The Governance Over Third-Party Data – supplementary guide is a companion to the ATO’s Tax Risk Management Governance and Review Guide and has been developed in consultation with stakeholders including key accounting firms, superannuation funds, financial services technology providers, industry associations and government agencies.
The aim of the new guide is to enable entities, which rely on high-volume transactional data from third-party providers, to develop a strong governance framework that includes third-party data tax controls to ensure information being reported to investors, members and regulators is correct.
The ATO said investment industry entities should use this supplementary guide to develop and implement third-party data tax controls tailored to their business.
It said the office expects entities to fully implement appropriate tax controls over the next 18-24 months.
To enable this transition the ATO said the guide should be used to document a self-assessment of businesses’ third-party data tax controls and identify any gaps. These can then be used to develop an implementation plan.
In its future engagement with investment entities, the ATO said it will look at the steps they have undertaken to design and implement these controls.
