IndexIntroductionRisksConclusionIntroductionTaxation is an act, process or means by which the sovereign (independent state) through its legislative body (legislative branch of government) requires revenue in order to support its existence and achieve its legitimate objectives (Scribd, 2011). It is imposed in several types of taxes: capital gains tax, income tax, inheritance tax, VAT, corporation tax and property tax. Taxes are authorized by the government to the public for the improvement of the economy which is invested in improving infrastructure, for funding education and the national health service. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Taxes have always been an important factor in the business sector. The development of new technologies has influenced the working atmosphere visible by digital presence in the form of location, data and physical resources. With the new advancement of technologies, tax authorities are making an effort to follow, through management, new business models and new technologies. The rapidly changing tax landscape has a broader impact on multinational companies on how they manage their business activities. The changing tax landscape impacts base erosion and profit sharing (BEPS). It aims to eliminate financial activities that reduce taxable profits through complex structures or withholding taxes. Although the action plan identifies a number of actions that enable a comprehensive approach to address the identified risks. The concepts of tax avoidance and tax evasion are managed by organizations. Tax avoidance, which is generally achieved by deducting business expenses, setting up a pension plan and more, is legal. Alternatively, tax evasion is the illegal practice of not paying taxes on earned income. Risks Risk is a possibility of threat or harm that could occur or occur. Tax risk is the possibility that tax rules may change resulting in losses due to higher than expected taxes (Spacey, 2016). There are four types of tax risks followed by: Tax Reputational Risk Reputational risk is a risk that threatens the good name of a company or business which includes direct risk due to the company's action, indirectly due to the actions of employees or indirectly through other third parties such as joint ventures, partners or suppliers (Investopedia, 2018). Companies usually tend to reduce costs during recessions. However, nowadays, the tax burden (consequences of a specific tax on the distribution of economic well-being) for CEO/boards of directors is increasing. With the growing number of social media users, news channels and public opinions on tax affairs affect the company's reputation. The 2019 PWC says rising tax burdens were cited as the top threat to businesses by 55% of CEOs in 2011 and 62% in 2012 in the 15th annual Global CEO Survey. It is also stated that corporate income tax constitutes only a little more than a third of the total tax rate, which raises concerns from stakeholders and the public as to whether companies should pay their fair share of taxes. Thus, the company's reputation is called into question. on risk. The decision whether to make financial tax information public is solely up to companies. Provides more pressure as it exposes financial assets, including their work ethic and theway they operate. Tax provisions cause a change in the opinion of the company by its customers, suppliers or employees. Reputational tax risk can be prevented by understanding stakeholders by aggregating communication of new procedures, agreements and plans in terms of tax reporting and tax functions. dynamic changes such as new fiscal financial requirements and public interest. Understand which tax practices/terms are right for your business by communicating with Total Tax Contribution. Having a detailed tax plan and including international risk information, management, inspection, performance and tax resolution process with the agreement of the boards of directors. Operational Tax Risk Operational tax risk refers to the processes, people and systems in place to manage tax risk and manifests as tax compliance risk (Www2.deloitte.com, 2016). Defines the relationship between fiscal, financial and other operational risks. The different types of tax operations depend on the tax risk which includes staff turnover, new and large projects, audit programs or internal controls, etc. However, the relationship may push the resulting globalization to the annihilation of skills. Similarly in the past, the IVA had a low risk of failure with the large number of people setting up the account; the finance and tax teams work as one team which allows for the location and increased efficiency of the workforce. Operational tax regulation processes and controls technological means when required in order to maintain the reputation of regulators. Operational risks can be prevented by introducing a tax policy with a well-defined strategy supported by the company's board of directors and CEOs. Organizing global events or guidance taking into account factors such as tax accounting, indirect taxes and tax reporting. It helps achieve tax efficiency in the international market and improves financial goals by achieving better taxation. Replacing or updating accounting software with the right technologies. Legislative Tax Risk Legislative tax risk is the potential that government regulations or legislation could significantly alter the business prospects of one or more companies (Investopedia, 2019). This legislation increases the public image of the importance of government, as well as providing marketing to the individual politician. Legislative risk brings into focus the relationship between businesses and governments. The government has the right to interfere in the industry if companies are reluctant to follow the regulation. There is a high possibility that investors will suffer losses if the government passes the law. Risks can come in the form of specific taxes, sponsorships, new regulations and more. It typically protects employee rights or free trade agreements that allow the industry to be less competitive than its external counterpart. Wal-Mart stores are one of the examples of legislative risk. Higher tariffs from foreign suppliers have increased the cost price of goods, resulting in a slight decline in sales. Investopedia, 2019 states that the organization has outlined some legislative and political/economic risks of 10,000 annual expenses in filing with the Securities and Exchange Commission (SEC) in its Operational Risks section. With the growing range of people using digital technologies, information about how business is run is very accessible to the public and government. It pressurizes the organization and therefore the tax legislation is very strict. Even if the avoidance.