1. THE ROLE OF RISK MANAGEMENT IN VAT ADMINISTRATION
GROUP BOTCHWAY

2. 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

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

4. 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

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

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