TAX RISK MANAGEMENT POLICY - Accent Gr · § Being cognisant of the business operations such that tax risks are identified and managed 1.3 Tax Risk Actions Tax risk, particularly

TAXRISKMANAGEMENTPOLICY

1.1 Introduction

As with the management of other risks, the Company considers tax risk managementfundamental to maintaining efficient and effective operations. This Policy outlines theframework by which the tax obligations of the Company are met from an operational,governanceandtaxriskmanagementperspective.ThispolicycoverstheCompany’sAustralianandNewZealandbusinesses.

1.2 TaxRiskManagementRolesandResponsibilitiesThetaxriskattachingtoanytransaction/investmentshouldalwaysbeconsideredcarefullyandfactoredintoeverycommercialdecision.Staffaccountableforthemanagementoftaxrisksarealsoaccountable for thecontinuedadequacyandeffectivenessof controls,primarily throughself-assessment.ThespecificriskmanagementresponsibilitiesforeachrolewithintheCompanyaresummarisedbelow:Title RolesandResponsibilities

Board § Overall responsibility for themanagement and control oftheCompany.

§ Approval of and ultimate responsibility for corporategovernanceandthetaxriskmanagementframework.

§ Oversightoftheestablishmentandcontinuedeffectivenessoftheriskmanagementandinternalcontrolsystem.

§ Responsibleforsatisfyingitselfannually,ormorefrequentlyas required, that management has developed andimplemented a sound system of risk management andinternalcontrol.

§ Detailedworkon this taskmaybedelegated to theAuditandRiskCommittee.

AuditandRiskCommittee

(asubcommitteeoftheBoard)

§ Periodic oversight of the risk management programestablishedandmaintainedbymanagement

§ Reviewofchangestotheriskmanagementprogram§ Oversightof theadequacyand comprehensivenessof risk

reportingfrommanagement

FinanceDirector

§ CommunicatingtheCompany’sdesiredtaxriskprofileandapproachtotaxriskmanagement

§ Providingassuranceto theBoardthat theexisting tax riskmanagement framework will allow all significanttransactions and events to be assessed as part of everycommercialdecisionrelatingtoeachtransaction

§ Defining and communicating tax policies to the FinanceFunction,theBoard,sub-committeesandtootherBusinessUnitsifnecessary

§ ProvidingtheBusinessUnitswithsatisfactoryinformationin

regardstotaximplications§ SchedulingmeetingswithBusinessRiskOwners todiscuss

andassesscurrenttechnicaldevelopments§ Responsibleforthedesign,implementationandreportingof

the adequacy of the tax risk management and internalcontrolsystems

§ ResponsibleforreportingtotheAuditandRiskCommitteeon the key risks, and the extent to which these risks arebeingmanaged

§ Responsible for thedevelopment andmonitoring of a taxrisk framework,ensuring clear riskownershipandhelpingriskownersdefineandmanagearobustcontrolset

§ Responsibleforescalatingtransactionsortaxissuesthathebelieves shouldbebrought to theattentionof theBoard,includingmattersthatareescalatedbytheBusinessUnits

§ Assigning Risk Owners to particular taxes, events orcomplianceactivities

§ Responsible for the final sign off of tax compliance/reportingobligations

§ Responsibleformanagingtherelationshipwiththevariousstateandfederalrevenueauthorities.

ChiefFinancialOfficers(“CFO”)forTAF,AccentandHype

§ Responsible for theongoingmanagementof the risksandensuringthatallofthecontrolactivitiesareadequate

§ Responsible for the preparation of tax compliance/reportingobligations(apartfromincometax)

AccountingandReportingFunction

§ UnderstandinghowtheCompanymanagestaxrisk§ UnderstandingtheCompany’sdesiredtaxriskprofile§ Responsibleforapplyingriskmanagementwithinthescope

oftheirroles§ Being cognisant of the business operations such that tax

risksareidentifiedandmanaged

1.3 TaxRiskActionsTaxrisk,particularlythereputationalcomponent,extendsbeyondtheCompany’srelationshipwithRevenueAuthoritiesandimpactsalmosteveryareaoftheCompany,includingshareholders,investors, staff,management, theBoardandallotherstakeholders.Risk to theCompanycancauseasignificantnegativeimpacttotheCompany’sreputationand/orfinances.TaxriskanditsimpactonstakeholdersmustalsobemanagedbytheBoardinmeetingitsfiduciarydutiestoshareholders.Tax risks must be identified and escalated to senior management and/or the Board forconsideration, review and management; and, to mitigate the impact to the Company. Thefollowingcriteriawillassiststafftoprofiletaxrisktodeterminewhattaxrisksmustbeescalatedtoseniormanagementand/ortheBoard.Taxriskcanbedefinedasfollows:

Anyevent,action,or inactionintaxstrategy,operations,financialreporting,orcompliance

that either adversely affects the Company’s tax or business objectives or results in anunanticipated or unacceptable level of monetary, financial statement or reputationalexposure.

Inthecontextofthetaxriskmanagementprocess,thefollowingcategoriesofrisksshouldbeconsidered:

§ Financial risk –An adverse impact on cash as a result of tax (e.g. an unexpected taxpayment).

§ Compliance systems risk – an instance of inability to comply with regulatory andstatutoryrequirements(e.g.useof incorrectdata, late lodgementofataxreturnandATOscrutiny).

§ Operationalrisk–Theriskoflossarisingfrominadequateorfailedinternalprocesses,people and systems (e.g. inadequate documentation to support transactions, atransactionisnotimplementedinaccordancewithadvice).

§ StrategicRisk–Uncertaintiesanduntappedopportunitiesembeddedinthebusiness’soverallstrategic intent(e.g.reputationalriskresulting innegativepublicity,creatingahighriskprofilewithinthetaxofficeorahigherriskratingleadingtoincreasedcostsofcompliance).

Risks includetheexistingobligationstopayanamountasaresultofeventshappeninginthepresent,pastandfuture.

1.4 RiskManagementTheCompany’sphilosophyontaxriskmanagementistobalancethepreventionofunnecessarydisputeswithtaxauthoritiesthatmaygiverisetoreputationalriskandtopreserveinvestorvalue.Inthisregard,theCompanywillseekto:

§ Having strong technical support for tax positions, including opinions from externaladvisors(meetingthethresholdsdescribedbelowinsection1.8);

§ Clearexplanationanddocumentationofthosepositions,especiallyfactsandbusinesssubstance;

§ ProvideassurancetotheBoardthattheexistingtaxriskmanagementframeworkwillallow relevant tax questions to be considered as part of every commercial decisionrelatingtoeachtransaction;

§ Documentcontrolsandprocessesthatexisttomitigatepotentialrisks;§ Maintainstrongcomplianceproceduresensuringaccurateandcompletetaxreturns.§ Reduce identified tax risks, thereby assisting the Company’s compliance with the

regulatorrecommendationsandRevenueAuthorityguidelines;§ Maintaingoodworkingrelationshipswithtaxauthorities.

TheBoardrequiresanassessmentofriskandaratingforallidentifiedrisks.Indeterminingtheappropriate classification, regard should be had as to how the Revenue Authorities profilepubliclylistedcompanies(e.g.pastcompliancebehaviour,risksarisingoutofnewtaxlaw).Inassessingtheriskitisimportanttodeterminewhetherthelikelihoodandconsequencesoftheriskoccurringhavebeenconsideredanddocumented.

1.5 TaxRiskClassification

Tax risk assessment adopts the following low, medium, and high categories. These riskassessment categories are consistent with the Company’s Risk Matrix. The tax risk levelclassificationsbelowcontainbothqualitativeandquantitativefactors.TaxRisk

Description

RiskOwner

Low

ALowRiskclassificationgenerallyapplieswhere:§ There is an actual or potential instance of non-compliance with

taxationlawsandthetaxatriskislessthan$100,000;and§ Theapplicationofthetaxlawtothefactsisstraightforward;and§ Onpolicyorpracticalgrounds,theRevenueAuthoritiesareunlikely

totakeacontrarypositiontothatadoptedbytheCompany;and§ ThereislittleriskofreputationaldamageaccruingtotheCompany.

CFOandBusinessUnits

Meidu

m

AMediumRiskclassificationisusuallyappropriatewhere:§ There is an actual or potential instance of non-compliance with

taxationlawsandthetaxatriskisatleast$100,000butlessthan$500,000;and

§ There is somematerialuncertaintyconcerning theapplicationofthelawbyRevenueAuthorities;and

§ There is complexity concerning the applicationof the law to thefacts;and

§ Thesituationinvolvessomereputationalrisk.

FinanceDirector

High

AHighRiskclassificationapplieswhere:§ There is an actual or potential instance of non-compliance with

taxationlawsandthetaxatriskisgreaterthan$500,000;or§ Thereissignificantcomplexityconcerningtheapplicationofthelaw

tothefacts;or§ There is somematerialuncertaintyconcerning theapplicationof

thelawbyRevenueAuthorities;or§ Thereisareasonablelikelihoodofadverselegislativechange;or§ ThetransactionisofstrategicimportancetotheCompany;or§ Thetransactioninvolvessignificantreputationalorpromoterrisk.

FinanceDirectorandAuditCommittee

Risktreatmentinvolvesidentifyingtherangeofoptionsfortreatingrisk,assessingthoseoptions,preparingrisktreatmentplansandimplementingthem.TheRiskOwnersidentifiedabovearetodevelopaplantomanagethetaxrisksidentified,commensuratewiththeriskclassificationlevel.

1.6 AssessingRisk

a) Every2years(onarollingbasis),externaladvisersaretobeengagedtoreviewandreportoninternalrisksystemsandoutputsforeachBusinessunitrelatingto:§ PAYG(W)§ FBT§ SuperannuationGuaranteeCharge§ Payrolltax§ GST

§ StampDuty§ CustomsDuty§ ESSreporting

b) IncomeTaxreportingistobeoutsourcedtoexternaladvisors.

c) Every two years, external advisers are to be engaged to review systematic internal

transactions(i.e.dividends,crossbordercharges,loanaccounts)andreportriskstotheFinanceDirector.Suchreviewsmaybeundertakenonarollingbasis.

d) Anysignificantinternaltransactionorrestructureistobereviewedfortaxpurposesby

externaladvisors.e) Taxstatusreports(AppendicesAtoC)aretobeprovidedtotheAuditCommitteeona

biannualbasis.1.7 TaxPlanning

AcceptableTaxPlanningInrelationtoAcceptableTaxPlanning,taxisanimportantfactorinmanybusinessdecisionsandtaxplanninginsupportofcommercialactivityandoptimisationofreturnsforinvestorsisnormalandappropriate.However,theCompanyshouldnotengage intaxplanningthatgoesbeyondsupportforgenuinecommercialactivities.AggressiveTaxPlanningTheCompanywillnotengageinAggressiveTaxPlanning,asdefinedbytheOECDas:

§ Planninginvolvingataxpositionthatistenablebuthasunintendedandunexpectedtaxrevenueconsequences;or

§ Takingataxpositionthat isfavourabletothetaxpayerwithoutopenlydisclosingthatthereisuncertaintywhethersignificantmattersinthetaxreturnaccordwiththelaw.

Managementwill reviewallproposedtransactionsorarrangementsaspartoftheCompany’sestablishedtransactionapprovalproceduresandinlinewiththeappropriateescalationinordertoensurethattheCompanydoesnotengageinAggressiveTaxPlanning.Asabroadguide,transactionsorarrangementsexhibitingthefollowingfeatureorfeaturesmaybeconsideredtobeAggressiveTaxPlanningandwillbecloselyreviewedbyManagement.

§ transactionsthathavelittleornoeconomicsubstance§ transactionsbearinglittleornopre-taxprofitwhichrelyonanticipatedtaxreductionto

produceasignificantpost-taxprofit§ transactions involving contrived, artificial, transitory, pre-ordained or commercially

unnecessarysteps§ transactionsinvolvingunnecessarylayersofcomplexity§ transactions which have material economic terms that are inconsistent with market

norms§ transactionswhichprovidetheCompanywithcompensationthatappearssubstantially

disproportionatetotheservicesprovidedorinvestmentmade

§ transactionswheretheCompanypersonnelareincentivisedsolelyonthetaxsaved§ transactionswhich in substance produce unintendedmultiplication of tax benefits in

differentjurisdictions

1.8 CertaintyofTaxPositionsandLevelofSignOffRequiredIt is acknowledged that tax positions and the risks associated with these can be uncertain.However, the Company will balance considered tax planning with appropriate tax riskmanagementbyadoptingvalidandsupportablepositionsandmaintainingawarenessofotherprevailingviewsandrisks.Thelevelofopinionrequiredregardingthecertaintyofthetaxissuewilldependontheleveloftax risk involved. The table below indicates the minimum level of opinion required for aparticularissue.Managementhasdiscretionastowhetherahigherlevelopinionisappropriateforanyparticularmatter.Pleaserefertotherelevantdefinitionsbelowthetable.TaxRisk MinimumLevelofOpinionRequired Levelofsignoff

Low

OpinionbyCFOinconsultationwithanExternalAdvisor(ifrequired).

CFO

Medium

RAPorMoreLikelyThanNot(“MLTN”)opinionbyanExternalAdvisor.

ExternalAdvisor

High

FortheAustralianbusiness:MLTNorShouldopinionbyanExternalAdvisorand(whereappropriate):§ a second opinion from another External Adviser

(includingSeniorCounsel);or,§ Written guidance from the Australian Taxation

Office(e.g.aprivateruling,objection,etc.)FortheNewZealandbusiness:MLTNorShouldopinionbyanExternalAdvisor,approvalbytheFinanceDirectorand(whereappropriate):§ a second opinion from another External Adviser

(includingSeniorCounsel);or,§ Written guidance from the Inland Revenue

Department(e.g.aprivateruling,objection,etc.)

ExternalAdvisorandFinanceDirector

Definitionsoftheabovestandardsofopinionissetoutbelow:

Definitions

MLTNtobecorrect

Morelikelythannottobecorrect.AMLTNOpinionisanOpiniongivenbyanadvisorwhichsupportsthemeritsoftaxtreatmentofanitemtotheextentthatifchallenged,thepositionshouldbemorelikelythannottobecorrect.Innumericterms,aMLTNOpinionhasa51%(orgreater)chanceofoccurring.

Opinion AnOpinionisadviceexpressedwhichsupportsthemeritsoftaxtreatmentofanitem.Thisisbasedonananalysisofthepertinentfactsandauthorities

(suchasthelegislation,caselawandRevenueAuthorityguidance).Opinionscanbeobtainedfromadvisors(suchasexternalcounselorprofessionaltaxadvisors).LevelsofOpinioncanvaryintypeandweightingandinthatregard,arerelevantforprotectionagainstpenalties(asdefinedinthetaxlaw).

RAP ReasonablyArguablePosition.Apositionisdefinedasbeingreasonablyarguable(insection284-15oftheTAA)ifitwouldbeconcludedinthecircumstances,havingregardtorelevantauthorities,thatwhatisarguedforisaboutaslikelytobecorrectasincorrect,orismorelikelytobecorrectthanincorrect.Innumericterms,aRAPOpinioncanbeobtainedwherethereisapercentagelikelihoodapproaching50%thatthetaxtreatmentoftheitemwillbeupheldifchallenged.

ShouldOpinion

AShouldOpinionisanOpiniongivenbyanadvisorwhichsupportsthemeritsoftaxtreatmentofanitemtotheextentthatalthoughnotentirelyfreefromdoubt,thetaxpayer'spositionshouldprevail.Innumericterms,aShouldOpinioncanbeobtainedwherethereisatleastan80%likelihoodthatthetaxtreatmentoftheitemwillbeupheldifchallenged.

Oncetherequisitelevelofopinionisobtained,itmustbesignedoffbytheindividualwiththerelevantlevelofauthority.However,notaxpositionistobetakenunlessitismorethanaRAP.Themaintenanceofthispositionisconsideredtobeasignificantprotectionagainsttaxshortfallpenalties.

1.9 ExternalAdvisorsWhoCanEngageExternalAdvisorsTheFinanceDirectorwilldetermineifinternalorexternaladviceisrequiredbasedontheLevelofOpinionrequirementssetoutabove.Ifexternaladviceisrecommended,theFinanceDirectorwillmanagetheprocessofbriefingadvisorsandobtainingtheadvice.ThechoiceofexternaltaxadvisorwillgenerallybeatthediscretionoftheFinanceDirector.WhenToEngageExternalAdvisorsExternaladvisorsaretobeengagedtopreparetheCompany’staxprovisioncalculationsandforthepreparationandlodgementoftheCompany’sincometaxreturn.The Company’s Finance Function will generally undertake its other ordinary tax complianceobligations(includingFringeBenefitsTaxreturnsandBusinessActivityStatements)andonlyseekexternaladviceasrequired(asdirectedbytheFinanceDirector).Asnotedabove,internaltaxfunctionsaretobereviewedbyexternaladvisorseverytwoyears.Typicaltransactionsoreventswhichwouldrequireexternaladviceinclude:

§ AnynewandsignificantarrangementthatinvolvestheCompanyandthirdparties;§ Undertakingofoffshoreinvestmentsortransactions§ Debtorequityrestructures§ Materialtransactions,suchasbusinessrestructures§ Tax controversy elements apply/a Revenue Authority is scrutinising a matter (e.g.

notificationofanATORevieworAudit)

§ Thetaxtreatmentadoptedisnotsupportedbygeneralguidance/adviceavailablefrom

theRevenueAuthority§ TheFinanceFunctiondoesnothavetheresourcesorcapabilitiestoadequatelydealwith

theissue§ Significanttransactionsorevents

Ifmattersareparticularlycomplex,sensitiveormaterialitmaybeappropriatetoobtainasecondopinionoraRulingfromaRevenueAuthority.SignificantTransactionsAn event (such as a transaction, issue or risk) will be significant if it markedly affects theCompany’scompliance,operational,financialorstrategicoutcomesorprocesses.Forexample,aneventmaybesignificantifanyofthefollowingapply:

§ Public knowledge of a dispute of the position taken by the Companywould cause anegativeimpactonthereputationoftheCompanyand/orthepositiontakenislikelytoleadtolitigation

§ ItresultsinataxoutcomethatvariesfromindustrypatternsorpastperformanceoftheCompany

§ ItinvolvesthirdpartiestotheCompany§ Itresultsinaconsiderablevariationbetweeneconomicandtaxperformance§ ItisamatterwhichisspecificallyreportabletoaRevenueAuthority(suchasaReportable

TaxPosition(“RTP”)pursuanttotheATO’sproposedRTPregime)§ It is amatter being scrutinised by a Revenue Authority (for example, under an ATO

RevieworAudit)

1.10 ReportingObligationsandTimingThe FinanceDirectorwill report on general tax items to theAudit and Risk Committee on abiannualbasis.Thereportingwillhighlightthecompliance,operational,financialandstrategictaxattributesfortheCompany.ReportingbytheFinanceDirectortotheBoardwillbeonan‘exceptions’(i.e.morefrequentlythanbiannual)basis:i. ifanidentifiedriskisratedashigh;orii. atransactionisregardedassignificant,To facilitate the reporting to the Audit and Risk Committee the reporting obligations of thebusinessunits,includingmatterstobereported,reportingchannelsandfrequency,isprovidedbelow:

§ Bi-annualTaxStatusReports(containingstatusupdatesfortheCompany)escalatedtotheFinanceDirector(and,wherenecessary,theBoardorAuditandRiskCommittee);and

§ AttendancebytheFinanceDirectorattheBoard(orAuditandRiskCommittee)meetingsasrequired.

BusinessUnitssupportthistaxriskmanagementcommunicationapproachbyprovidingwrittenconfirmationthatTaxpoliciesorotherrelevantdirectiveshavebeenfollowedtotheCFOsandtheFinanceDirectorbywayoftheTaxRepresentations&AssuranceReportatAppendixDonan

annualbasis.TheFinanceDirectorwillalsohaveregular1on1’swiththeCFOsinrespectoftaxaffairsforeachbusinessline.

1.11 ManagementofKeyTaxProcesses

ItisincumbentontheFinanceDirectorTaxtodesign,documentandimplementstronginternalcontrols aswell as policy and proceduremanuals. This includes specific tax policies detailinglegislation,complianceandadministration.TheCompany’sAssuranceFunctionwillconductperiodictaxriskassessmentsassociatedwiththeoperationalandcomplianceaspectsoftheCompany’staxobligations.TheFinanceDirectorisaccountableforthetaxriskassessmentsandensuringtheappropriatecontrolsareinplacetomanagetheidentifiedrisks.TheFinanceDirectorisresponsibleforthedevelopmentandmaintenanceofinternalcontrolsaswellaspolicyandproceduremanualsthatconsidermajortransactionsandstrategies,takingintoaccountanychangesintaxlaw.

1.12 DocumentRetentionandManagementGooddocumentmanagementandrecordretentionisfundamentaltotaxriskmanagementasitwillassisttheCompanyto:

§ meetcomplianceandotherlegalobligationsapplicabletotheCompany§ enablereview(internalorRevenueAuthority)ofprocessesanddecisions§ retainthecorporatememoryanditsnarrativehistory§ respond in a timely and efficient manner to information requests from Revenue

Authorities§ demonstratethecostandimpactofyourbusiness§ helpresearchanddevelopmentactivities

Accent is required to keep all records that evidence and explain its tax position and thetransactions it enters into that are relevant for the purposes of taxation legislation. ThisrequirementoperatesinadditiontoandalongsideAccent’sdocumentationrequirementsunderCorporationsLaw.Examplesofrecordsthatmustbekeptinclude:

§ Forms,Schedules,Notices,Elections,DeterminationsandChoices§ Workpapers,EstimatesandCalculations§ CorrespondencetoandreceivedfromtheATOoranotherRevenueOffice(suchasState

orForeignRevenueOffices)§ Documentsthatexplainatransaction§ Professionaladvice§ Documentspreparedinternally/filenotes§ Agreementspreparedand/orsignedbythirdparties§ Costdatainrelationtocapitalassets§ Correspondenceandemailsoutliningtheabove

Allrecordsmustbestoredinelectronicformatontheappropriateshareddrive.Further,acopyofallrecordsthatmayberelevanttoincometaxmattersmustalsobestoredonEYKeySpace.

RecordsmustbekeptforaminimumoffiveyearsandcanonlybedestroyedatalatertimeiftheFinanceDirector or CFO is satisfied that those records are unlikely to be required in provingAccent’spositioninataxdispute.Before any document is to be made available to the Revenue Authority in response toaudits/investigations/examinations,thosedocumentsmustfirstbereviewedbytheCompany’sinternallegalcounseloranExternalAdvisorforpotentialclaimsforLegalProfessionalPrivilegeor other evidentiary protections (legal or administrative) which may protect them frommandatorydisclosure.

1.13 TrainingandAwarenessTheFinanceDirectorisresponsibleforarrangingtrainingforkeypeopleintheFinanceFunctiontoenablethemtoownandmanagetaxrisk.

1.14 ReviewCycleItisrecommendedthatthisPolicybereviewedannuallybytheFinanceDirectorwhowillproposeany changes, if appropriate to the Board. This Policy will be revised from time to time andrevisionswillbecirculatedpromptly.

1.15 Non-compliance

TheoversightoftheCompany’sadherencetothisPolicyistheresponsibilityof[FinanceDirector.TheFinanceDirectorwill reportmaterialnon-compliancewith thepolicy,byexceptionto theAuditandRiskCommittee.

APPENDIXATaxStatusReportTheAthlete’sFoot

[PROTECTEDBYTHEADMINISTRATIVECONCESSIONOFFEREDUNDERTHEATOPRACTICESTATEMENTLAWADMINISTRATION2004/14]1

1. Period[Insertthedate]2. Overview[Insertsummaryofissuesandwhetheritemshavebeenadded/resolvedsincepriorperiod]3. Significanttaxissues,risksandevents[Insertthesignificantissues/risks(includingrating)intothecategorieslisted(examplesaregivenbelow)]ComplianceExamples:• Contentioustaxpositions• Aninstanceofaninabilitytocomplywith

regulatoryandstatutoryrequirements• LatelodgementofanIncomeTaxReturn• ATOscrutiny(anAuditorReviewissued)• AnATOpenaltyorinterestamount

OperationalExamples:• R&Dprojects• Internalauditprogram–Reviewof

operationofTaxRiskManagementPolicy• Implementationofnewaccounting

software• Trainingrequiredtoaccommodatechanges

inthelaw• Staffturnover• Majorprojectsre:financefunction

FinancialExamples:• Frankingcreditupdate• Anadverseimpactoncashasaresultoftax

(e.g.anactualrefundonanIncomeTaxReturnissignificantlylessthanexpected)

• Asignificantissueisraisedbyexternalauditonakeytaxaccount

• TaxeffectaccountingoutcomesExplanationofdifferencesbetweentaxandaccountingoutcomesandeffectivetaxrate

StrategicExamples:• Transferpricingupdates• Taxtransparencyupdates• Impactfromchangesinthelaw• Instancesofbadpublicity• Instancesofreputationaldamage• Major/complextransactions

1 Corporate board documents on tax compliance risks are protected by the administrative concession offered under the ATOs Practice Statement Law Administration 2004/14 “Access to ‘corporate board documents on tax compliance risk’”

APPENDIXBTaxStatusReportAccent


1. Period[Insertthedate]2. Overview[Insertsummaryofissuesandwhetheritemshavebeenadded/resolvedsincepriorperiod]3. Significanttaxissues,risksandevents[Insertthesignificantissues/risks(includingrating)intothecategorieslisted(examplesaregivenbelow)]ComplianceExamples:• Contentioustaxpositions• Aninstanceofaninabilitytocomplywith









• Taxeffectaccountingoutcomes• Explanationofdifferencesbetweentaxand

accountingoutcomesandeffectivetaxrate



APPENDIXCTaxStatusReportHype


1. Period[Insertthedate]2. Overview[Insertsummaryofissuesandwhetheritemshavebeenadded/resolvedsincepriorperiod]3. Significanttaxissues,risks(includingrating)andevents[Insertthesignificantissues/risksintothecategorieslisted(examplesaregivenbelow)]ComplianceExamples:• Contentioustaxpositions• Aninstanceofaninabilitytocomplywith









• Taxeffectaccountingoutcomes• Explanationofdifferencesbetweentaxand

accountingoutcomesandeffectivetaxrate



APPENDIXDTaxRepresentations&AssurancesReport

Question Responsibility Response(Yes/No/

N/A)

Comment

FinancialStatementsHavealltaxlodgementsandremittancesduringtheperiod,includingincometaxpayrollandindirecttaxes,beenkeptup-to-date?

Havedifferencesbetweenpriorperiodtaxprovisionsandtaxreturnslodgedbeenanalysedandadjustmentsmadetotheperiod-endtaxprovisionwhereappropriate?

HavealldisputesordisagreementsarisingduringtheperiodwiththeATObeenreportedtotheBoard?

DoestheCompanyholdsufficientfrankingcreditstoallowtheCompanytocontinuetopayfrankeddividendsinaccordancewithpastpractice?

Haveallmajortaxitemsraisedbytheexternalauditorsbeenaddressedandsatisfactorilyresolved?

RiskManagementandInternalControlsHavetheCompany’scontrolsandtaxcompliancesystemsbeenreviewedbyanexternaladvisorintheprevious24monthstoconfirmtheyareworkingappropriatelyandtheCompanyistaxcompliantatalltimes?

Havethefollowingprocessesbeenperformedduringtheperiodwhereapplicable:

- Validationofinputstotaxsubmission(i.e.accountsresults,changestotheassetregister)

- MonthlyreconciliationforGST(BAStobalancesheet)

Question Responsibility Response

(Yes/No/N/A)

Comment

HastheCompanyhadanyinstancesofsignificantcontrolfailingsorweaknessesatanytimeduringtheperiodthathave,orcouldhavehad,amaterialimpactontheperformanceorpositionoftheCompany?

HavetheCompany’staxpoliciesandprocedureshavebeenupdatedtotakeintoaccountallrelevantchangesintaxlawandadministrationinthepast12months?

DoestheRiskRegisterdocumentallsignificanttaxandbusiness(ifrelevant)risksanddisputesasdefinedbytheRiskRatingCriteria,thekeymitigationstoaddressthoserisks,andanysignificantcontrolweaknessesinrelationtoeachrisk?

DoestheTaxStatusReportdocumentallsignificanttransactionsandeventsandgeneraltaxreportingitemsasdefinedintheBoardPolicy?

Haveallrelevantpersonnelinyourfunctionattendedrequisitetaxgovernancetrainingwhenofferedduringtheperiod?

Iconfirmthattheanswersandinformationprovidedinresponsetothisquestionnairearecorrectandhavebeengivenonthebasisofmyknowledgeaftermakingextensiveenquires,whereappropriate,ofrelevantcompanyemployees.

ChiefFinancialOfficer

Signed:…………………………………............

Name:............................................