Introduction
Welcome to the Tax Governance Self-Assessment. Tax governance is a fundamental aspect of fiscal and social responsibility, both for individuals and businesses. It involves understanding and complying with the tax laws and regulations that govern your organisation’s financial affairs. This self-assessment is designed to help you evaluate your organisation’s level of tax compliance, identify areas where you may need to improve, and take proactive steps towards responsible and ethical tax management. This self-assessment will guide you through various aspects of tax compliance, from understanding tax obligations to keeping accurate records and staying informed about changing tax laws. Take time to reflect on your practices and consider how you can enhance your organisation’s tax governance for a more financially secure and ethically responsible future.
About the Tax Governance Assessment
The Tax Governance Assessment allows organisations of all sizes to complete a suite of questions aligned to globally recognised best practice governance guidance and frameworks including OECD, COSO and ISO, identifying weaknesses in systems and offering access to pre-emptive solutions. The scorecard includes 25 questions that assess your current control environment, approach to tax governance and risk management, key control activities and mechanisms for internal/external communication. The self-assessment questionnaire should take no longer than 15-20 minutes to complete and will provide a quick and easy evaluation to help determine if your tax governance arrangements are operating effectively or where there is room for improvement. After completing the questionnaire, we will evaluate your responses and provide you with a personalised scorecard with recommended actions to help improve your tax governance practices. After you complete the assessment, you will receive a comprehensive report summarising the maturity of your organisation’s tax governance arrangements, highlighting any potential weaknesses in your current tax management program and any compliance gaps that may expose the organisation to negative consequences. It can also assist in evaluating if the business is ready to stand up to regulatory scrutiny from tax authorities.
Why should I care about Tax Governance?
Tax governance is a critical and multifaceted aspect of society that should concern individuals for various reasons. First and foremost, it ensures legal compliance with tax laws and regulations, safeguarding against fines, penalties, and legal consequences for both individuals and businesses. Beyond legal obligations, tax governance reflects a sense of financial responsibility by funding essential public services like education, healthcare, and infrastructure, contributing to the well-being of communities and nations. Moreover, it aids in risk mitigation, reducing the chances of audits, investigations, and disputes with tax authorities, thereby saving time, money, and stress.
Tax governance is vital for proper financial management and compliance. Ignoring tax laws can lead to financial instability and tarnish your organisation’s reputation. On a broader scale, effective tax governance is a catalyst for economic development, fostering stability and growth. A well-regulated tax system can attract foreign investment, create jobs, and stimulate economic progress. Furthermore, tax governance holds ethical implications. Adherence to tax laws is not just a legal matter but also a question of social responsibility and ethics. Engaging in tax evasion or aggressive tax avoidance can undermine the public good and erode trust in institutions. Additionally, it influences an individual's or business's reputation and trustworthiness. Demonstrating good tax governance practices can enhance one's standing within the community and the business world. It also supports social equity by addressing wealth disparities, promoting a fairer and more just society.
In an increasingly interconnected world, tax governance extends to global implications. International tax treaties and agreements affect cross-border transactions and investments, making it essential for individuals and businesses engaged in global activities to comprehend and adhere to these rules. In summary, tax governance is not merely about following the rules; it carries significant social, economic, and personal ramifications. Caring about tax governance ensures responsible and ethical contributions to the community and society at large.
Are you Tax Compliant?
Ensuring tax compliance involves several key steps. Firstly, it's essential to understand the tax laws relevant to your specific situation, considering factors such as income, employment, business activities, and location. Accurate record-keeping is crucial, encompassing detailed financial transaction records and relevant tax documentation. Regular and timely submission of tax returns, which may vary depending on individual circumstances, is imperative. Payment of taxes by their due dates, including income, property, or sales taxes, must be made accurately in line with income and deductions. Reporting all income sources is vital to avoid penalties and legal consequences. Leveraging eligible deductions and credits can legally reduce tax liability. Therefore, keeping abreast of evolving tax laws is also essential, as changes can affect tax compliance. Seek professional guidance for complex financial situations from tax professionals like CPAs or tax lawyers. Keeping records of all tax-related documents, reviewing past returns for accuracy, promptly responding to tax authorities, and adhering to filing and payment deadlines are key to maintaining tax compliance. Tax governance is about exercising diligence, understanding tax laws, and staying informed.
How to maximise value from the questionnaire
There are a number of ways to get the most out of the questionnaire. If you believe you have an informed perspective of the tax governance arrangements in your organisation, you can complete your own assessment of how the organisation’s tax governance program is performing. Alternatively, you can undertake the assessment with colleagues who have greater insight on the tax subject such as the Financial Controller or Tax Manager. There are also a number of free online live polling tools that you can use to enable others in the organisation to provide their informed view on the questions which may provide a broader organisational perspective. Finally, you can undertake a facilitated assessment with your professional services provider. Using their anonymous voting software in a workshop setting, you and your team will get a more complete picture of your organisation’s approach to tax governance.
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About the questionnaire
You will need to first register in order to complete a questionnaire and view the scorecard showing the results of your assessment. The results will be accompanied by some general comments on potential actions that can be taken to improve tax governance in your business. The potential actions listed on the scorecard should not be construed as providing legal or commercial advice. They are area(s) that have been identified, where you may wish to seek professional advice or purchase documents, tools and resources from the GRCReady library of tax products to support further work in this area. After you complete the assessment, you will receive a comprehensive report summarising the maturity of your organisation’s tax governance arrangements including advice on responding to tax non-compliance, implementing a tax governance framework and a suggested roadmap.
Completion of any of the questionnaires will help identify areas where you could do with a little support as well as provide practical tips to help improve your tax governance practices. With your permission, we may share the results of your tax questionnaire with your professional advisor to enable them to have an informed conversation to help improve your tax governance practices.
I consent to GRCReady sharing the results of my tax governance evaluation questionnaire with my professional adviser.