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Tax governance

Last updated 3 July 2023

The Next 5,000 streamlined assurance review focusses on 3 of the 7 principles of effective tax governance for privately owned and wealthy groups:

  • accountable management and oversight
  • recognise tax risks
  • seek advice.

These principles help us understand the processes and controls being used by the entities that form part of this review.

Evidence of effective tax governance

We typically request documentary evidence setting out the following:

  • key tax administration roles and responsibilities for internal and external personnel
  • end-to-end tax return preparation processes including names and versions of accounting software and tax systems used for          
    • record keeping
    • preparing tax returns and schedules.
  • process to identify material transactions and potential tax risks.

We will ask for supporting evidence of these processes and controls. This may include documented policies or written guidance available to key decision makers and employees such as:

  • instructional manuals
  • exception reports
  • internal governance reviews
  • written procedures such as flowcharts, checklists and templates.

If you have no written documents, you should state this.

For more information on the administration of tax governance see Tax governance guide for privately-owned groups.

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