What things do you need to consider for effective tax governance?
Take a look at the following section to know what 7 principles you need to follow:
1. Accountable management
As a business owner, you need to understand your super and tax obligations, including registrations, filing, reporting, making payments, and record-keeping obligations. The duty for tax governance is shared with small business accountants so you can be confident about your tax accountant’s role in meeting super and tax obligations.
2. Identify tax issues and risks
Important processes and procedures are there to support compliance with the group’s super and tax obligations and that help the group recognise and manage tax risks that may arise from their activities before they cost you big. You need to consider your taxes for decision-making processes and you’ll be notified about the results of the decisions. When tax issues have been identified, there will be a plan to manage those issues and you can seek help from a reliable accounting firm in Melbourne.
3. Seek Advice
You can seek help to remove tax issues. You can go through ATO guidance when necessary. Generally, it may have a documented processes to:
- inform tax advisers about significant changes
- ensure assumptions and facts that advice depends on are accurate and not superseded
- consider guidance published by the ATO
- explain the thresholds for how and when to engage with the ATO
4. Integrity in Reporting
Business owners can view whether the financial records of the business show an accurate view. Controls and systems ensure accurate reporting, and these controls are used to be reviewed periodically to make sure they remain effective. Accurate record-keeping can help you maintain essential documentation for a specific period and to make sure that information can be accessed easily.
5. Productive and professional working relationship
You must have an open, respectful, transparent, and professional working relationship with the ATO. Through ATO’s engagement with you or your tax advisers, the ATO aims to create a healthy relationship to overcome any issues.
6. Lodgments and payments on time
Effective tax governance is demonstrated if you meet obligations, including filing and payment obligations on time. Tax liabilities are paid on time. If you are not able to pay on time, then you engage with the ATO, and you must have a valid reason for not paying on time. Apart from this, you need to seek help from a bookkeeper for small businesses so they can keep financial records ready. These records will be beneficial for accountants at the time of tax lodgment.
7. Responsible behaviour
Responsible behaviour includes more than only compliance with the law. Effective tax governance not only ensures correct reporting, but also helps you avoid behaviours related with tax avoidance, manipulation, and schemes. You can choose accounting in Melbourne to keep your company updated with the latest rules and regulations from ATO.
What benefits you can get with effective tax governance?
You can have various benefits, such as:
- Supporting business planning through expert advice helps business stability and avoids unnecessary risks.
- Building the management capability and giving real-time assurance so that business owners can improve the performance of the business.
- Helping manage the business and commercial risks.
- Preventing fraud in the business.
- Facilitating compliance with other rules and regulations, such as trust laws, corporate regulations, and state taxes.
- Making sure of accurate financial reporting and improving the accuracy of business records.
The blog highlights the principles of effective tax governance. As a business owner, you must know about those principles. Moreover, make sure you have a reliable tax agent in your company so you can be sure that everything is going well in the company in terms of business finances and taxes. For more information, get in touch with Reliable Melbourne Accountants.