Create checklist for Risk Assessment for Tax Clearance process of Internal Revenue Commission, PNG
1. Preparation Phase
- Determine the objectives and goals of the assessment.
- Identify specific risks related to the tax clearance process.
- Outline boundaries for the assessment, including timeframes and areas of focus.
- List all parties affected by the tax clearance process.
- Engage relevant departments such as finance and legal.
- Establish communication channels for ongoing stakeholder involvement.
- Collect tax returns and financial statements.
- Obtain relevant laws and regulations governing tax compliance.
- Review prior audits and compliance reports for historical context.
2. Risk Identification
- Review historical data on tax clearance issues.
- Consult with stakeholders for insights on risks.
- Analyze trends in tax compliance and clearance failures.
- Document risks such as fraud, errors, and omissions.
- Evaluate common taxpayer non-compliance patterns.
- Assess the impact of misinformation on taxpayer actions.
- Identify psychological factors influencing taxpayer decisions.
- Monitor changes in taxpayer demographics and behavior.
- Research economic indicators affecting taxpayer ability to pay.
- Examine legal changes influencing tax regulations.
- Consider political factors that may affect tax policies.
- Assess the impact of technology on tax compliance.
3. Risk Analysis
- Review historical data on similar risks.
- Consult experts or stakeholders for insights.
- Use a scoring system to quantify likelihood.
- Document findings and assign risk ratings.
- Consider environmental factors affecting risks.
- Identify consequences for each risk if realized.
- Analyze financial, operational, and reputational impacts.
- Use case studies to illustrate potential effects.
- Assign impact scores for quantification.
- Summarize findings in a report.
- Combine likelihood and impact scores for each risk.
- Create a risk matrix to visualize prioritization.
- Focus on high-impact, high-likelihood risks first.
- Review with stakeholders for consensus.
- Update the risk profile regularly as conditions change.
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