The ATO says it has completed a pilot trial with participating businesses to test and refine a methodology to determine Effective Taxes Borne (ETB) and its use in analysing the Australian and global tax performance of multinationals. According to the ATO, its pilot findings show ETB as an effective risk and compliance tool to help it identify an economic group’s worldwide profit from Australian-linked business activities, and the Australian and offshore tax paid on that profit. The ATO says it will use ETB as part of its compliance activity to assess the tax performance of targeted entities in certain circumstances, including where the business is not transparent in its dealings with the ATO or have had limited interactions with the ATO.

[ATO starting trial] [ATO finished trial] [LTN 25, 9/2/16]