This is how Skat wants to be in control in 2022

According to a previous study by the Court of Auditors, tax does not have sufficient control. In its new Annual Plan, the tax authorities announce a number of measures to improve internal control.

In a responsibility survey 2020 Financial and Government Debt from the Court of Auditors (ARK), the auditors wrote that the management of Tax and Customs does not yet have the correct information about their own performance. “Tax and Customs Administration still have a great deal of work to do to enable business operations to collect and collect taxes,” ARK concluded. ‘This includes improving management information, modernizing information supply, commitment management and performance statements.’

Also read: Step-by-step plan for ongoing monitoring and ongoing audit

Process description

In its Annual Plan, Skat recognizes that the organization has insufficient control and management, and that the risks of all processes and systems are not transparent. One of the spearheads for 2022 is therefore to put the process descriptions in order. ‘We are putting in extra capacity to get the process descriptions in order via the AO / IC project,’ the annual plan states. ‘If we discover too many vulnerabilities in the way processes run, we come up with suggestions for improvements to eliminate this vulnerability. Where possible, we will implement these changes immediately. ‘

This process will take years because the tax authorities have a wide range of processes at their disposal. That is why Skat started the most risky processes last year. ‘A complication to be overcome in managing the processes is that we need to strengthen the necessary knowledge about GDPR and information security, and that the labor market for this thesis is very tight.’

Also read: The added value of internal audit

In control declaration 2023

The first declaration on internal control, In Control Statement (ICS), should be ready by 2023. ‘The first ICS will then deal with the situation by the end of 2022 and an ever-limited set of objectives. We will mainly focus on the management of our financial processes and controls as set out in a ‘Financial Control Framework’. We will expand ICS in the following years. We are transparent and realistic. Transparent about where we still need to improve. Realistic about what we can demonstrably achieve. ‘

Focus areas for improving management

These are the focus areas that Skat is looking at this year to improve management:

1. Management information The MI / RM program will run until the end of 2022 for this purpose. By the end of 2021, the program will have completed the management information for a large part of the chains. For a number of chains, the program will continue into 2022. Efforts are aimed at implementing the necessary measures in 2022.
2. Responsibility management For the past two years, ARK has found that the structure and existence of liability management and the issuance of income statements are satisfactory. However, the effect cannot yet be sufficiently demonstrated. Internal controls are performed to demonstrate operation.
3. Purchase performance statements
4. M&O policy (including gift and inheritance tax) A multi-year program has been set up for this purpose. At the earliest, we will be able to demonstrate the effectiveness of the actions that we will take in 2022 in 2023.
5. Change management IT systems (test procedures) In 2021, Tax has tightened up on the description of the change management procedure in a number of chains. The detailed description of the processes will be completed by the end of 1. quarter 2022 so that operations can be demonstrated during 2022.
6. IT management logical access security We want to prevent points of attention from becoming imperfections. That is why we monitor the measures in these three areas periodically and in a timely manner.
7. Internal tax control
8. The lack of sufficient insight into the economic aspects of the IT landscape

Are you already following cm: on Linkedin? This way you stay even more informed about the latest updates and you have the chance to respond to articles. This is how we stay with cm: informed about our readers, and we can respond more to their wishes.

Follow CMWeb on LinkedIn!

Leave a Comment