The Australian Taxation Office (ATO) on September 8 published the results of a consultation on rules implementing a new law that requires the ATO to publicly disclose tax information of companies that have income of $100 million or more and those that pay minerals resource rent tax (MRRT) or petroleum resource rent tax (PRRT).
About 2,300 entities that will be subject to the new reporting, which begins late 2015. Information published will include the company’s total income, taxable income, income tax payable, and the amount of MMRT or PRRT payable.
In addition to detailing written comments submitted in response to the March 13 consultation, the ATO described agreements reached at a workshop held April 30, attended by members of the ATO and industry.
The document states that it was was agreed at the workshop that ATO reports should be final as of the reporting cut-off date, with no updates made to reflect later amendments.
Also, it was agreed that companies would be given the opportunity to confirm the tax information before it is released publicly. Four weeks notice was considered sufficient.
Agreements were also reached regarding information that would accompany the public release, including the addition of a ‘disclaimer’ explaining that the effective tax rate for a taxpayer cannot be calculated from the reported data.
The guidance will also explain the terms ‘total income’, ‘taxable income,’ and ‘income tax payable.’ Also, readers will be referred to company websites to obtain more information.
See:
Be the first to comment