New Zealand’s Inland Revenue released updated guidance outlining its expectations for tax control frameworks (TCFs) as part of increased reviews of tax governance, systems, and processes on 7 April 2025.
The guidance identifies six key components of a TCF: tax strategy, comprehensive documentation, responsibility, governance, testing, and assurance.
Documentation should cover the policies and processes for each tax type, with checklists, sign-offs, and controls for in-house and agent-prepared returns. Roles and responsibilities must be clearly defined, with staff maintaining relevant skills and receiving regular training.
Governance expectations include up-to-date manuals, flowcharts, process maps, and documentation and review procedures for significant transactions. Inland Revenue also requires regular testing of tax processes and systems, particularly after organisational or system changes.
The TCF must provide Inland Revenue with assurance that tax risks are identified, recorded, and addressed. Enterprises are expected to regularly review and update their frameworks to reflect changes in business operations and legislation.
