• Tax governance for privately owned groups

    Privately owned groups recognise the importance of good governance to manage the ongoing performance and success of their business.

     

    Governance promotes accountability and transparency in business and it supports businesses in making financial and business decisions.

    Governance sets out clear rules and responsibilities and helps businesses meet their regulatory and other legal obligations as well as expectations around their environmental and social responsibilities and economic and reputational risks.

    Governance is also important in managing tax obligations and risk.

    Businesses are making efforts to strengthen their corporate and tax governance to build stakeholder and community confidence that they are well governed, meeting their obligations and paying the right amount of tax.

    We expect private groups to have in place effective tax governance practices to identify and manage tax and superannuation risks. The right governance for your business will depend on a range of factors, including its size, complexity, history and culture.

    Investing in effective tax governance that supports appropriate tax outcomes can influence your tax profile with the ATO, with the potential to save you time, money and effort.

    This resource outlines the key features of governance we believe a business should have to effectively manage tax risks. It sets out guiding principles and examples of tax governance practices you can incorporate into your overall governance framework.

    You and your tax advisers can use this resource to:

    • develop an effective tax governance framework as part of your corporate governance
    • identify how you can make improvements to your existing governance frameworks
    • understand how to demonstrate that your tax governance is effective.

    This practical guidance is structured around major events in the business lifecycle, highlighting the tax governance issues that accompany these events and the associated tax risks that commonly attract our attention.

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    About privately owned and wealthy groups

    What attracts our attention – To help you get things right, we publish key information on what attracts our attention – it's part of our commitment to transparency in working with privately owned groups.

    Last modified: 30 May 2016QC 49189