Australian Council for Taxes and Levies published its final report on the new code of tax transparency for multinational corporations.
The report is divided into two parts. The first part requires a reconciliation of the accounting profit to the income tax, and income tax paid or payable on profits; identification of significant temporary and permanent differences; and taking into account the effective tax rates and global operations. Part two requires taxpayers to provide detailed information on the approach to tax strategy and management; a summary of the tax contribution to corporate taxes; as well as information on international transactions.
According to the report, “big business” with a turnover of more than AUD500 million. Should take both parts, while “medium business” with a turnover of at least AUD100 million but less than 500 million should adopt only the first part.
The report highlights that the new tax code in its current form refers to companies and other entities that are considered for the purposes of Australian tax.
Other organizations such as foundations, pension trusts and partnerships may voluntarily adopt a code if desired.
Finally, the report states that the Tax Code will have a minimum content, and it is expected that many companies will provide additional information.