Tax Risk Management reloaded
Effective relief of the balance sheet from tax risks
An upgrade for your tax risk management toolbox lies in sight: tax insurance can be used to effectively eliminate tax risks that cannot yet be shown in the balance sheet and thus avoid high and, above all, unplanned (additional) tax payments. So instead of reserving funds, you can use them to benefit your business.
Example: outsourcing tax risks as part of tax risk management
As part of tax risk management, all potential and realised tax risks must be recorded and evaluated, and appropriate measures taken to monitor and manage them. As long as the amount or due date of a tax risk has not yet been determined in a tax assessment notice, no tax provisions can be recorded. Nevertheless, risk provisions must be recognised for identified tax risks. Tax insurance can be an effective risk management tool for this, allowing various risks to be systematically and specifically transferred to insurance companies for the purpose of relieving the balance sheet and liquidity.
Typical practical cases:
legal uncertainties in relation to tax risks from tax planning, intragroup restructuring, ongoing business or changes in the law
