Government outlines tax transparency reform
Large corporate entities would be required to disclose their total payable tax, under proposals floated by the Federal Government.
Federal Assistant Treasurer, David Bradbury, released a discussion paper outlining the Government’s planned changes to the nation’s corporate tax system.
"Increasing the transparency of tax payable will enable the public to better understand the corporate tax system and engage in policy debates, as well as discourage aggressive tax minimisation practices by large corporate entities," said Mr Bradbury.
The discussion paper sets out the details of three specific proposals:
- transparency of tax payable by large and multinational businesses with total income of $100 million or more per year, or entities with MRRT or PRRT liabilities;
- publishing aggregate collections for each Commonwealth tax; and
- enhanced information sharing between Government agencies.
- The information, which is already provided to the Australian Taxation Office, would be made publicly available by the Commissioner of Taxation.
"The Government has developed these proposals following consultation with the Specialist Reference Group on Ways to Address Tax Minimisation of Multinational Enterprises and discussions with key corporate regulators," said Mr Bradbury.
Mr Bradbury said that the planned changes form part of the Government’s broader push to improve transparency of the nation’s tax system and to crack down on profit shifting.
"The Government is continuing to progress its reforms to our tax laws to prevent profit shifting, close loopholes and protect the integrity of our tax base," said Mr Bradbury.
"If we do not move to close these loopholes, Australian families and small businesses will be forced to shoulder more of the tax burden in the future."
Consultation on the discussion paper will close on 24 April 2013. Stakeholders should consider both policy and legislative design issues when preparing their submissions.
A copy of the discussion paper may be found on the Treasury website.