On April 1, 2022, the Australian Tax Office (ATO) unveiled a significant resource for the investment industry with the publication of a new third-party data governance guide. This comprehensive guide is specifically tailored to address tax controls within the investment sector, encompassing large superannuation funds, managed investment trusts, and insurance parties. These entities heavily rely on voluminous transactional data sourced from third-party providers, making effective data governance critical to their operations.
Developed in collaboration with key stakeholders, including industry experts and regulatory bodies, the new third-party data governance guide represents a collaborative effort to enhance tax compliance and reporting standards within the investment industry. By providing a structured framework for implementing robust governance practices, the guide aims to empower entities to effectively manage and control their data assets, ensuring accuracy, reliability, and integrity in tax reporting processes.
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 Australian Tax Office expects investment entities to implement these new controls within the next 18-24 months and will be reviewing these processes as the Australian Tax Office 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: