Tax Laws Amendment (Combating Multinational Tax Avoidance) Act 2015 (170 of 2015)

Schedule 4   Country-by-Country reporting

Income Tax Assessment Act 1997

1   At the end of Division 815

Add:

Subdivision 815-E - Reporting obligations for significant global entities

Guide to Subdivision 815-E

815-350 What this Subdivision is about

Significant global entities must give the Commissioner statements under this Subdivision.

Note: This Subdivision enables the implementation of measures issued by the Organisation for Economic Cooperation and Development relating to transfer pricing documentation and country-by-country reporting (including Action 13 of the Action Plan on Base Erosion and Profit Shifting of the G20 and the Organisation for Economic Cooperation and Development)

Table of sections

Operative provisions

815-355 Requirement to give statements

815-360 Replacement reporting periods

815-365 Exemptions

Operative provisions

815-355 Requirement to give statements

(1) You must give to the Commissioner a statement of each of the kinds referred to in subsection (3), in the *approved form, in relation to an income year if:

(a) you were a *significant global entity during a period that includes the whole or a part of the income year that preceded that income year; and

(b) you are, during that income year, any of the following:

(i) an Australian resident;

(ii) a resident trust estate for the purposes of Division 6 of Part III of the Income Tax Assessment Act 1936;

(iii) a partnership that has at least one partner who is an Australian resident;

(iv) a foreign resident who operates an Australian permanent establishment (within the meaning of Part IVA of the Income Tax Assessment Act 1936);

(v) a non-resident trust estate (within the meaning of section 102AAB of the Income Tax Assessment Act 1936) that operates an Australian permanent establishment (within the meaning of Part IVA of that Act);

(vi) a partnership that operates an Australian permanent establishment (within the meaning of that Part); and

(c) you are not exempted under section 815-365 from giving the statement; and

(d) you are not included in a class of entities prescribed by the regulations.

Note: Under section 815-360, the Commissioner may allow you to give statements in relation to a 12 month period other than an income year.

(2) You must give the statement within 12 months after the end of the period to which it relates.

Note: Section 388-55 in Schedule 1 to the Taxation Administration Act 1953 allows the Commissioner to defer the time for giving the statement.

(3) The statements are to be of the following kinds:

(a) a statement relating to the global operations and activities, and the pricing policies relevant to transfer pricing, of:

(i) you; and

(ii) if you were a *significant global entity during the preceding income year by virtue of your membership of a group of entities - the other members of that group;

(b) a statement relating to your operations, activities, dealings and transactions;

(c) a statement relating to the allocation between countries of the income and activities of, and taxes paid by:

(i) you; and

(ii) if subparagraph (a)(ii) applies - the other members of that group.

Note: These statements correspond to the following in Annexes I, II and III to Chapter V set out in the Guidance on Transfer Pricing Documentation and Country-by-country Reporting of the Organisation for Economic Cooperation and Development and the G20:

(a) a statement under paragraph (a) corresponds to the master file (see Annexe I);

(b) a statement under paragraph (b) corresponds to the local file (see Annexe II);

(c) a statement under paragraph (c) corresponds to the country-by-country report (see Annexe III).

815-360 Replacement reporting periods

(1) The Commissioner may, by notice in writing, allow you to give all statements, or specified kinds of statements, under section 815-355 in relation to a 12 month period other than an income year.

(2) A notice under subsection (1) is not a legislative instrument.

815-365 Exemptions

Exemptions for particular entities

(1) The Commissioner may, by notice in writing, exempt an entity from:

(a) giving statements under section 815-355; or

(b) giving statements of a particular kind under that section.

(2) A notice under subsection (1) is not a legislative instrument.

General exemptions

(3) The Commissioner may, by legislative instrument, determine that section 815-355 does not apply to a specified class of entity.