With a rapidly and continuously changing tax environment and a heightened focus on sound corporate governance, South African companies are facing the necessity of dealing effectively with corporate risk of a new sort: managing tax risk.
This includes effective tax planning for the best benefit of the organisation to avoid lost opportunities whilst ensuring full compliance with the law in all areas of business.
According to Corlie Hazell, national director of Tax Accounting and Risk Advisory Services at Ernst & Young Advisory Services, the 2006 global Ernst & Young Tax Risk Management survey has indicated that, for South African companies, there is a disproportionate amount of tax time invested in tax compliance.
The major driver behind the focus on compliance is the increased complexity of tax legislation coupled with the presence of an efficient and effective, yet often considered to be unduly aggressive tax authority in the South African Revenue Services (Sars).
full story from M&G here