Directors Responsibilities in Tax Risk Management

This week on You Legal TV we discuss how it has never been as important as now to consider Tax Risk Management. Watch the episode here:

See below for a complete transcript of this episode -

Welcome to You Legal TV.

In January, the ATO released a new Tax Risk Management and Governance Review Guide, highlighting directors’ responsibilities in their company’s tax risk protocols.

The Guide calls for effective policies to be put in place to assess any potential tax implications of company transactions. Cases, where there is high tax risk, include:

  • Restructures, consolidations mergers and acquisitions;

  • Transfer pricing and international transactions;

  • Historical performance that is inconsistent with industry benchmarks;

  • Unexplained losses that are carried forward for a long period of time; and

  • Tax minimisation arrangements.

Ideally, a company’s risk management framework should be updated regularly. If a company is found in breach of tax laws, directors can be held personally liable.

Visit our blog for more information on tax risk management or contact us for advice on your legal obligations. We’re always happy to help.

The ATO's Call for Proactive Tax Risk Management in 2017

What Should I Do Next?

Contact us if you would like to have any advice on managing tax risk.  Our lawyers at You Legal will be happy to assist you in whatever way we can.

* This blog is for general guidance only. Legal advice should be sought before taking action in relation to any specific issues.

ATO, Director's Liability, Risk, Risk Management, Tax, You Legal TVSarah Bartholomeusz