Title Page
TECHNICAL NOTES AND MANUALS
Compliance Risk Management: Developing Compliance Improvement Plans
John Brondolo, Annette Chooi, Trevor Schloss, and Anthony Siouclis
Fiscal Affairs Department
INTERNATIONAL MONETARY FUND
TECHNICAL NOTES AND MANUALS
Compliance Risk Management: Developing Compliance Improvement Plans
Prepared by John Brondolo, Annette Chooi, Trevor Schloss, and Anthony Siouclis
Copyright Page
© 2022 International Monetary Fund
Cover Design: IMF Creative Services
TECHINCAL NOTES AND MANUALS
Fiscal Affairs Department
Compliance Risk Management: Developing Compliance Improvement Plans
Prepared by John Brondolo, Annette Chooi, Trevor Schloss, and Anthony Siouclis
Names: Brondolo, John. | Chooi, Annette. | Schloss, Trevor. | Siouclis, Anthony. | International Monetary Fund. Fiscal Affairs Department, issuing body. | International Monetary Fund, publisher.
Title: Compliance Risk Management: Developing Compliance Improvement Plans/prepared by John Brondolo, Annette Chooi, Trevor Schloss, Anthony Siouclis.
Other titles: Technical Notes and Manuals (International Monetary Fund)
Description: Washington, DC: International Monetary Fund, 2022. | March 2022. | Includes bibliographical references.
Identifiers: ISBN 9798400205910 (paper)
Subjects: LCSH: Compliance Risk Management. | Compliance Improvement Plans.
Classification: H26
DISCLAIMER: Fiscal Affairs Department (FAD) Technical Notes and Manuals offer practical advice from IMF staff members to policymakers on important fiscal issues. The views expressed in FAD Technical Notes and Manuals are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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Contents
I. Introduction
II. Plan Overview
III. Segment Profile
IV. Risk Assessment
V. Risk Treatments
VI. Workflows and Monitoring
VII. Evaluation of Compliance Impacts
VIII. Capacity Development
IX. Governance Arrangements
X. Key Implementation Issues
References
Figures
Figure 1. Compliance Risk-Management Framework
Figure 2. Example of a Compliance Improvement Plan for Medium-Sized Businesses and Their Value-Added Tax Obligations
Figure 3. Risk Rating Matrix (3 x 3)
Figure 4. Tailoring the Risk Treatments to Segments and Risk Posture
Boxes
Box 1. Examples of a Strategy Overview Statement
Box 2. Examples of Category-Level Risks for Income Tax Reporting by Large Businesses
Box 3. Identifying Category-Level Risks: Intelligence-Based Methods
Box 4. Identifying Category-Level Risks: Hypothesis Methods
Box 5. Examples of Statistical Methods for Risk Identification
Box 6. Typical Data Sources for Quantitative Risk Assessment
Box 7. Risk Register Content
Box 8. Contents of a Risk Treatment Plan and Risk Treatment Template
Tables
Table 1. Illustrative List of Workflows for Key Compliance Obligations
Table 2. Illustrative Tax Compliance Outcome Indicators
Table 3. Major Deliverables for Implementing a Compliance Improvement Plan (CIP)
Appendices
Appendix 1. Statistical Methods for Risk Identification
Appendix 2. Calculating Risk Ratings: Registration Risk
Appendix 3. Calculating Risk Ratings: Filing Risk
Appendix 4. Calculating Risk Ratings: Reporting Risk
Appendix 5. Calculating Risk Ratings: Payment Risk
Appendix 6. Setting Workflow Targets
Appendix 7. Examples of Common Applications
Glossary
| BI&V | Business Intelligence and Visualization |
| BISEP | Business, Industry, Sociological, and Psychological |
| CIP | Compliance Improvement Plan |
| COTS | Commercial off-the-Shelf |
| CRM | Compliance Risk Management |
| FAD | Fiscal Affairs Department (of the IMF) |
| IMF | International Monetary Fund |
| IT | Information Technology |
| KCM | Key Client Manager |
| OECD | Organisation for Economic Co-operation and Development |
| PIT | Personal Income Tax |
| R&D | Research and Development |
| SMS | Short Message Service |
| VAT | Value-Added Tax |
| WMS | Workflow Management System |