Managing tax risk involves proactive strategies to ensure compliance and optimize tax outcomes. Here are some ways business leaders can manage tax risk:
- Engage Tax Experts: Hiring or consulting with tax professionals can provide specialized knowledge and help navigate complex tax regulations. - Regular Audits: Conducting regular internal audits to ensure accurate reporting and compliance with tax laws. - Training and Education: Providing ongoing education and training for the finance team to stay updated on the latest tax regulations and best practices. - Strategic Planning: Incorporating tax considerations into strategic planning to align business goals with tax efficiency.