Tax governance and tax risk management are essential to good corporate governance. Tax governance encompasses a well-defined and communicated corporate policy on taxation that is approved at the strategic level of a company, and reflects the attitude and culture of the company towards managing its tax risks. Tax risk management involves implementing a robust tax control framework to identify, mitigate and monitor key tax risks on an ongoing basis.
A company that adopts good tax governance and tax risk management practices can give confidence to its stakeholders and the general public that it is transparent in its tax matters and is contributing its fair share of taxes.
To demonstrate that it has good tax governance and tax risk management, a company may participate in the following IRAS’ initiatives:
- Tax Governance Framework (TGF)
- Tax Risk Management and Control Framework for Corporate Income Tax (CTRM)
- GST Assisted Compliance Assurance Programme (ACAP)
Scope of the Tax Governance & Tax Risk Management Initiatives
The objective of IRAS’ Tax Governance and Tax Risk Management initiatives is to promote the adoption of good tax governance principles and practices among large companies, although all companies may adopt the initiatives when ready.
Adoption of TGF, CTRM & GST ACAP
The TGF, CTRM and GST ACAP are voluntary compliance initiatives that operate independently, and a company may choose to adopt each or all of the initiatives depending on its readiness and business needs. Companies are strongly encouraged to adopt all 3 initiatives to demonstrate their good tax governance and tax risk management.
Learn more about the Tax Governance Framework (TGF), Tax Risk Management and Control Framework for Corporate Income Tax (CTRM) and GST Assisted Compliance Assurance Programme (ACAP), including how to adopt the initiatives and the benefits of adoption.