THE ROLE OF RISK MANAGEMENT IN VAT ADMINISTRATION GROUP BOTCHWAY

Challenges by TYPES OF RISKS OPERATIONAL RISKS STAFF CAPACITY: LACK OF KNOWLEDGE AND CAPACITY OF VAT OFFICERS; UNSTANDING IN VAT ADVANCEMENT OF TECHNOLOGY: TELECOMMUNICATION, E-COMMERCE, OIL & GAS INDUSTRY, HOSPITALITY, FINANCIAL INSTITUTIONS eg. BANKS LOW AUDIT COVERAGE: RATIO OF TAX AUDITORS TO TAXPAYERS INTEGRITY ISSUES

OPERATIONAL RISKS cont’d Inadequate Remuneration of Tax Administration Inadequate automation: Not serving all tax administration needs such as Registration, Risk identification, etc.

Compliance risks RISK TAXPAYER TAX ADMINISTRATOR ACCESS TO TAX EDUCATION/ REGISTRATION NO OR LOW LEVEL OF INTEREST ASSUME TAXPAYER KNOWS RESPONSIBILITY WRONG REPRESENTATION EDUCATION NOT ADEQUATE MULTIPLE REGISTRATION ABILITY TO REGISTER MANY COMPANIES LACK OF CHECKS ON THE BACKGROUND OF BUSINESSES TIMELY FILING/ PAYMENT/ACCURATE REPORTING UNDERSTANDING THE CONCEPT OF FILING/PAYMENT FAILURE TO UNDERSTAND THE TAXPOINT INABILITY TO TIMELY FOLLOW UP ON NON- COMPLIANT CASES INABILITY TO TIMELY FOLLOW UP ENFORCEMENT CASES

SOLUTIONS TRAINING AND CAPACITY BUILDING OF STAFF ADEQUATE TAXPAYER:OFFICER RATIO ENFORCING CODE OF ETHICS FOR STAFF AND APPLYING SANCTIONS

PROPOSALS FOR CAPACITY BUILDING AUTOMATION AND INTEGRATION TRANSFER PRICING SHARING OF EXPERIENCES – EFDs STUDY TOURS EXCHANGE PROGRAMMES