Tax governance refers to the framework of policies, processes, and practices that organizations establish to effectively manage their tax-related matters. It involves ensuring compliance with tax laws, minimizing tax risks, and making informed tax decisions. Key aspects include:
- Tax Compliance: Adhering to tax regulations and filing accurate returns.
- Tax Risk Management: Identifying and addressing potential tax-related risks.
- Transparency: Disclosing relevant tax information to stakeholders.
- Corporate Values Alignment: Integrating tax policies with broader company values.
- Decision Support: Establishing clear processes for tax-related decision-making.
- Board-Level Involvement: Board-backed tax policies and alignment with corporate strategy.
- Effective Communication: Internal and external communication of tax practices.
- ESG Consideration: Linking tax governance with Environmental, Social, and Governance (ESG) goals.
Effective tax governance ensures ethical tax practices, manages tax-related controversies, and fosters trust with stakeholders. It involves defining tax objectives, managing risks, and aligning tax strategies with broader corporate governance principles and values.
Sources
- loctax.com – How does a Tax Governance Platform work
- ey.com – Why tax governance is key in an era of more tax risk and controversy
- deloitte.com – Tax governance – The ultimate compliance solution
- europa.eu – Draft Communication on Tax Good Governance
- linkedin.com – Tax Governance – What does it all mean?
- bdo.global – Tax in Governance
- pwc.com – Tax Corporate Governance Framework – Does one size fit all?
- kpmg.com – Tax governance: an ESG essential
- ato.gov.au – Seven principles of effective tax governance
- cpaaustralia.com.au – Navigating global tax governance: the challenge for regulators
