Each business’ approach to tax governance will be different. The form of tax governance structure that is implemented will depend on the size of the business, the industry in which it operates, the level of focus by senior management and tax authorities, and the size and maturity of the tax team.
For all businesses, however, the approach to tax governance should be led from the top. It is important to have senior leadership buy-in, creating a strong risk management culture.
A best practice tax governance framework should include consideration of both systems and people. It should have a clear approach to ongoing monitoring and review.