Now is a good time to talk to your clients about tax governance.
A tax governance framework can help clients meet their tax obligations, reduce risk, and feel confident all bases are covered.
Tax governance that works for your client
Tax governance is not a one-size-fits-all approach. It will look different for every business.
A fit-for-purpose tax governance framework should reflect the size, complexity, and risk profile of a business.
As a tax agent, you’re well placed to support your clients in building a practical and proportionate tax governance framework that works for their business.
It’s in a business's best interests to have a tax governance framework. If we find an error during an investigation, and need to consider imposing a penalty, we can take into account the business's tax governance framework when considering which penalty to apply.
How you can help
We recommend you take time to discuss tax governance with your clients at your regular client meeting.
Here are some ways you can help your clients.
- Ensure documented procedures are in place for key taxes such as income tax, GST, PAYE, FBT, and withholding taxes.
- Check whether tax processes and controls are appropriate for the size and complexity of the business.
- Identify areas where tax errors are most likely to occur and implement practical controls to manage those risks.
- Encourage early identification and resolution of tax issues before they become significant compliance concerns.
- Conduct regular reviews of your client’s tax governance framework, especially if their business grows or changes.
A proactive approach to tax governance will help reduce the risk of major problems cropping up further down the line.