Opti.Tax now also enables efficient risk management for tax processes

Nipping allegations of tax evasion in the bud: hsp Handels-Software-Partner GmbH is expanding its taxonomy software Opti.Tax with a Tax Compliance Management System (TCMS). The new module was developed in collaboration with the auditing and tax consultancy group W+ST. With this new feature in Opti.Tax, advisers and businesses are able to put in place the best organisational measures to ensure that tax obligations are met correctly and on time.

„A flawed or non-existent tax compliance management system can prove costly for companies, particularly as senior management may be held personally liable if allegations of tax evasion arise,“ says Andrea Treib, a member of the W+ST Executive Board: „With this new module, tax advisers gain an efficient tool to ensure their clients are in the clear when it comes to tax law.“

Errors can, in principle, occur when fulfilling tax obligations, but they must be rectified. The distinction between correctable errors and tax evasion is often problematic. If a tax control system is in place that is designed to ensure tax compliance and accuracy, the tax authorities regard this, in the event of breaches, as evidence that refutes the allegation of tax evasion. W+ST has therefore, since 2016, developed a framework that enables small and medium-sized clients to assess their tax processes efficiently and, consequently, to optimise them accordingly.

In order to carry out this tax risk assessment and documentation as efficiently as possible, W+ST implemented the concept it had developed using standard software. However, as requirements have increased, this solution has reached its limits, prompting the audit and tax consultancy group to draw on the technical expertise of hsp Handels-Software-Partner GmbH. The concept was technically implemented in Opti.Tax, combining W+ST’s specialist expertise with the technical know-how of hsp, which has been setting standards with Opti.Tax for years, particularly in the preparation of procedural documentation.

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The result is a customisable, risk-based TCMS that assesses business processes and can protect companies of all sizes from allegations of tax evasion during tax audits. The module enables an efficient risk assessment of all tax-relevant processes using a questionnaire based on guidelines issued by the tax authorities and the Institute of Public Auditors in Germany (IDW). Predefined answer options are assessed using a points system. Once the questions have been answered, the risk assessment is carried out directly within the software. From the upcoming 20.3 release onwards, control measures and their frequency can also be assigned directly to staff. This not only allows for the documentation that secure processes are in place and are being monitored, but also tracks the completion of these controls.

The module follows a top-down approach, as many companies have already implemented and documented control processes. Consequently, it is often not necessary for consultants to map out all tax-related processes from scratch, let alone implement them. The existing processes are assessed in full and areas for optimisation are identified.

hsp Handels-Software-Partner GmbH supports tax advisers in using Opti.Tax Support through training courses . If you have any technical queries regarding the TCMS design, W+ST will be happy to assist.