Tax Compliance – Problem or not?
Tax Compliance is the name given to an internal control system set up to ensure the observance of tax obligations. This is about much more than just tax declarations: for instance, it includes the auditing and documentation of tax exemptions involving intra-community supplies, instances concerning Section 13b Turnover Tax Act (UStG), and observing the general accounting obligations part of a Tax Compliance Management System (Tax CMS). The tax authorities differentiate between tax fraud and tax evasion and a simple correction depending on whether a Tax CMS has been set up and is properly functioning or not. The German Supreme Court (BGH) also decided in May 2017 that a Tax CMS can reduce the penalty when assessing the size of a penalty. We will be happy to assist you in the configuration or auditing of a Tax CMS of this kind taking into consideration the "IDW (Institute of Auditors) practical recommendation 1/2016 on the configuration and auditing of a Tax Compliance Management System pursuant to IDW PS 980".