Using the guide
This guide will help you to:
- identify the GST governance, risk management and assurance processes you have in place
- determine if these processes adequately follow best practice and assist in meeting your entity's compliance obligations
- identify additional measures you can take to reduce the risk of GST compliance failures.
Completing the assessment
When completing the assessment, we suggest you:
- consider each point and respond according to your knowledge
- make further enquiries of specialist business areas (if required)
- gather evidence to support your answers.
Your responses to the focussing statements, together with the evidence you gather, will help you to determine the effectiveness of your entity's GST governance and risk management processes.
Providing a sufficient level of detail in your answers, along with relevant and appropriate supporting evidence, will ensure an accurate assessment of your GST compliance environment. This will also help your entity determine any residual risks, gaps or exceptions that require action to improve assurance, governance or risk management frameworks. It is important to plan to take action to address risk areas or gaps identified, prioritising any areas of higher risk.
You may want to conduct a workshop with other specialist business areas, such as internal audit, corporate governance and risk management. This may help you to gain a more comprehensive understanding and enable more informed responses.
End of attention
Complementing existing processes
With any large entity we expect to see sophisticated processes in place to identify, analyse, evaluate, treat, monitor and review tax risk in accordance with a recognised risk management standard (such as ISO 31000). Ideally the self-assessment process will complement your existing governance and risk management review processes as they have tax compliance incorporated within them.
This self assessment process is, therefore, not a substitute for more detailed review processes and monitoring programs that you already have in place.
Each entity is unique - the focussing statements provided in the guide will not cover all elements of your GST governance and risk management frameworks. You should apply good governance and effective risk management principles in managing all of the unique aspects that impact your GST obligations.
When to conduct an assessment
We recommend that you use this guide periodically as part of your GST assurance and compliance review processes. You may also consider adding or altering some of the content so the guide aligns with your entity's GST governance and risk management processes.
Changes to your entity's key tax personnel or advisors may also be a trigger point to conduct an additional self assessment.
We recommend that after completing a self assessment, you escalate the outcomes and findings to relevant stakeholders such as senior tax managers, the chief financial officer, internal audit or assurance areas and, where appropriate, the audit committee, board or chief executive officer.