The tax attorney and business advisor, Victor Boris Santos Maciel, explains that in many companies the focus is on selling more, expanding operations, and gaining market share—but a silent factor can put all of this at risk: the lack of control over tax obligations. Tax risk management is now one of the pillars of financial sustainability, especially in complex regulatory environments such as Brazil.
If your company aims to grow safely, this is a topic that must be at the center of its strategy. In this article, learn more about the factors that can compromise control and the healthy growth of your business.
What characterizes tax risk in companies?
Tax risks arise whenever there is a discrepancy between what the law requires and what the company actually practices. This may occur due to an inappropriate tax classification, misinterpretation of regulations, failures in tax document issuance systems, or noncompliance with ancillary obligations.
Victor Boris Santos Maciel further highlights that more complex operations—such as transfers between branches, service agreements, regional tax incentives, and interstate transactions—significantly increase exposure to risk. Many companies do not realize they are at risk until they are notified by the tax authorities, at which point the cost of correction is already much higher.
Why does risk grow as the company grows?
As a company grows, the volume of transactions, the complexity of operations, and the amount of information reported to regulatory authorities all increase. If internal processes do not evolve at the same pace, the likelihood of errors also rises, notes Victor Boris Santos Maciel.
Expansion into new states, opening new branches, diversification of products or services, and changes in the tax regime are examples of situations that require an immediate review of tax controls. In this context, it is common to see companies with strong operational results facing financial difficulties due to tax assessments resulting from failures that could have been prevented.
The role of compliance in reducing tax assessments
Tax risk management is directly linked to the implementation of tax compliance programs. These programs involve standardizing routines, clearly defining responsibilities, periodically reviewing procedures, and using technology to monitor and validate data.
Compliance does not completely eliminate risk, but it significantly reduces both its likelihood and impact. When a company demonstrates that it has structured internal controls, it can respond more efficiently to audits and correct issues before they turn into material liabilities.
For the tax attorney and business advisor, Victor Boris Santos Maciel, compliance also improves the quality of information used by management, as it creates more reliable processes for collecting and analyzing tax data. This strengthens decision-making and reduces reliance on emergency corrections.
Another important benefit is integration across departments. When tax, accounting, finance, and legal teams work in a coordinated manner, risks are identified earlier and addressed more efficiently.
How to turn control into a competitive advantage
Although many companies see tax control merely as an obligation, it can become a competitive advantage when well structured. Companies with low levels of tax contingencies enjoy greater cash flow predictability, better access to credit, and greater attractiveness to investors.
Moreover, risk reduction allows management to focus on growth, innovation, and expansion strategies rather than dealing with corrective problems. According to Victor Boris Santos Maciel, companies that invest in tax risk management are able to plan for the future with greater security and stability.
Managing risks is protecting the future of the business
Tax risk management is a fundamental component of good governance and financial performance. Ignoring this issue can compromise results, reputation, and growth capacity—even in businesses with strong operational performance.
Victor Boris Santos Maciel concludes that with a structured approach, it is possible to turn tax control into a strategic ally, reducing liabilities, increasing predictability, and strengthening the foundation for long-term decisions. For companies that wish to grow consistently, managing tax risks is not a cost—it is an investment in stability and the future.
Author: Halabeth Gallavan
