Three of the five organisations felt that unpredictable ruling by tax administrator is the most important factor contributing to tax risk challenges in the present scenario.
Nearly three-fourths of the surveyed companies are conservative in their approach and do not want to litigate for settling tax-related issues.
More than half the respondents see image damage as the top concern due to tax risks, surpassing opportunity to save cost and potential levies.
One in two respondents believes that functional departments are primarily managing risk issues across industry sectors.
Effective contingency planning is in place for 87 per cent of multinational organisations, as compared to 69 per cent in Indian companies.
IT/ITeS firms perceive higher risk on account of compliance to tax regulations, accounting procedures and failure in these and transactional aspects.