Treasury Laws Amendment (2020 Measures No. 1) Act 2020 (49 of 2020)

Schedule 1   Significant global entities

Income Tax Assessment Act 1997

5   At the end of Subdivision 815-E

Add:

815-370 Meaning of country by country reporting entity (or CBC reporting entity )

An entity is a country by country reporting entity (or CBC reporting entity ) for a period if:

(a) the entity is a *CBC reporting parent for the period; or

(b) the entity is a *member of a *CBC reporting group during the period and another member of that group is a CBC reporting parent for the period.

815-375 Meaning of country by country reporting parent (or CBC reporting parent )

(1) An entity is a country by country reporting parent (or CBC reporting parent ) for a period if:

(a) the entity is not an individual; and

(b) if the entity is a *member of a *CBC reporting group at the end of the period - it is an entity that, according to:

(i) *accounting principles; or

(ii) if accounting principles do not apply in relation to the entity - commercially accepted principles related to accounting;

is not controlled by any other member of the CBC reporting group at the end of the period; and

(c) the entity's *annual global income for the period is $1 billion or more.

(2) For the purposes of paragraph (1)(c), in working out the entity's *annual global income for the period, treat the reference in paragraph 960-565(1)(aa) to *notional listed company group as instead being a reference to *CBC reporting group.

815-380 Meaning of country by country reporting group (or CBC reporting group )

(1) A group of entities is a country by country reporting group (or CBC reporting group ) if:

(a) none of the entities is an individual; and

(b) any of the following requirements are satisfied:

(i) the group is consolidated for accounting purposes as a single group;

(ii) the group is a *notional listed company group.

(2) Each entity in the group is a member of the *CBC reporting group.

(3) Subsection (5) applies if:

(a) all the members of a group that is consolidated for accounting purposes as a single group (the smaller group ) are members of:

(i) another such group; or

(ii) a *notional listed company group; and

(b) at least one entity is a member of the group mentioned in subparagraph (a)(i) or (ii) but is not a member of the smaller group.

(4) Subsection (5) also applies if:

(a) all the *members of a notional listed company group (the smaller group ) are members of:

(i) another such group; or

(ii) a group that is consolidated for accounting purposes as a single group; and

(b) at least one entity is a member of the group mentioned in subparagraph (a)(i) or (ii) but is not a member of the smaller group.

(5) For the purposes of subsection (1), treat the smaller group as not being any of the following:

(a) a group that is consolidated for accounting purposes as a single group;

(b) a *notional listed company group.

(6) For the purposes of this section, assume that paragraph 960-575(4)(a) were disregarded:

(a) in determining whether a *notional listed company group exists; and

(b) in identifying the *members of a notional listed company group.

Note: The effect of that assumption is that certain exceptions in accounting or other principles to requirements to consolidate for accounting purposes are taken into account in working out the membership of the country by country reporting group. Where such exceptions apply, a country by country reporting group may have fewer members than the equivalent notional listed company group.