Labor Bill proposes lowering the turnover threshold, from $200,000 to $100,000 for public reporting of private company tax information (like public companies have their tax information reported by the Commissioner).

On Monday 14.8.17, Senator Gallagher (ALP ACT, Manager of Opposition business in the Senate) introduced the Taxation Administration Amendment (Corporate Tax Entity Information) Bill 2017 into the Senate. This Private Member’s Bill proposes to amend s 3C of the TAA to align the public reporting threshold for private corporate entities with that of public corporate entities by lowering the threshold from $200 million to $100 million.

Section 3C details the type of income and tax information the Commissioner of Taxation is required to make publicly available annually for corporate entities. The Bill would repeal the current wording of s 3C(1), and substitute it with language that ensures corporate tax entities (including private companies) with total income equal to or exceeding $100 million are subject to the public reporting requirements of s 3C.

Section 3C was amended in October 2015 to remove private companies from public reporting – by the Tax and Superannuation Laws Amendment (Better Targeting the Income Tax Transparency Laws) Act 2015. In December 2015, s 3C was amended again to include private companies (as part of the debate on the Tax Laws Amendment (Combating Multinational Tax Avoidance) Bill 2015), but the threshold for reporting was set at $200 million.

[APH website: Bill; EM; FJM; LTN 154, 15/8/17; TT August]

Section 3C(1) of the TAA – those whose tax information must be published

SECTION 3C   REPORTING OF INFORMATION ABOUT CORPORATE TAX ENTITY WITH REPORTED TOTAL INCOME OF $100 MILLION OR MORE

3C(1) This section applies to a corporate tax entity for an income year if, according to information reported to the Commissioner in the entity’s income tax return for the income year:

  (a) the entity has total income equal to or exceeding $100 million for the income year and, at the end of the income year:

(i) the entity is not an Australian resident that is a private company for the income year; or

(ii) the entity is a member of a wholly-owned group that has a foreign resident ultimate holding company; or

(iii) the percentage of foreign shareholding in the entity is greater than 50%; or

(b) the entity has total income equal to or exceeding $200 million for the income year and, at the end of the income year, the entity is an Australian resident that is a private company for the income year.

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