The attitudes of many governments, shareholders and boards of directors to tax are changing – managing tax risk and reputational issues are high on the agenda.

For today’s tax directors, it is essential to meet compliance obligations, work with the business, and communicate internally and externally on the group’s tax position, while improving their efficiency and cost-effectiveness. Tax directors need to make sure their tax functions are equipped with the capabilities they need to meet these varied demands.

In Australia, the importance of demonstrating tax governance measures are in place has experienced a step change. The Australian Taxation Office has established a tax governance benchmark through its Justified Trust methodology, which is being reviewed formally through its Top 100, Top 1000 and private groups compliance programs.

In our experience, setting a tax strategy, putting in place a governance framework and taking steps needed to bring it to life are the building blocks to success. Establishing the right operating model for your tax function is key.

How KPMG can help

KPMG Tax Governance & Transparency team can help you:

Establish a clear tax vision and strategy that is aligned with the business objectives of the wider organisation and articulates how the tax function will deliver value

Determine your appetite for risk including reputational risk

Implement a governance and control framework that defines the taxes for which the tax team is responsible

Implement processes and controls to manage your tax risks across all of the taxes for which you are responsible

Analyse and test existing tax control environments

Create the right operating model for your tax function, mapping out the people, processes and technology you need to efficiently deliver the agreed tax strategy

Benchmark your tax function and put in place relevant key performance indicators (KPI) to drive the right behaviour and demonstrate success

Prepare, enhance and support in delivery of board communication and training on tax governance matters

Obtain visibility over your global tax data and develop a plan to communicate your tax position and comply with legislative requirements, whether you are reporting to the tax authorities or the public

Prepare or review tax transparency reports

Review tax governance robustness as part of tax due diligence and post deal integration projects

Tax Governance services and insights

KPMG provides a range of services and thought leadership related to Tax Governance.

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