Table of ContentsIntroductionRisksConclusionIntroductionTaxation is an act, process or means by which the sovereign (independent state), through its legislative body (legislative branch of government) , demands revenue in order to support its existence and achieve its legitimate objectives (Scribd, 2011). It is taxed under different types of levies: capital gains tax, income tax, inheritance tax, VAT, corporate tax and property tax. Taxes are levied by the government on the public for strengthening the economy and are invested in improving infrastructure, funding education and the NHS. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”?Get an original essayTaxation has always been an important factor in the business sector. The development of new technologies has had an impact on the working atmosphere, visible through digital presence in the form of location, data and physical assets. With new technological advancements, tax authorities are striving to keep up by leveraging new business models and technologies. The rapidly changing tax landscape is having a broader impact on multinational companies in the way they conduct business. The changing tax landscape affects Base Erosion and Profit Sharing (BEPS). It aims to eliminate financial activities that reduce taxable profits through complex structures or withholding taxes at source. Although the action plan identifies a certain number of actions allowing a comprehensive approach to address the identified risks, the concepts of tax evasion and tax evasion are managed by the organizations. Tax avoidance is legal and is usually achieved by deducting business expenses, setting up a retirement plan, etc. Alternatively, tax evasion is the illegal practice of not paying taxes on income earned. RisksRisk is a possibility of threat or harm that could arise or occur. Tax risk is the possibility that tax rules will change, resulting in losses from higher than expected taxes (Spacey, 2016). There are four types of tax risks which are followed by: Tax-related reputational risk. Reputational risk is a risk that threatens the good reputation of a company or business which includes direct risk due to the company's action, indirectly due to the company's actions. employees or indirectly through other third parties such as joint venture, partners or suppliers (Investopedia, 2018). Companies generally tend to cut costs during a recession. However, at present, the tax burden (consequences of a specific tax on the distribution of economic well-being) for CEOs/boards of directors is increasing. With the increasing number of social media users, news channels and public opinions on tax affairs have an impact on business reputation. The PWC 2019 study indicates that increasing tax burden was named as the top business threat by 55% of CEOs in 2011 and 62% in 2012 in the 15th annual global CEO survey. It also says that corporate tax is only just over a third of the total tax rate, raising concerns among stakeholders and the public that if businesses had to pay a fair share of tax. As a result, the company's reputation is put at risk. on risk. It belongsIt is entirely up to companies to decide whether or not to publish financial tax information. This puts more pressure as it exposes financial activities, including their work ethics and operation. The tax system leads to a change in the opinion of the company by its customers, its suppliers or its employees. Reputational tax risk can be prevented by understanding stakeholders by aggregating communication of new procedures, conventions and projects in tax reporting and tax functions. dynamic changes such as new tax financial requirements and public interest. Determine which tax practices/terms are suitable for the business by communicating the total tax contribution. By having a tax plan and understanding information on international risks, management, inspection, performance and the tax resolution process with the agreement of the boards of directors.Operational risk linked to taxationOperational tax risk concerns the processes , the people and systems in place to manage tax risk and manifests itself as tax non-compliance risk (Www2.deloitte.com, 2016). It defines the relationship between tax, financial and other operational risks. The different types of tax operations depend on the tax risk which includes staff turnover, new and large projects, audit or internal control programs, etc. However, the relationship may push the resulting globalization to the obliteration of skills. Similarly, in the past, VAT had a low risk of failure due to the high number of people setting up the account; The finance team and tax team work as a team enabling localization and increased workforce efficiency. Operational tax regulation processes and controls technological means when necessary in order to maintain the reputation of regulators. Operational risks can be avoided by introducing a tax policy with a well-defined strategy supported by the company's board of directors and CEOs. By organizing global events or orientation keeping an overview of factors such as tax accounting, indirect taxes and tax reporting. It helps to achieve tax efficiency in the international market and improves financial objectives, resulting in better taxation. Replace or update accounting software with the right technologies. Legislative Tax Risk Legislative tax risk is the potential that government regulations or legislation could materially change the business prospects of one or more companies (Investopedia, 2019). This legislation raises the public image of the importance of government, while providing individual politicians with marketing tools. Legislative risk focuses the relationship between businesses and governments. The government has the right to intervene in the industry if companies are reluctant to follow regulations. There is a high possibility for the investor to suffer losses if the government passes the law. Risks can come in the form of specific taxes, sponsorships, new regulations and much more. It generally protects employee rights or free trade agreements allowing the industry to be less competitive with its external counterparts. Wal-Mart stores are one example of legislative risk. Higher customs duties imposed by foreign suppliers increased the cost price of goods, leading to a slight decline in sales. Investopedia, 2019 indicates that the organization has described certain risks.