Call Us
Tax compliance is a core aspect of corporate governance. Effective auditing practices can help safeguard businesses from regulatory penalties and reputational risk.
Tax compliance is a core aspect of corporate governance. Effective auditing practices can help safeguard businesses from regulatory penalties and reputational risk.
Industry Perspective:
At recent industry and governance forums, professionals have emphasized that audit committees and external auditors must prioritize tax compliance as a key governance function. The Guardian Nigeria
Why Tax Compliance Matters:
Ensures alignment with regulatory requirements (e.g., Company Income Tax Act, VAT rules, PAYE reporting).
Helps boards and executives maintain accountability and transparency.
Minimizes exposure to fines and disputes with tax authorities.
How Auditors Add Value:
Risk-based assessments of tax provisions and internal controls.
Recommendations for strengthening tax reporting frameworks.
Collaboration with internal finance teams to educate management on governance best practices.
Actionable Tips for Boards & Finance Leaders:
Establish clear tax policies and reporting lines.
Integrate tax risk oversight into audit committee charters.
Leverage technology and data analytics to monitor tax compliance efficiently.
Conclusion:
Tax compliance isn’t just a legal obligation — it’s a governance imperative. Auditors play a crucial role in helping organizations embed tax risk oversight into broader governance and performance frameworks.
