On April 1, 2022, the Australian Tax Office (ATO) published a new third-party data governance guide that focuses on investment industry tax controls. Here, the investment industry includes large superannuation funds, managed investment trusts, and insurance parties. These entities rely on high volume transactional data from third-party providers. In order to help them develop a strong governance framework, the ATO worked with key stakeholders to draft this new supplementary guide. The aim of this third-party tax control framework is to report correct information to investors, members, and regulators.
Investment industry entities should refer to the new guide in order to document a self-assessment of their third-party data tax controls, identify gaps, areas of improvement, and eventually an implementation plan. The ATO expects investment entities to implement these new controls within the next 18-24 months and will be reviewing these processes as the ATO engages with these entities in the future.
Take a look at the new supplementary guide for large superannuation funds, managed funds and insurance companies on third-party data tax controls here:
The Tax Risk Management and Governance Review Guide here:
And the April 2022 ATO announcement here: