Cooperative Compliance: Tax Risk Management and Monitoring

Prompted by the global economic crisis, the attention for tax compliance behaviour of large businesses increased significantly in recent years. Worldwide, stakeholders request more tax transparency from large businesses. Tax authorities use 'transparency' as a starting point in so-called cooperative compliance strategies. Tax risk management seems to be an indispensable factor in these strategies. We note that both in the Netherlands and abroad the design of a so-called tax control framework by businesses as well as its use by tax authorities does not seem to be clear. In this contribution we seek to reduce this obscurity around the tax control framework by focussing on the element of 'tax monitoring', for which we use the Dutch horizontal monitoring program as a case study.