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Joubert Botha The South African Insurance Industry Survey 2016 | 27
Director, Is Tax Risk Management
Tax Management Services
Tel: +27 83 456 7734 important
Email: joubert.botha@kpmg.co.za
Businesses have not always given Tax Risk Management the attention it merits.
There have been a number of developments, both locally and internationally,
that resulted in Tax Risk Management gaining momentum insofar as importance is
concerned.
The profile of tax Stakeholders want to know “what is an organisation’s tax
The profile of tax has become much more visible not only contribution?” and “what is the organisation giving back
from an investor and board perspective but also from a tax to the country and community in which it operates?”.
authority and public perspective. This is even more prevalent Tax transparency has been receiving a lot more airtime in
in South Africa where we have seen a declining economy and South Africa. In the 2016 Budget Speech, Minister of Finance
increased revenue collection targets. There are a significant Pravin Gordhan stated that:
number of taxes that companies are exposed to and the tax
values are enormous. In some cases the tax bill (including “With effect from 2017, international
direct taxes, indirect taxes and employees taxes) that an agreements on information sharing will
organisation should manage could be as much as 40% to enable tax authorities to act more effectively
50% of the organisation’s turnover. This makes the reason against illicit flows and abusive practices
for the heightened interest in Tax Risk Management more by multinational corporations and wealthy
apparent. individuals.”
Tax transparency
Tax has acquired moral, ethical and social dimensions that
are seldom discussed or considered. In particular, there has
been a growing demand by external stakeholders for greater
tax transparency on all levels including the taxes paid and
the way in which taxes are managed within an organisation.
