The public debate with respect to tax evasion or tax avoidance has significantly inceased in recent years. Banks may face severe reputational risks when their clients do not act with integrity and adhere to the banks values when managing tax afairs. Management of tax integrity risks by banking clients is therefore a key topic for banks operating in the Netherlands.
Under the Dutch Financial Supervision Act, banks operating in the Netherlands are required to take measures to guarantee the integrity of the bank and the financial sytem.
The Dutch Central Bank (DNB), as super visory authority, assesses whether banks are adequately equipped to recognize and manage tax integrity risks by their clients as part of the Systematic Integrity Risk Analysis. The DNB published an important document on good practices for banks when managing these tax integrity risks.
Banks need to follow a risk based approach to determine the tax integrity risks by their clients.
DNB leaves it to the bank to determine which tax integrity risks are within the tax risk appetite of the bank and therefore acceptable. Tax integrity risks have to be identified in a sytematic way and actively managed in key processes like the client due diligence and transaction monitoring processes
We can assist banks to (further) develop and integrate client tax integrity risk management in the organization.
Grant Thornton follows a proven approach to provide banks with assistance and support during one or more of the following actions that banks should take to manage the tax integrity risks of their client portfolio. Download our brochure to see our full approach on the management of client's tax integrity risks.