The management of tax risk represents one of the most sensitive corporate areas, as it is likely to have significant impacts both economically, in terms of penalties and higher taxes, and reputational, potentially disruptive even in the face of minor violations.

The implementation of an integrated system for the detection, measurement, management and control of tax risk (Tax Control Framework or TCF) enables companies to have an overview of their processes and related tax risks, as well as being the indispensable tool for accessing the Collaborative or Optional Compliance Scheme.

In this scenario, Tax Bridge’s professionals can support any business reality with customized services based on the needs and objectives of tax risk control.

The Tax Control Framework

Tax Bridge offers the following services on the definition of the company’s operational structure and related operational processes:

  • Analysis of control systems in place or, in their absence, the practices adopted in terms of risk control, which can provide a basis or support for the implementation of a TCF dedicated to tax risk. For example: Model 626, Model 231, SOX Model.
  • Efficiency of existing systems and integration with the TCF
  • Implementation of a TCF that complies with current regulations and is suitable in structure, complexity and resources, to the needs of the company and drafting of the document package.
  • Design, also with the support of dedicated tools, of a Tax Compliance Model (TCM), to manage the entire tax risk control process, from the identification of the risk to the controls put in place to mitigate it and which, together with the Risk and Controls Matrix (RCM), constitute the two supporting documents of the TCF.
  • Design and execution of second- and third-level controls, as part of the three-level control system provided for in the regulations.

Cooperative Compliance Regime

Companies interested in applying for admission to the Cooperative Compliance Regime are required to prepare an effective internal control system, accompanied by a standardized documentation package. In this regard, Tax Bridge offers the following services:

  • Analysis of subjective and structural admission requirements.
  • Submission of the application and preparation of the mandatory documentation package.
  • Support in the discussions with the Cooperative Compliance Office, in the preliminary phase (management of meetings and supplementary requests).
  • Ongoing assistance in post-admission discussions with the Cooperative Compliance Office for:
    • The determination of materiality thresholds.
    • The management of areas for improvement identified during admission and communicated at the opening meeting.
    • The planning of control activities reported in the annual communication.
    • The fulfillment of obligations for staying in the scheme.
  • Selection of available prior discussion tools to submit relevant tax issues to the competent office and benefit from the reward effects of admission to the Regime.

Optional Regime

The Optional Regime (Legislative Decree 221/2023) allows companies without the size requirements/subjective characteristics for admission to the Cooperative Compliance Regime to obtain the same benefits, with the voluntary adoption of a TCF that complies with the regulations.

For these companies, Tax Bridge professionals can offer assistance for:

  • Set up a sustainable TCF system, in terms of resources, and in accordance with regulatory requirements.
  • Draw up and submit to the Internal Revenue Service the documentation necessary for the exercise of the option and its maintenance.
  • Managing discussionspreceding and following the communication.

TCF’s certification

The certification of the TCF is one of the new features introduced by the reform of the Cooperative Compliance Regime and affects both companies that intend to file for admission and companies that choose the optional regime.

Our professionals meet the requirements to participate in the training courses to be implemented by the Orders to access the lists of certifiers for:

  • Carry out the activities of design verification and testing for the issuance of the first certification, required at the time of application for admission or notice of exercise of the option.
  • Attest to theoperational effectiveness of the model adopted for certification update (at least every three years).

Why choose us?

Tax Bridge professionals have many years of experience in tax risk management, gained both in the Tax Administration (Cooperative Compliance Office and Advance Pricing Agreements Office) and as consultants for companies of various sizes.

Thanks to our knowledge of the regulations, mechanisms, and practical and operational aspects related to the construction and validation of the internal control system, we are able to anticipate all possible legal, organizational, and communication issues that may arise during the TCF adoption process, optimizing its benefits and making the path to admission to the Regime swift and smooth.