Justice, Equality and Tax Law

S. 4961. Introduction

A company’s business model is dynamic as is the design of the tax policy system in each country. With the change into a more modern business model, the tax system framework certainly follows and adapts to these changes. As a result of business changes and the expanding velocity of change, the tax function must operate in an increasingly uncertain environment. Notwithstanding, when a company’s “front end” fails to cope with the new business environment’s problems and prospects, the tax function may have an even bigger challenge in managing the tax risks and opportunities that follow.

Besides that, the complex tax system is also one of the impetuses for companies to improve their tax governance through enhanced tax management. Complexity in the tax system, however, makes it difficult for taxpayer’s to operate their internal tax control system. On the one hand, it could lead to the non-compliance behaviour such as fulfilling the formal provisions of tax obligations in an untimely and incomplete manner or by supplying inaccurate data. On the other hand, it could increase the compliance costs that will affect decision-making and resource allocation. Moreover, all tax admin...