Tax control frameworks: an international perspective

Tax control frameworks (TCFs) are increasingly seen as an essential tax management and compliance tool for businesses of all sizes. Around the world, tax authorities are taking a stricter approach to taxation matters. At the same time, organisations like the OECD and the EU are introducing new guidelines and regulations to strengthen corporate compliance, including international taxation frameworks.  

Taxation is also increasingly under the spotlight as part of the heightened focus on ESG factors (environmental, social and governance) when monitoring and assessing corporate performance.  

What is a tax control framework, or TCF? 

TCFs are a step-by-step roadmap for ensuring an organisation’s tax risks are known and controlled, that tax matters are managed efficiently and transparently, and that the company and its senior executives are protected from the risks of non-compliance.  

Crucially, these benefits not only apply in a company’s own domestic market, but also in any international markets it operates in. In fact, for companies that operate in one or more foreign markets, each with their own taxation regimes, the tax risks are likely to be higher, and the need for a tax control framework even greater. 

Global network of TCF expertise 

This is why, at Forvis Mazars, we have strengthened our global tax practice by introducing a cross-border tax control framework capability. This means that no matter where in the world a company is based or which foreign markets it is active in, it can leverage our global TCF expertise to gain total peace of mind over its taxation affairs in all the markets where it is present. 

So, for example, a company headquartered in the Netherlands that has a subsidiary in Brazil, can work with us to develop a tax control framework that considers Dutch, Brazilian and international taxation standards. Or maybe a company in Singapore wants to do business in Spain. With the support of our global network of TCF specialists, it can develop a framework to manage their taxation matters in compliance with the relevant regimes in both countries, as well as with international taxation frameworks, such as OECD and COSO guidelines. 

Forvis Mazars expertise includes TCF teams over 50 key jurisdictions, including China, Malaysia, USA, Brazil, Argentina, Nigeria, South Africa, UAE, India – and we regularly share knowledge and best practices between our network of TCF specialists across the globe. This helps to ensure, among other things, that understanding, and insights gained in a market with a higher level of maturity in tax compliance matters are shared with colleagues in other markets.  

It also means that, in the Dutch example above, the Brazilian subsidiary can be kept up to date with the evolving taxation regime in the Netherlands, which, under Dutch taxation regulations, it has to comply with, as well as in its own domestic market. 

Snapshot of TCF priorities 

To further support companies around the world in strengthening their tax management affairs, we have launched our ‘TCF Quick Check’ tool. This provides an initial overview of the maturity of the tax processes and structures in an organisation and highlights any potential risks and weaknesses. As well as identifying priority areas for action, it can form the basis for follow-up discussions with one of our global TCF leaders.  

By developing and continually enhancing our global TCF capabilities, our aim is to reassure companies that no matter where they are based, by working with Forvis Mazars they receive the same high level of expert TCF guidance and support, tailored to their local regime but also fully in line with global frameworks and expectations. 

Discover more on how a tax control framework solution can benefit your business by visiting our dedicated TCF homepage, which has a collection of resources to support you on your tax journey.