Tax risk management: what you need to know

Do you have the right strategies and policies in place to manage tax risk?

Having in place appropriate strategies and policies to manage tax risk is one aspect of good corporate governance.

Updated 30 October 2017

The presence and testing of an internal control framework should be an integral part of your risk management framework.

Having in place appropriate strategies to manage tax risk can reduce the risk of your client being the subject of an audit or reduce the adverse consequences of an audit should they be selected.  This includes audits by any agency for which you lodge a return on behalf of your clients.

A recent live chat provided you with the opportunity to ask questions about different aspects of tax risk management, including:

  • the current approach of the ATO to tax risk management
  • how to reduce the probability of your clients being subject to audit activity
  • how the ATO detects those who don’t do the right thing
  • how the ATO deals with those who don’t do the right thing
  • steps to manage tax risk, such as considering matters on which you give advice, client selection and client verification
  • mitigating the cost of responding to a tax or government audit.

Expert presenters were:

  • Gavan Ord, CPA Australia manager, Business Investment Policy
  • Phil McCann, principal, McCann Financial Group
  • Gavin Swan, director, Absolute Accounting Services
  • Drew Fenton CPA, managing director, Fenton Green and Co

Read the transcript, which is available as a PDF download. 

Further resources

Read next: ATO alerts vs rulings: is there a change in direction?

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