Why Tax Governance Matters: Unlock Opportunities with the Tax Governance Framework (TGF)

In today’s complex regulatory environment, businesses face increasing pressure to maintain robust tax compliance. It’s no longer just about avoiding penalties—it’s about building trust with stakeholders, safeguarding your reputation, and unlocking opportunities for growth. The Tax Governance Framework (“TGF”), introduced by the Inland Revenue Authority of Singapore (“IRAS”), provides businesses with a structured approach to achieving these goals.

 

What Is the TGF?

The TGF is a voluntary compliance initiative aimed at helping companies establish and maintain high standards of tax governance. By adopting the framework, businesses align with a set of broad principles and key practices that elevate tax risk management and governance to the Board of Directors level.

 

What Is the TGF?

The TGF is built on three essential pillars:

 

Why Adopt the TGF?

1. Risk Mitigation

Companies under the TGF are better positioned to identify, manage, and mitigate tax risks. A clear tax governance policy minimizes the likelihood of errors or disputes.

 

 

 

 

 

 

 

 

2. Enhanced Relationship with IRAS

IRAS prioritizes discussions with TGF adopters, fostering mutual trust and streamlining resolutions for complex tax issues.

 

 

 

 

 

3. Collaboration with Tax Authorities

Businesses under the TGF may enjoy a one-time extended grace period of two years to voluntarily disclose errors in corporate tax, withholding tax, and GST. This can significantly reduce penalties and compliance costs.

 

 

 

 

 

 

 

 

4. Group-Level Application

Companies can apply for TGF at a group level, making it an excellent option for businesses with complex structures or subsidiaries.

 

 

Why Work With Us?

At CLA Global TS Tax Services, we simplify the TGF process so you can focus on growing your business. From reviewing tax governance policies to setting up robust risk management structures, our tailored solutions ensure your business maximizes the benefits of the TGF. With our expertise, you’ll save time, minimize risks, and enhance compliance—all while building trust with stakeholders and tax authorities.

 

Take the First Step Today

Don’t wait until tax filing period to address compliance risks. Our team is ready to guide your business through the Tax Governance Framework with ease, ensuring peace of mind and operational resilience. Contact us to schedule a consultation and start enjoying the benefits of proactive tax risk management.

View the full article in PDF here.

 

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