Strategies, approaches and models

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Strategies, Approaches, and Models

A comprehensive tax strategy should encompass all applicable taxes and key business locations, ensuring alignment with the overall business strategy. The tax strategy document must also include guidelines for acceptable tax planning practices, which are further elaborated in a Tax Planning Policy.

When devising this strategy, several critical features should be considered, including:

• Likelihood of Tax Authority Challenges: Assess the potential for disputes with tax authorities and the possibility of litigation.
• Risk of Adverse Media Coverage: Evaluate the potential for negative press related to tax matters.
• Impact on Tax Authority Risk Ratings: Consider how the strategy might influence the organization's risk rating with tax authorities.

The tax strategy document should be supported by a Tax Function Framework, which outlines the roles and responsibilities of the tax function, as well as a Tax Policies document that details the specific policies developed and utilized by the tax function.