WHAT ARE TAX COMPLIANCE MANAGEMENT SYSTEMS?
Tax compliance means ensuring in a systematic way and for preventative purposes that tax requirements and tax obligations are met, and corporate guidelines are adhered to. BBH’s Tax Compliance Management System is the go-to tool for avoiding compliance risks which are punishable by penalties or administrative fines. Taking a holistic approach, we systematically support you through the entire process of implementing your customized tax compliance management system.
BBH’s Tax Compliance Management System is an IT-based management solution utilising Schleupen AG’s governance, risk and compliance software solution R2C_GRC, into which the list of obligations is integrated. The software is designed to allow for the depiction of the entire organisational structure of a company or a legal person under public law, enabling clear allocation of responsibilities and detailed description of tasks and controls. Workflows are defined, ensuring a consistent quality of control across all levels of a company or legal person under public law – from first-level employees to top-level managers or mayors.
BBH’s Tax Compliance Management System is cloud-based and need not be integrated with the IT environment of your company or your legal person under public law. You simply need an HTML5 browser to access the tool.
WHY A TAX COMPLIANCE MANAGEMENT SYSTEM?
Nowadays, tax audits are generally carried out with more scrutiny than in the past and are likely to lead to far more legal consequences. Taxable persons are increasingly confronted with allegations by the tax investigation authorities. The decisive issue is how to assess under procedural law any facts or circumstances brought to light by the tax audit that have not been stated in the tax return at all or stated incompletely. Is the correction of the tax return to be made
- still a correction (not relevant under criminal law) pursuant to sec. 153 Fiscal Code of Germany (Abgabenordnung – AO)
- is it already associated with an allegation under criminal law?
With its administrative instruction on the application of sec. 153 AO of 23/05/2016 (Anwendungserlass zu § 153 AO), the Federal Ministry of Finance answered this question, building a bridge towards good faith. According to this internal instruction, the establishment of a tax compliance management system (Tax CMS) can be regarded to constitute evidence against conduct subject to criminal tax charges, allowing for the application of the provision on the correction of returns pursuant to sec. 153 AO.
BENEFITS OF BBH’s DIGITAL TAX COMPLIANCE MANAGEMENT SYSTEM
You are looking for a one-stop shop solution? We are the perfect fit.
BBH’s Tax Compliance Management System combines relevant content with a software system. The result is a highly efficient tax compliance management system for your company.
- Identification of relevant tax processes and inferring legal obligations and controls
- A list of obligations developed by BBH comprising tax obligations and controls with regard to income tax, value added tax (VAT), wage tax and social security contributions as well as electricity and energy tax
- This list is being expanded by BBH so as to include other areas of law relevant in terms of compliance (e.g. data protection and labour/employment law)
- The tax modules can be booked and accessed separately – as the need arises
- Regular updates of the list by BBH
- Responsibilities and functions are allocated in line with the company’s organisational structure
- Control activities are an integral part of company workflows and are defined by a set of rules
- Consistent quality of controls assured by a digital feedback system
- Management of measures in the event of irregularities and compliance violations
- Simple, timely documentation
- Ensuring that stored data cannot be revised/modified
THE CONTENT OF BBH’s DIGITAL TAX COMPLIANCE MANAGEMENT SYSTEM
The list of obligations forms the core of the tool, comprising the processes which are relevant for you and which have been structured and integrated with a control mechanism by the tax experts of BBH. This means that a time-consuming collection and recording of processes prior to the implementation is no longer necessary.
This list of obligations is continuously being updated by the BBH tax experts. So you are always up to date without any effort on your part. The list is a perfect fit for both companies and legal persons under public law.
With BBH’s Tax Compliance Management System in place, you are fully prepared for the next tax audit. This way you and your company maintain the possibility of retroactively correcting any mistakes in the tax return without facing criminal consequences. Our tax modules encompass
- income tax (corporate tax and trade tax);
- value added tax (VAT) (for legal persons under public law in accordance with sec. 2b Value Added Tax Act (UStG));
- wage tax and the social security law;
- Fiscal Code of Germany;
- and – if required – electricity and energy tax.
You decide which modules to choose. It is possible to start off step by step with individual modules or implement all the modules in one go. In workshops, we will adjust BBH’s Tax Compliance Management System to your specific circumstances. So in the end, you will have a solution tailored to your needs.
Currently, we are successfully rolling out the tax module to our clients. We are going to expand the BBH Compliance Management System step by step to include other areas of law relevant for compliance. For example, the module on data protection is about to be introduced to the market. Our aim is to provide you with a uniform IT platform offering a large variety of possible applications.
Tax CMS - im Jahr 2023 ein "must have"
Erfahrungsberichte zum bbh tax cms
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