Risk Management Strategy in Poland Rome 15 – 16 March 2005

THREATS DESIRABLE SITUTATION

CONSEQUENCES POSSIBILITY RISK

Disloyal/ Frauds Occasionally disloyal Loyal taxpayers Types of taxpayers

Risk management The implementation and application of an External Risk Management Strategy should lead to higher level of compliance which will increase the total tax revenues, particularly in a long-term perspective.

Risk Management Risk Management is a structured and uniform way : how to deal with risks and related issues to be able to take the right decisions, how available resources should be used to reach one or several desirable situations.

Identification and analysis of risk areas Elimination Reduction Acceptance Tax audit Information System changes Risk assessment Priorities of actions Implementation/ selection Evaluation Risk management model Object Subject

Identification and analysis of risk areas The identified risk areas could be: specific types of tax fraud (carousel fraud), groups of specific taxpayers (traders failing to register to pay VAT). Identification and analysis

List of identified risk areas „Gross list” missing traders understating VAT liabilities showing a turnover below the VAT registration threshold etc. Identification and analysis

Direct losses of tax related to the risk area Negative consequences Indirect losses of tax related to the risk area Other negative consequences Risk assessment

Priorities of actions the risk can be eliminated the risk can be reduced the risk has to be accepted for the time being Priorities of actions

Implementation System changes Information Control Combination of actions Implementation

Evaluation Which effects on the risk area have been achieved? Could it been done more efficiently in terms of methods and organization? Are there any changes in taxpayers’ behaviour? Evaluation

National Guidelines Regional Guidelines National Compliance Plan Regional Compliance Plan National Implementation Plan Regional Implementation Plan