Tax risk and corporate governance: The ATO's growing interest in taxpayers' self risk management paper

Published on 30 Oct 12 by NEW SOUTH WALES DIVISION, THE TAX INSTITUTE

In 2010, the ATO announced that it would be placing increasing importance on taxpayers’ self-management and mitigation of their tax risks. This is otherwise known as good Tax Corporate Governance (TCG). This paper covers how to meet the ATO’s expectations for TCG and what to expect if the ATO reviews your risk management systems, including:

• the ATO’s requirement for documented policies and procedures
• creating or improving a TCG policy document – what does it look like and what would it include?
• how to implement a robust TCG framework in your organisation
• commercial and operational benefits an entity realises on implementation of a good tax risk management system
• responsibilities for and interests in TCG for the Tax Manager, Tax Function and the Board
• ATO review and audit of TCG – what to expect.

Author profiles

Glenn Williams

Glenn is a Partner in Ernst & Young's Tax Controversy Practice. Glenn has in excess of 25 years corporate and international tax experience. Glenn is experienced in evaluating risk and dealing with senior financial management and the Board on these matters and has a proven record in successfully dealing with ATO reviews and audits. Glenn is an advisor to the G100 group and the Inspector General of Taxation and is also a member of a number of ATO working groups, including recent work in relation to Reportable Tax Positions. - Current at 25 August 2011

More by Glenn WILLIAMS

• ATO risk management framework - Refurbish, renovate or rebuild paper - 20-September-2011
• Tax administration without borders paper - 18-May-2010

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Emily Marsden

Emily is a Senior Manager and Lawyer within EY's Tax Policy & Controversy Team. In this role, she provides technical and strategic assistance in relation to ATO enquiries. This includes advising taxpayers on their rights under audit, disputes, tax office investigations, legal professional privilege, administrative concessions, dispute resolution, penalties and interest. Emily specialises in mitigating tax risk within an organisation. This includes drafting and implementing formally documented tax risk policies; updating existing policies (to reflect law changes), training organisations on tax risk management, and, advising on ATO enquiries about tax corporate governance. Emily also assists Boards understand their obligations for tax corporate governance. - Current at 08 July 2014

More by Emily MARSDEN

• Directors and the new Commissioner paper - 11-September-2014
• Disputed tax liabilities and Section 255-10 Taxation Administration Act 1953 - 01-April-2009

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