Building Three Lines of Defense in IT-Companies for Tax Risks Minimization

This master's thesis details and reveals the importance of building a competent internal control system in companies operating in the field of information technology. The focus of the thesis is on the mechanism of prevention and avoidance of tax risks by IT companies in the application of tax incentives for the IT sector established in Russia through the implementation of the model of three lines of defence. The aim of the dissertation is to identify the main risk factors inherent in the application of tax incentives by IT companies, as well as to propose recommendations for improving the internal interaction between the lines of defence for more efficient operation of the internal control system and better business results. In order to achieve the stated goal, the author faced the tasks of defining the main concepts and trends in the development of the model of three lines of defence, identifying the key features of tax regulation of IT companies, determining the specifics of building an internal control system in IT companies, as well as proposing a model of building three lines of defence in IT companies. When conducting the research, the author relied on the current court practice, scientific works of Russian and foreign authors, as well as on the experience of the largest Russian technology companies in building an internal control system. Based on the results of the research, the author was able to identify the main risk factors associated with IT companies when applying tax incentives, and on their basis to prepare recommendations for building a model of three lines of defence in order to minimise potential risks.