ATO to Collect CbC Information from the US

The US and Australia have agreed to share detailed information of companies as countries signed a country-by-country report agreement. The Australian Labor party also proposed a private senators’ bill on Monday that would require private companies with more than $100m in turnover to release their annual tax information to the public.

CbC Reporting Agreement

Under the agreement, multinationals with an annual global income of A$1 billion or more have to report details regarding their international related party dealings, revenues, profits, and taxes paid by jurisdiction. The reports are part of the OECD/G20 plan against tax avoidance called Base Erosion and Profit Shifting (BEPS). Countries will begin sharing data from 2018.

“It will help us to build a better picture of the international tax affairs of significant global entities and assess their transfer pricing risk," the ATO spokesman told Fairfax Media.

ATO Improves Tax Collection and Guidance

ATO's spokesperson informed that ATO continues to have real-time engagement with all large taxpayers, including access to a wide range of data, including tax return and accounting records, and third-party data. "We are also increasing the support and guidance available to these companies to ensure they don't inadvertently enter into arrangements in contravention of Australia's tax laws," the ATO spokesman said.

Labor Party Wants CbC Reports to Become Public

Andrew Leigh from Labor Party has welcomed the news, saying the country’s agreement with the U.S. would boost tax transparency. However, he thought it was "disappointing” that the Coalition wants to keep these reports secret. On Monday, the Labor party proposed a private senators’ bill that would require private companies with more than $100m in turnover to release their annual tax information to the public.

Sources: The Herald, IBT, The Guardian, ATO - CbC Homepage

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