Business process management as a tax risk identification and management method

Abstract

In the current economic climate, corporate governance is a priority for enterprises globally. Corporate governance aims to create value for affected stakeholders. One way in which this can be achieved is through risk identification and management. Where risks are properly identified and managed, the threats posed to the achievement of enterprises’ strategic goals are mitigated. Tax is one of the aspects that create a need for the implementation of appropriate risk identification and management methods. Although prior research has been conducted regarding possible tax risk identification and management methods, very little is known about Business Process Management (BPM) as a tax risk identification and management method. This article contributes by using an exploratory case study to highlight that BPM can be a valuable risk identification and management method within the tax risk arena. BPM allows for risk identification and management of processes that cut across functional lines. Because BPM is process-driven, it accounts for process variances and can therefore be used as a tax risk identification and management method by any enterprise in relation to any tax type.