Our risk reviews
We undertake reviews that apply a risk approach to privately owned and wealthy groups. This is different from approaches such as our streamlined assurance reviews that use our justified trust methodology.
We base case selection for these reviews on our profiling and data analytics.
The reviews may be conducted at the group or entity level depending on the presence of tax risk.
Comprehensive reviews
A comprehensive review is used where we have identified multiple potential issues or risks within your group, or a single entity within your group through profiling and data analytics.
Specific reviews
We undertake specific reviews where we have identified simple potential issues or risks within your group, or a single entity within your group.
Our approach to risk reviews
When undertaking comprehensive and specific reviews, we'll:
- notify you in writing
- meet you to understand your business
- write to you to request information
- contact you to discuss next steps.
Notify you in writing
We'll notify you in writing that we're starting a comprehensive review or a specific review.
Meet you to understand your business
We'll offer to meet with you to get a better understanding of your business and to discuss timeframes and the information we'll need from you.
Write to you to request information
We'll write to you setting out the information we need you to provide. This information will clarify our understanding of risks within the context of your circumstances. Keeping good records will also help you with our enquiries.
Where you are unwilling to work with us in an open and transparent way in responding to our requests for information, we will use our formal information gathering powers.
Contact you to discuss next steps
After we receive your response and consider the information you've provided, we'll contact you to discuss our analysis and next steps.
Where we are undertaking a comprehensive review, we may also organise a meeting to discuss areas of concern we have identified.
How to prepare for a review
Prepare for a review by considering the documents we typically request, such as:
- information used to prepare your tax return
- your group structure
- financial statements
- agreements.
Our comprehensive reviews generally focus on the latest 2 tax returns (lodged before the start of the review), so we're likely to request information for this time period.
We'll tailor our request for information to your business, focusing on the tax risks and issues identified.
You can find out more about the questions and documents we may request, that apply to the tax risks and issues identified in our reviews where relevant, in our streamlined assurance review guidance.
Voluntary disclosure
When you are notified of your review, we encourage you to review your records and recent significant transactions or business events and correct any mistakes by making a voluntary disclosure.
When reviewing your records you may wish to contact your adviser and discuss any tax risks you identify. You can make a voluntary disclosure at any time during a review.
What to expect at the end of the review
At the end of a review we'll discuss our outcomes with you and provide you with a finalisation letter that outlines the tax risks and issues reviewed, and specifies:
- if there are no outstanding concerns, that we have concluded our review; or
- escalated the review to an audit.