unexpected tax exposure for those activities. Then there's the growing number of audits to deal with. The tax leaders surveyed expect these to grow by around 80% in the next couple of years. But the overall picture of ongoing disputes is still opaque in lots of companies. 

In this episode of Tax and Law in Focus, our panel delivers plenty of key takeaways to help companies be proactive and take the necessary next steps confidently.

Key takeaways:

• 75% of companies do not have complete visibility into their tax controversies and 50% do not keep current tax risk documentation. This is too risky in the new tax environment.
• Organizations should consider improving their internal connections. They should make sure tax has a seat at the table. 
• A razor-sharp focus on data is key. The data has to be trusted and it has to be replicable. 

For your convenience, full text transcript of this podcast is also available. Read the transcript.