Tax Telegraph, July 2013
New bill introduced containing significant developments for large corporates:
On 29 May 2013, Tax Laws Amendment (2013 Measures No. 2) Bill 2013 was introduced into Parliament and includes the following key measures:
- Improving the transparency of Australia’s corporate tax system: This schedule contains three measures. The first measure requires the Commissioner to make publicly available specific information relating to the tax affairs of all corporate tax entities that have:
- A reported total income of $100 million or more (i.e. Name, ABN, total income, taxable income and tax payable)
- A liability to pay an amount of minerals resource rent tax (MRRT) or petroleum resource rent tax (PRRT) in a future MRRT year or year of tax (i.e. Name, ABN, amount of MRRT and/or PRRT payable).
The second and third measures propose to:
- Allow the publication of periodic aggregate tax information (such as tax imposed under a particular Act) regardless of whether the publication, in conjunction with publicly available information, may be reasonably capable of being attributed to a particular taxpayer (other than a natural person)
- Allow enhanced information sharing between Government agencies in relation to decisions under the Foreign Acquisitions and Takeovers Act 1975 and Australia’s Foreign Investment Policy.
- Monthly PAYG instalments: This measure amends the pay-as-you-go (PAYG) instalment system and requires certain entities to pay PAYG instalments monthly rather than quarterly or annually if they exceed the following Base Assessment Instalment Income (BAII) thresholds:
- Corporate tax entities with a BAII of more than $1 billion (from 1 January 2014)
- Corporate tax entities with a BAII of $100 million or more (from 1 January 2015)
- Corporate tax entities with a BAII of $20 million or more (from 1 January 2016)
- All other entities with a BAII of $1 billion or more (from 1 January 2016)
- All other entities with a BAII of $20 million or more (from 1 January 2017).
An entity’s BAII is, broadly, the entities ordinary income less exempt and non-assessable non-exempt income as calculated in the latest income tax return.
An entity with a threshold amount of less than $100 million, who is a quarterly or annual goods and services tax (GST) reporter, and is not a head company of a consolidated group or a provisional head company of a MEC group, will not be required to pay monthly PAYG instalments.
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