PART II - TRANSACTIONAL Risk:

The next 5 questions relate to TRANSACTIONAL Risk.


TRANSACTIONAL 1) -
Have you made any material acquisitions, disposals, mergers in the past 5 years?:

TRANSACTIONAL 2) - Have you entered into any material financing transactions in the past 5 years?:

TRANSACTIONAL 3) - Are you involved in any cross border transactions with a transfer pricing exposure?:

If YES to the TRANSACTIONAL Question 3) above -

3.1) Do you have a transfer pricing manual?:

TRANSACTIONAL 4) - Have you done any internal re-organization in the past 5 years?:

If YES to the TRANSACTIONAL Question 4) above -

4.1) Did you get an opinion and did you double check the tax implications?:

TRANSACTIONAL 5) - Do you have any stock option or any other employee bonus schemes?:

If YES to the TRANSACTIONAL Question 5) above -

5.1) Have you double-checked the tax implications?:

PART III - OPERATIONAL Risk:

The next 6 questions relate to OPERATIONAL Risk.


OPERATIONAL 1) - Have you entered into any new business ventures in the past 5 years?:

If YES to the OPERATIONAL Question 1) above -

1.1) Have you provided separate details to your accountant?:

OPERATIONAL 2) - Have you entered into any new operating models in the past 5 years?:

If YES to the OPERATIONAL Question 2) above -

2.1) Have you provided separate details to your accountant?:

OPERATIONAL 3) - Have you opened any new locations in the past 5 years?:

If YES to the OPERATIONAL Question 3) above -

3.1) Have you provided separate details to your accountant?:

OPERATIONAL 4) - Have you implemented any new operating structures (JV's or partnerships) in the past 5 years?:

If YES to the OPERATIONAL Question 4) above -

4.1) Have you provided separate details to your accountant?:

OPERATIONAL 5) - Have you commenced any new internet sales sites in the past 5 years?:

If YES to the OPERATIONAL Question 5) above -

5.1) Have you provided separate details to your accountant?:

OPERATIONAL 6) - Do you communicate every month with the head of the various operating divisions to determine any new tax risks?:

PART IV - COMPLIANCE:

The next 23 questions relate to COMPLIANCE.


COMPLIANCE 1) - Do you double check your financial information before completing tax returns?:

COMPLIANCE 2) - Do you summarize the information you require to complete your tax returns on an excel type spreadsheet?:

COMPLIANCE 3) - Does a third party check the integrity of the excel type spreadsheet?:

COMPLIANCE 4) - Do you implement Sox404 in your business?:

COMPLIANCE 5) - Do you comply with FIN48?:

COMPLIANCE 6) - Do you have a document archive retrieval system where you can access documents within 24 hours, up to 5 years ago?:

COMPLIANCE 7) - Have you changed your tax compliance IT system in the last 5 years?:

COMPLIANCE 9) - Have you been audited by the IRS or State Revenue authority in the past 5 years?:

COMPLIANCE 11) - Are your tax returns submitted up to date?:

COMPLIANCE 12) - Do you operate any offshore subsidiaries?:

COMPLIANCE 13) - Do you have entertainment expenses greater than $ 10,000.00?:

COMPLIANCE 14) - Do you claim any home study expenses?:

COMPLIANCE 15) - Do you have any sales tax credits?:

COMPLIANCE 16) - Have you submitted any tax returns early?:

COMPLIANCE 17) - Do you run a cash intensive business?:

COMPLIANCE 18) - Do you run a professional business?:

COMPLIANCE 19) - Is your business a subsidiary of a foreign company or entity?:

COMPLIANCE 20) - Are management fees paid?:

COMPLIANCE 21) - Does your business operate inter-State in the USA?:

COMPLIANCE 22) - Do you give away free products or services in your business?:

COMPLIANCE 23) - Have you identified any addition tax problem or uncertainly under the 7 steps methodology? (If yes please download the following spreadsheet, complete it and submit to trmatrix@tax-Radar.com):

PART V - FINANCIAL ACCOUNTING:

The next 4 questions relate to FINANCIAL ACCOUNTING.


FINANCIAL ACCOUNTING 1) - Has there been a material change in your accounting system in the last 5 years?:

FINANCIAL ACCOUNTING 2) - Have you implemented any new accounting standards in the last 5 years that may effect your tax?:

MANAGEMENT 2) - Are you going to increase the size of your tax department in the near future?:

PART VII - REPUTATIONAL Risk:

The next 2 questions relate to REPUTATIONAL Risk.


REPUTATIONAL 1) - Has your business ever been in the media regarding tax matters?:

REPUTATIONAL 2) - Are you concerned about your company's reputation when it comes to tax compliance?: