At BDO, we know businesses are facing challenges as the regulatory environment continues to grow increasingly complex. Demonstrating a company’s tax risk is adequately managed is required to gain trust from the board, investors, and the Australian Taxation Office (ATO).
One of the most significant changes in tax governance occurred in 2017 when the ATO adopted the Justified Trust concept from the Organisation for Economic Cooperation and Development (OECD). The goal of the Justified Trust program is to further enhance the level of confidence in taxpayers and embrace the global view that tax risk management should be a part of good corporate governance. If taxpayers are able to provide documentation for how they’ve demonstrated adequate tax governance embedded in positions taken, disclosures in returns and tax calculations, the ATO and public can gain Justified Trust in the company.
BDO and Tax Governance
Our team has a wealth of experience in helping companies develop proactive approaches to tax governance through being involved in Top 100 reviews, developing a tax risk assessment toolkit, and working with tax directors to establish processes and controls for managing tax risk. From small and medium-sized enterprises to Top 100 companies, our team can help you:
- Reflect on current tax strategy and policy to assess the tone at the top surrounding your company’s tax profile and appetite to risk
- Develop tax risk strategy and risk compliance framework
- Implement formally documented processes and controls for managing tax risks across all jurisdictions
- Create a process to effectively monitor, prioritise, and report tax risk
- Prepare for a Top 1,000 review
- Systematically address ATO expectations
- Prepare Private Binding Rulings applications and Reasonably Arguable Position Papers
- Respond to ATO questionnaires
- Assist with ATO risk reviews and audits
- Negotiate settlements and drafting deeds
- Review data management and document retention policies
- Assist in adoption of the voluntary tax transparency code.
A one size fits all approach does not apply when it comes to achieving Justified Trust. Get in touch to learn more about how our experienced advisors can help.