The Australian Taxation Office (ATO ) has today launched a consultation on rules to implement a new law that will significantly increase public disclosures required by many large businesses operating in Australia, particularly privately held companies.
Tax Laws Amendment (Combating Multinational Tax Avoidance) Act 2015, enacted last December, requires “significant global entities” to file a general purpose financial statement with the Commissioner of Taxation along with their tax return if they do not currently file with the Australian Securities and Investments Commission (ASIC). As the Commissioner, in turn, is required to provide the ASIC with the statement, this means the document will become publicly available.
The new law, applicable to income years commencing on or after July 1, 2016, applies to entities that are part of a group with a global income of AUD$1 billion or more.
The new rules are in addition to the new country-by-country reporting requirements imposed on MNEs.
In its consultation, the ATO asks stakeholders a series of questions to assist in preparation of guidance on the topic, hoping to clarify aspects of the new law and reduce complexity.
Many questions concern situations where taxpayers would be permitted to use ‘commercially accepted principles relating to accounting,’ as opposed to Australian accounting standards, when preparing the general purpose financial statement.
Comments are requested by September 30.
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