Justified Trust
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Managing Corporate Tax Risks – Download the Report

 

Like many other revenue authorities around the world, the Australian Taxation Office (ATO) has advanced it’s ‘e-audit’ capability via technology that tests files stored in a taxpayer’s electronic records to verify if the stored data is accurate and complete.

While not an audit as such, justified trust (originally an OECD concept), is a structured approach that will be applied by the ATO to seek a level of assurance from a taxpayer that the right amount of tax is reported and paid. The level of assurance goes beyond tax technical risk and includes operational risk for all tax compliance obligations – people, processes, data and technology.

To achieve justified trust, under the ATO’s tax risk management and governance review guide (the Guide) at the senior management level, the ATO expects the Board to oversee the implementation and continued operation of an entity’s tax governance framework. Managing day-to-day controls and processes to ensure compliance with tax obligations is not a matter for the Board, but a responsibility of management.

The Guide has been part of the ATO’s decade-long tax risk management focus as depicted in the timeline below

By now, Boards and senior management of ASX Top 100 through to Top 1000 organisations should be familiar with their obligations under the ATO’s justified trust initiative. Furthermore, they should be seeking to proactively prepare (‘self-assess’) their justified trust position in a structured and efficient manner and assess the management and governance of your organisation against the ‘best practice’ outlined in the Guide.

Do you have a tax risk governance framework in place, and are the controls and processes under the framework embedded in your business practices?

Are you in a position to benchmark your tax maturity?

Can you proactively prepare for the initiative in a structured and efficient manner? Do you have the necessary systems and process in place for this?

Can you or your stakeholders get the right information on time to assess tax risk?

Wolters Kluwer recommends corporates conduct an initial gap analysis that compares and contrasts their tax risk governance framework with the Guide.  If you are using tax technology solutions such as CCH Integrator, you have a head start compared to others who may be using manual spreadsheets reporting off multiple data sources with minimal controls. CCH Integrator has the key tools and capabilities for your organisation to be at the forefront of best practice when it comes your tax control framework.

CCH Integrator will act as a single source of truth to embed, manage and monitor the tax controls for your tax governance and control framework. It can also:

  • Facilitate a whole of enterprise self-assessment on the tax maturity of your organisation – by collaborating with tax, finance, internal audit, risk/governance, technology teams etc. under one single platform
  • Help recognise gaps against the Guide
  • Help plan, prioritise and embed solutions to address gaps – and provide remediation plans (justified trust)
  • Enable upstream compliance and stakeholder reporting (Board Level Controls)

To find out more about how CCH Integrator can help strengthen your justified trust position or simply how it can help fulfil and improve your tax compliance, contact us.

Events & Recordings

CCH Networks – Justified Trust Workshop

19 September 2018, 11:45 AM – 2:00 PM

Join us this September to hear directly from the ATO, our expert commentators and Wolter Kluwer tax technology leadership in this important Justified Trust Workshop.

VIEW RECORDING

CCH Networks – Justified Trust Live Webcast

19 September 2018, 12:15 PM – 2:00 PM

If you can’t attend our event in Sydney, join our live webcast to hear directly from the ATO, our expert commentators and Wolter Kluwer tax technology leadership in this important Justified Trust Workshop.

VIEW RECORDING

Resources

Managing corporate tax risks - and getting it right

This whitepaper is important reading for any large business in Australia facing renewed corporate tax activity from the ATO.

DOWNLOAD REPORT

What is justified trust and what does it mean for Australian businesses?

The Australian Taxation Office’s (ATO’s) justified trust initiative is well underway as it seeks to build and maintain community confidence that taxpayers are paying the right amount of tax. If you are a company director, did you know that you now have a personal responsibility for ensuring that your company’s tax governance and risk framework?

READ MORE

The reason why tax functions should not be (entirely) outsourced

The ATO has embraced the OECD’s concept of Justified Trust to drive unprecedented levels of regulator activity. Identification of issues and areas of risk may result in extended regulator engagement, placing further demands on an organisation’s already stretched resources.

READ MORE

Contact

Contact us today to discuss how we can help with your reporting and compliance requirements

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