Tax Liability Risk

The risk of a material and unanticipated financial taxation liability or provision arising. This can be due to a variety of factors including, but not limited to:

• Failure to correctly and accurately identify taxation obligations;
• A change in the treatment of material taxable items; or
• A change in tax law or taxation arrangements in or between various jurisdictions.

Significant tax liabilities that were not previously identified or disclosed (but did exist) are also hidden liabilities (refer Hidden Liabilities Risk).