A compliance risk is anything that can hinder the payment of the correct tax at the right time. To be more specific, it is anything that prevents taxpayers from fulfilling their basic tax obligations. which are to:
- Register with the tax administration when required
- File tax declarations on time
- Accurately report tax liabilities
- Pay the tax due on time
Risks of non-compliance include, but are not limited to:
- Deliberate evasion
- Ignorance about how to compute obligations
- Poor design of calculations
- Hard access to clear guidance
- Lack of training of tax officials
Start by:
- Trying to understand the underlying causes of non-compliance
- Monitoring performance of the strategic plans
