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HMRC internal manual

Tax Compliance Risk Management

From
HM Revenue & Customs
Updated
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Managing our relationship with large business customers: Definitions

  • Tax compliance risk - this is a risk which, if it transpires, results in the incorrect tax being paid to, or reclaimed from, the Exchequer.
  • Tax Compliance Risk Management Process - the process by which we work with individual large business customers to identify and mitigate their tax compliance risk. This process includes the Business Risk Review, Risk Assessment, Risk Working and monitoring customers’ business performance and developments.
  • Business Risk Review - the process by which HMRC evaluates and discusses with the customer where they sit on the compliance spectrum and whether or not they are ‘Low Risk’.
  • Risk Assessment - the process whereby particular sources of information e.g. tax returns are reviewed by HMRC to establish whether there is a specific tax compliance risk.
  • Risk Working - activity HMRC undertakes to address specific significant tax risks.
  • Low Risk customer - a customer who has an open and transparent relationship with HMRC, effectively manages their own tax compliance risk and who we trust will not engage in tax planning which HMRC believes does not support genuine commercial activity.