TAX RISK MANAGEMENT STRATEGIES FOR MULTINATIONAL COMPANIES
Keywords:
Strategy, Management, Tax Risk, Multinational CompanyAbstract
Tax risk management is a central aspect for multinational companies operating in multiple jurisdictions with diverse tax regulations. The key to meeting this challenge is the implementation of a comprehensive and integrated risk management strategy. Key challenges include internal resistance to change, the need for cross-departmental coordination, and global communication issues. In addition, non-uniformity in tax monitoring and reporting can increase the risk of non-compliance, which in turn can potentially lead to legal sanctions. To overcome these challenges, companies need to focus on continuous training and skills development for employees. Investment in technology that supports tax risk management is also central, including data analysis tools and solid audit systems. Ensuring cross-departmental integration and efficient communication can help support a collaborative approach to tax risk management, strengthen transparency, and improve accuracy in tax reporting. The implication of this strategy is that multinational companies can minimise tax management risks and mitigate potential adverse legal sanctions. With the systematic adoption of such strategies, companies not only maintain compliance with tax regulations, but also strengthen their position in an increasingly competitive global business climate. Thus, an effective tax risk management strategy can be one of the critical pillars in the long-term success of multinational companies.
Downloads
References
Adebiyi, O. J., & Sanni, A. G. (2020). IDENTIFICATION AND ASSESSMENT OF KEY POLITICAL RISK FACTORS INFLUENCING CORPORATE PERFORMANCE OF MULTINATIONAL CONSTRUCTION COMPANIES IN NORTH-EASTERN, NIGERIA.
Open Journal of Management Science (ISSN: 2734-2107), 1(1), 1–15. https://doi.org/10.52417/ojms.v1i1.76
Adeleke, S. A., Owolabi, S., & Akintoye, I. R. (2022). Internationalization Strategies and Performance of Multinational Companies in Nigeria. Archives of Business Research, 10(7), 1–19. https://doi.org/10.14738/abr.107.12509
Afiyanti, Y. (2008). Focus Group Discussion (Diskusi Kelompok Terfokus) sebagai Metode Pengumpulan Data Penelitian Kualitatif. Jurnal Keperawatan Indonesia, 12(1), 58–62. https://doi.org/10.7454/jki.v12i1.201
Bánociová, A., & Ťahlová, S. (2020). Tax Loss Amortization of Companies in Slovakia. Journal of Risk and Financial Management, 13(10), 241–241. https://doi.org/10.3390/jrfm13100241
Bohodirovna, A. D. (2023). TAX MANAGEMENT POLICIES OF INTERNATIONAL
COMPANIES OF THE UZBEKISTAN. International Journal Of Management And Economics Fundamental, 3(4), 19–23. https://doi.org/10.37547/ijmef/volume03issue04-03
Bueltel, B. L., & Duxbury, A. (2020). Feeling GILTI: Tax Strategies for U.S. Multinational Corporations to Navigate the Tax Cuts and Jobs Act. The ATA Journal of Legal Tax Research, 19(1), 1–29. https://doi.org/10.2308/jltr-18-015
Clarabella, A., & Pranoto, E. (2021). JURIDICIAL ANALYSIS OF TRANSFER PRICING DOCUMENTS IN RESPECT OF TAX AVOIDANCE FOR MULTINATIONAL COMPANIES. UNTAG Law Review, 5(2), 49–49.
https://doi.org/10.56444/ulrev.v5i2.2657
Contractor, F., & Ciravegna, L. (2023). How the More Risk-Aware Post-2022 Global Environment Affects Multinational Company Strategies. Academy of Management Proceedings, 2023(1). https://doi.org/10.5465/amproc.2023.16528abstract
Coronado, L., & Cooper, J. L. (2024). Better together: New opportunities for multinational companies and tax authorities to collaborate on tax certainty. International Tax Disputes, Query date: 2024-07-25 06:46:47, 209–226. https://doi.org/10.4337/9781035317042.00028
Dobranschi, M., Nerudová, D., Solilová, V., & Litzman, M. (2023). An alternative measure of profit shifting and corporate income tax losses. Journal of Multinational Financial Management, 70(Query date: 2024-07-25 06:46:47), 100822–100822. https://doi.org/10.1016/j.mulfin.2023.100822
Firman, F.-. (2018). PENELITIAN KUALITATIF DAN KUANTITATIF. Query date: 2024-05-25
20:59:55. https://doi.org/10.31227/osf.io/4nq5e
Gajewski, D. J. (2021). International tax competition versus optimisation strategies adopted by holding companies in tax havens. Przegląd Ustawodawstwa Gospodarczego, 2021(11), 2–7. https://doi.org/10.33226/0137-5490.2021.11.1
Gao, X., Han, J., Jin, Z., & Su, Z. (2022). Cross-Cultural Advertising Marketing Strategies of Multinational Companies—Nike for Example. Journal of Economics, Business and Management, 10(2), 133–139. https://doi.org/10.18178/joebm.2022.10.2.687
Garcia-Bernardo, J., Janský, P., & Zucman, G. (2022). Did the Tax Cuts and Jobs Act Reduce Profit Shifting by US Multinational Companies? Query date: 2024-07-25 06:46:47. https://doi.org/10.3386/w30086
Hosen, Md. E. (2022). FACTORS AFFECTING EMPLOYEE TURNOVER IN MULTINATIONAL
COMPANIES IN MALAYSIA. Malaysian Management Journal, 26(Query date: 2024- 07-25 06:46:47). https://doi.org/10.32890/mmj2022.26.2
Huang, Y. (2024). Analysis of Currency Risk Hedging Strategies in Multinational Companies: A Case Study of the 2022 Russo-Ukrainian War and Surge in US Dollar Exchange Rate. SHS Web of Conferences, 188(Query date: 2024-07-25 06:46:47), 1001–1001. https://doi.org/10.1051/shsconf/202418801001
Juettner, U., Windler, K., Podleisek, A., Gander, M., & Meldau, S. (2020). Implementing supplier management strategies for supply chain sustainability risks in multinational companies. The TQM Journal, 32(5), 923–938. https://doi.org/10.1108/tqm-05-2019-0136
Katamadze, D., & Davitadze, I. (2024). PECULIARITIES OF HUMAN RESOURCE
MANAGEMENT IN MULTINATIONAL COMPANIES. Innovative Economics and Management, 11(2), 185–201. https://doi.org/10.46361/2449-2604.11.2.2024.185-
201
Krajnović, A. (2020). Institutional distance. Journal of Corporate Governance, Insurance and Risk Management, 7(1), 15–24. https://doi.org/10.51410/jcgirm.7.1.2
Krifa-Schneider, H., & Sattar, A. (2021). Multinational Corporations’ Tax Optimization Strategies and European Union Policies. Management International, 25(5), 69–69. https://doi.org/10.7202/1085039ar
Lasloom, N. M., & Grigorieva, E. (2021). Risk management and strategic improvement of corporate sustainability for multinational companies. The Business and Management Review, 12(2). https://doi.org/10.24052/bmr/v12nu02/art-04
Li, X. (2023). Comparative Research on the Internationalized Business Strategies of China and U.S. Multinational E-commerce Companies. Highlights in Business, Economics and Management, 23(Query date: 2024-07-25 06:46:47), 1279–1289. https://doi.org/10.54097/3wne0321
Lind, Y. (2021). Attracting Multinational Tech-Companies Through Environmental Tax Incentives. Intertax, 49(Query date: 2024-07-25 06:46:47), 885–896. https://doi.org/10.54648/taxi2021089
Nurdiansyah, R. & Masripah. (2023). Factors causing tax avoidance practices in multinational companies: Evidence from Indonesia. International Journal of Research in Business and Social Science (2147- 4478), 12(3), 391–398. https://doi.org/10.20525/ijrbs.v12i3.2565
Nurmala, P., Febianti, T. D., & Adiwibowo, A. S. (2024). Business Strategy, Multinational Companies, Integrated Reporting, and Tax Avoidance. JAK (Jurnal Akuntansi) Kajian Ilmiah Akuntansi, 11(2), 398–407. https://doi.org/10.30656/jak.v11i2.6913
Octisari, S. K., Iskandar, C. N., Wijaya, M., & Lestari, P. (2023). FACTORS INFLUENCING TAX AVOIDANCE PRACTICES IN MULTINATIONAL COMPANIES IN INDONESIA. JAE (JURNAL AKUNTANSI DAN EKONOMI), 8(2), 1–10.
https://doi.org/10.29407/jae.v8i2.19885
Oladipo, O., Nwanji, T., Eluyela, D., Godo, B., & Adegboyegun, A. (2022). Impact of tax fairness and tax knowledge on tax compliance behavior of listed manufacturing companies in Nigeria. Problems and Perspectives in Management, 20(1), 41–48. https://doi.org/10.21511/ppm.20(1).2022.04
Pertiwi, R. D. Y., & Wasil, M. (2023). TAX PLANNING AND DEFERRED TAX EXPENSE ON THE VALUE OF MULTINATIONAL COMPANIES IN INDONESIA. International
Journal of Management Studies and Social Science Research, 5(6), 184–192. https://doi.org/10.56293/ijmsssr.2023.4719
Pertiwi, W. H. S., & Weganofa, R. (2015). PEMAHAMAN MAHASISWA ATAS METODE PENELITIAN KUALITATIF: SEBUAH REFLEKSI ARTIKEL HASIL PENELITIAN.
LiNGUA: Jurnal Ilmu Bahasa Dan Sastra, 10(1), 18–18. https://doi.org/10.18860/ling.v10i1.3029
Prasetya, D., & Venusita, L. (2023). COMPARATIVE STUDY EFFECT OF INTELLECTUAL CAPITAL ON TAX AVOIDANCE IN DOMESTIC COMPANIES AND MULTINATIONAL COMPANIES. JAE (JURNAL AKUNTANSI DAN EKONOMI), 8(2), 127–135.
https://doi.org/10.29407/jae.v8i2.20330
Qu, J., Wang, J., & Zhang, Y. (2023). Analysis of localized marketing strategies of multinational companies—Based on the 4P model. BCP Business & Management, 37(Query date: 2024-07-25 06:46:47), 306–311.
https://doi.org/10.54691/bcpbm.v37i.3580
Rushkovskyi, M. (2022). ESG Concept As The Newest Determinant Of Corporate Risk Management Strategies Of Multinational Enterprises. International Journal of Management and Economics Invention, Query date: 2024-07-25 06:46:47. https://doi.org/10.47191/ijmei/v8i8.01
Salazar, R. J., Wang, J., & Zhao, J. (2022). Analysis on Evolution of Strategies: Global Multinational Companies in China. New Innovations in Economics, Business and Management Vol. 7, Query date: 2024-07-25 06:46:47, 110–129. https://doi.org/10.9734/bpi/niebm/v7/2786c
Schutter, O. D., Lusiani, N. J., & Chaparro, S. (2021). Re-righting the international tax rules: Operationalising human rights in the struggle to tax multinational companies. Human Rights and Economic Policy Reform, Query date: 2024-07-25 06:46:47, 124–152. https://doi.org/10.4324/9781003174912-7
Sendyona, C. C. (2020). A Legitimate Tax Plan for Minimization of Taxes for Multinational Technology Companies. International Journal of Scientific and Research Publications (IJSRP), 10(5), 133–137. https://doi.org/10.29322/ijsrp.10.05.2020.p10115
Setiawan, E. (2024). Do Tax Rates Encourage Profit Shifts By Multinational Companies In Indonesia? EKOMBIS REVIEW: Jurnal Ilmiah Ekonomi Dan Bisnis, 12(2). https://doi.org/10.37676/ekombis.v12i2.5415
Sultan, M. F., Shaikh, S. K., & Tunio, M. N. (2024). CSR Activities as a Neutralizer. Strategies and Approaches of Corporate Social Responsibility Toward Multinational Enterprises, Query date: 2024-07-25 06:46:47, 176–183. https://doi.org/10.4018/979- 8-3693-0363-4.ch010
Vržina, S. (2021). PROFIT SHIFTING TO EUROPEAN TAX HAVENS: THE CASE OF SUBSIDIARIES OF MULTINATIONAL COMPANIES IN SERBIA. TEME, Query date: 2024-07-25 06:46:47, 1441–1441. https://doi.org/10.22190/teme190715085v
WANG, Y. (2020). Foreign Exchange Risk Management of Multinational Companies. Proceedings of the 2020 5th International Conference on Modern Management and Education Technology (MMET 2020), Query date: 2024-07-25 06:46:47. https://doi.org/10.2991/assehr.k.201023.027
