TAX COMPLIANCE, A SOLUTION TO THE CURRENT PROBLEM OF OPERATIONAL TAX RISKS.

Abstract

Tax compliance is a necessary tool to be able to evaluate the possible tax risks of a company and,
if necessary, design strategies through recommendations, try to avoid these contingencies in the
near future. It is a process carried out by a professional called Compliance Officer who must have
sufficient technical and professional knowledge in tax matters, but especially that he has an ethical
formation and values supported by a solid tax culture. This will serve to validate that operations
carried out by a company are strictly in compliance with all the current legal and tax regulations.
Compliance is a process based on a strategic planning scheme focused on all areas involved
in tax matters: taxes, social security contributions, labor aspects, prevention of money laundering
and terrorism financing and of course in criminal matters.Being an innovative tool, there is still a lot of ignorance in terms of its application and really
unknowing what its advantages are. The present paper shows precisely these ideas under the
scheme of a planning model designed to diagnose, prevent and correct companies’ activities in
compliance with laws and combat their negative effects such as tax avoidance.