Identify several companies that have demonstrated strategic thinking about issues that are similar to those faced by the Internal Revenue Services. Provide an overview of the issues, identify a total of five different strategies utilized by those companies to address them, and discuss the outcomes. Based on the five strategies, explain how you would adopt them in your selected organization to address the issues.
One of the most critical issues faced by tax authorities in multiple nations across the world is illegal tax avoidance schemes. UK's tax authority, ie, HMRC, has implemented various disclosure norms to minimize the abuse of tax savings or tax avoidance schemes. This effort is expected to reduce or minimize the use of illegal tax avoidance schemes being utilized by thousands of tax payers every year.
The impact of such strict disclosure norms have been positive for UK tax authorities. The disclosure rules have transformed the environment, helping to clamp down on those tax advisers who were 'making money for themselves and saving tax for their clients by very aggressive schemes of tax avoidance schemes.
IRS can pursue similar aggressive strategies by learning from the best practices pursued by tax authorities in different countries to save revenue loss from such abusive schemes. Such aggressive practices will help IRS in generating additional revenue that is lost due to such illegal and abusive tax avoidance schemes.
Another critical issue being faced by large government organizations that handle millions of clients (tax payers in the case of IRS), is increasing number of fraud cases, cases relate identity theft and other types of online frauds.
Organizations like leading banks and financial institutions have been struggling this issue for a long time. Leading banks such as JP Morgan, HSBC, Bank of America, etc. continuously educate their customers to be careful in terms of responding to fraud emails, anonymous callers posing as organization's staff, etc. It is impossible to eliminate such kind of frauds and ...
The solution gives a 982-word discussion of tax bureau's current approaches to combating tax fraud and evasion as well as a look at what they could be doing to improve their practices. Includes links for further reading.