Elements and Performance Criteria
- Assess tax liabilities
- Organisational and operational tax liabilities are identified by analysis of external and internal taxable transactions
- History and trends in obligations arising from organisational transactions are quantified using standard accounting techniques
- Data from transactions are analysed to resolve ambiguities and determine the nature of taxation options
- Effects of taxes are analysed and scheduled by assessing methods of determination, tax bases and timing of incidence
- Optimise tax positions
- Implications of obligations on operations and structures are assessed to develop a range of treatments and responses
- Financial management strategies are developed to ensure the alignment of cash flow with incidence and schedules of tax payments
- Trends in tax liabilities are analysed and monitored to develop a history of obligations and compliance
- Establish processes and plans
- Management plans and record keeping systems are developed to implement financial management strategies and ensure the maintenance of an audit trail
- Management processes are documented to ensure they promote standard application of compliance requirements
- Taxation liabilities are derived from income and expenditure estimates using standard accounting techniques
- Budgets are prepared in accordance with estimates and reviewed to ensure ongoing relevance of liability estimates
- Evaluate tax policies
- Variances between liabilities and taxation plans are analysed to identify errors in tax strategies
- Performance of tax liabilities in similar or related organisations and operations are monitored and evaluated to measure tax effectiveness and prepare benchmarks and standards
- Data is reviewed for accuracy, completeness and reliability of assumptions in liability projections
- Review tax compliance
- The achievement of performance indicators is assessed and reviewed against key result areas
- Taxation preparation processes are monitored and reviewed in line with professional taxation and accounting standards requirements
- Failures in compliance are analysed to diagnose shortcomings and to remedy processes in line with taxation authorities' requirements