Australia: Prepare now for country-by-country reporting

Australia: Prepare now for country-by-country reporting

Australian headquartered organisations with a December year-end are subject to new country-by-country reporting rules. Therefore, these taxpayers need to consider what steps to take now, given that the reporting period has commenced. The first report will not need to be filed until 31 December 2017.

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In considering how to prepare for the country-by-country reporting, entities need to recognise that there may be flexibility in how the report is prepared and with regard to the underlying information collection and the report preparation principles. 

It will be important to capture the correct information contemporaneously. Some key decisions that may need to be made as early as possible include:

  • What will be considered to be a “tax”?
  • How are withholding taxes going to be accurately identified and allocated to the right country?
  • How are accurate employee numbers going to be collated, and how will business travelers be treated?
  • Is the information going to be based on management accounts or regulatory financial statements?
  • Is the information going to be based on group or local Generally Accepted Accounting Principles (GAAP)?

KPMG observation

While flexibility is available in certain areas, it would be prudent to apply policies consistently for all countries and also in future years.

 

 

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