In this final episode, Louis Carney and Sam Mohammad wrap up their series on the ATO’s 7 principles of effective tax governance for private groups.

They share five practical tips to help private entities strengthen their tax control frameworks and improve outcomes during ATO reviews. Learn the importance of proactive governance, documentation, and analytical tools to demonstrate compliance and transparency.

Top 5 Tips for Private Groups on Tax Governance

1. Start with a Fit-for-Purpose Tax Policy
   Don’t wait—develop a board-endorsed tax policy tailored to your business. Avoid generic or AI-generated templates that don’t reflect your operations.
2. Conduct a Gap Analysis
   Benchmark your current framework against the ATO’s 7 principles. This helps identify areas for improvement and signals your commitment to tax compliance.
3. Document Everything
   If it’s not documented, it doesn’t exist. Ensure key procedures are formally recorded, including:
   - Income tax return preparation
   - BAS preparation
   - FBT return process
   - ERP/IT system flows
   - Tax risk matrix
4. Make Voluntary Disclosures Proactively
   Don’t wait for an ATO review. Periodic disclosures and BAS amendments show your systems are robust and transparent.
5. Use the GST Analytical Tool (GAT)
   Perform annual comparisons between your P&L and BAS data. This helps explain discrepancies and reduces the risk of ATO scrutiny.

For more information on these crucial elements of tax governance, please join us in the twelfth instalment of RSM’s Demystifying Tax Governance series.  

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