02 — Capability · BC-240
Tax
Pay the right amount of tax in every jurisdiction the enterprise operates in, on time and with the position defensible, while structuring affairs so no more is paid than the law requires.
- Corporate Tax
- Tax Compliance & Planning
- Tax Function
In scope
- Income tax, indirect tax and withholding compliance across all jurisdictions
- The tax provision in the financial statements and the deferred tax behind it
- Transfer pricing policy and the documentation that supports it
- Tax planning for transactions, structures and incentives
Out of scope
- Preparing the financial statements the provision sits in (see BC-210)
- Payroll tax withholding at the point of payment (see BC-350)
- Customs classification and duty on physical goods movements (see BC-660)
Realized by · 0
- No product in the catalog yet.
Used in · 3
- Lead-to-Cash · 05 Invoice via BC-240.30
- Record-to-Report · 03 Close the Period via BC-240.50
- Record-to-Report · 05 Report & Disclose via BC-240.20
Build it · 0
- Nothing in the library points here yet.
Decomposes into · 6
- BC-240.10Tax Strategy & PlanningShape where and how the enterprise does business so its tax cost is as low as the law allows, with the appetite for risk set by the board rather than by the most creative adviser.
- BC-240.20Direct Tax ComplianceFile accurate income tax returns for every entity in every jurisdiction, pay what is due on the dates it is due, and keep the working papers that show how each number was reached.
- BC-240.30Indirect TaxCharge, collect, recover and remit the sales, value-added and excise taxes that ride on every transaction, correctly at the moment of the transaction rather than by correction later.
- BC-240.40Transfer PricingPrice the goods, services, financing and intangibles that move between group entities so that each jurisdiction gets an arm's-length share of profit and the documentation proves it.
- BC-240.50Tax Accounting & ProvisionCompute the tax expense, current and deferred, that the financial statements carry, and reconcile it to the returns eventually filed so the two tell the same story.
- BC-240.60Tax Audit & ControversyRespond to tax authority inquiries and audits with the facts and the argument, and resolve disputes at the lowest level and cost that protects the enterprise's position.