TCRM3100 - The Business Risk Review (BRR+): Overview
The Business Risk Review (BRR+) is the process by which we evaluate and discuss with the customer where we think they sit on the compliance spectrum and in particular whether they meet the criteria for Low Risk. It is based on the principle that, while factors such as the size and complexity of a business create their own risks and can make it more challenging for customers to comply with their tax obligations, even the largest and most complex businesses can be classified as Low Risk if they mitigate these risks to an acceptable level through their behaviours. The results of the BRR+ inform both our overall approach to a customer and the focus of any future Risk Assessment activity.
The BRR+ will take place at least annually for customers who are not Low Risk. For Low Risk customers a BRR+ will, in general, be carried out on a three year cycle.
The BRR+ process involves the following steps:
- Considering the landscape in which the business operates, and it’s potential impact on the inherent level of tax compliance risk the customer presents
- For each applicable tax regime, considering the effect of the customer’s behaviour on this inherent risk - does their relationship with HMRC, their Systems and Processes, Internal Governance and their Approach to Tax Compliance tend to increase or decrease this inherent risk
- Considering the overall risk rating of the business
- Agreeing the customer’s overall risk status
- Agreeing any action required to reduce the level of risk
The process is summarised graphically.