Tax Controversies On Rise

Tax controversies between companies and Canadian tax authorities are not uncommon and are on the increase, says a Canadian tax governance survey by Ernst & Young. The survey shows that tax leaders still hold primary responsibility for executing tax risk management. Ninety-five per cent of tax groups, 91 per cent of finance departments, 79 per cent of the C-suite, and 60 per cent of risk management committees are involved in managing tax risks in their organizations. However, 56 per cent of non-tax business unit leaders are unfamiliar with tax risk management policies. Half of survey respondents only report tax risks as needed, or never. Thirty-eight per cent of respondents reveal a moderate to significant increase in boardroom discussions concerning tax risk transparency and reporting in 2012. Fifty-four per cent of participants plan to improve existing tax risk policies and procedures within their organizations.