The Assistant Treasurer on Thur 28.2.2013, released a consultation paper on the Government’s proposal (announced in the MYEFO on 22 October 2012) for 3-year process to reform the timing of company tax payments by large companies. The consultation paper sets out the proposed implementation and design details for how to better align the timing of PAYG instalments for large companies with their actual economic activity. The proposed amendments are designed to better align large companies’ tax instalments with both their GST payments, and their income and trading conditions by requiring them to make PAYG instalments monthly, rather than quarterly.
- Mr Bradbury said the total tax paid by companies would not change, but from 1 January 2014, companies with turnover of id=”mce_marker”bn or more would be required to remit their PAYG company tax instalments monthly, not quarterly.
- Companies with turnover of id=”mce_marker”00m or more would have a further 1-year period to prepare for this change, with monthly payments to start on 1 January 2015.
- Companies with turnover of $20m or more would have 3 years to prepare for the change, with monthly payments to start on 1 January 2016.
- Companies with an annual turnover between $20m and id=”mce_marker”00m that are not consolidated for income tax purposes, would not be required to move to monthly PAYG instalments if they pay their GST quarterly or annually.
COMMENTS are due by 13 March 2013.
Source: Assistant Treasurer’s press release No 021, 28 February 2013
[LTN 40, 28/2/13]