During an Australian Tax Office (ATO) review or audit, the representative will request information regarding your group’s tax governance frameworks. Having these updated and well-documented helps the regulator gain comfort that the organisation is a good corporate citizen worthy of “justified trust”.
Earlier this week, on 13 December 2021, the ATO updated expectations of tax governance frameworks for Australian private groups. This is anticipated to progress to smaller groups in due course.
The updated guidance suggests that the ATO are expecting business to have clear processes and procedures in place to assist with understanding and meeting their tax and superannuation obligations.
What you need to do
Pilot recommend reviewing your existing tax governance frameworks early in the new year, to ensure they are updated where appropriate and they are adequately documented.
For more information about the ATO’s expectations for private groups visit Updated tax governance guidance for private groups.
Further information and specific detail regarding the core elements and key principles of effective tax governance see the ATO’s Seven principles of effective tax governance.