Corporate governance encompasses the rules, relationships, systems and processes under which authority is exercised and controlled within businesses. It comprises the mechanisms by which businesses, office holders and those in control are held to account.
For private groups, there is a growing expectation for them to have a level of governance that ensures accountability, transparency and integrity.
For example, with the introduction of corporate transparency measures, some private groups now have to consider the publication of their tax information as a factor in managing their reputation with stakeholders, customers and the broader Australian community.
Depending on the size and nature of your business, you may already have governance arrangements in place to meet the expectations of various stakeholders and authorities.
A subset of corporate governance is tax governance. It means having a framework in place to identify, assess and manage tax and superannuation risks. Effective tax governance can provide a level of confidence that you're paying the right amount of tax.
Effective tax governance builds a sense of confidence for the ATO that your tax affairs are under control, helping you to achieve certainty about your tax affairs, which may ultimately mean reduced compliance costs for your business.
Find out about
- Benefits of effective tax governance
- Seven principles of effective tax governance
- Working with the ATO
- Key governance steps and processes
- The Information System Risk Assessment tool