The governance practices of IRBM have been extended to external stakeholders, including the taxpayer community. A key element in strengthening corporate governance is the implementation of Tax Compliance Risk Management. This initiative serves as a strategic control framework that guides the process of identifying, assessing, and managing risks that could potentially affect taxpayer compliance with national tax laws and regulations.

Through the Tax Compliance Risk Management Plan, IRBM coordinates the handling of tax compliance risks in a uniform and systematic manner, ensuring each risk is managed proactively and integrally to minimize negative impacts on the organization.

Key Activities under IRBM Tax Compliance Risk Management:

1. Classification of Key Risks
   Managing tax compliance risks based on four main categories: Tax File Registration, Submission of Return Forms, Tax Reporting, and Tax Payment.

2. Guidance and Capacity Building
   Providing guidance to Sectors, Departments, and States in implementing and strengthening tax compliance risk management capabilities.

3. Coordination of Implementation
   Coordinating risk handling uniformly and systematically through the Tax Compliance Risk Management Plan.

4. Compliance Monitoring
   Monitoring the level of compliance in risk management activities carried out by process owners and risk owners.

5. Standardized Reporting
   Ensuring risk profile reports are prepared according to established standards and criteria.

Expected Impacts on Governance Effectiveness and Operational Efficiency:

1. Supporting Top Management’s Strategic Decisions
   Assisting management in identifying tax compliance risks that require immediate action, serving as a foundation for optimal and effective resource allocation.

2. Systematic Approach to Risk Management
   Enabling the process of identification, assessment, and prioritization of risks to be conducted in an organized, transparent, and comprehensive manner to enhance internal control efficiency.

3. Dynamic and Up-to-Date Risk Monitoring
   Enhancing IRBM capability to monitor and assess risks systemically and in real-time through the implementation of the Risk Information Management System (i-RIS) 2.0.

4. Adherence to International Standard Practices
   Demonstrating IRBM continuous commitment to the principles of good tax governance, in line with recommendations outlined by international bodies such as Organization for Economic Co-operation and Development and International Monetary Fund (IMF).

5. Increasing Public Trust and Confidence
   A systematic approach to tax compliance risk management strengthens public trust in IRBM transparency, efficiency, and accountability.