• Service: Tax, Global Indirect Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 3/20/2014

Australia - BEPS and indirect tax; depreciation for consolidated groups 

March 20:  The KPMG member firm in Australia prepared reports on the following developments (read the March 2014 reports by clicking on the hyperlinks provided below):
  • BEPS and indirect tax - The intersection of the base erosion and profit shifting (BEPS) and the goods and services tax (GST) / value added tax (VAT) could lead to potential double indirect taxation.

    Read a March 2014 report.

  • Depreciation changes—from 150% to 200% - An item included in the Coalition’s recent tax announcement relates to the use of the 200% diminishing value depreciation rate by tax consolidated groups, who have either formed or had an entity join after 10 May 2006. There may be an opportunity to amend prior year returns to claim the higher 200% diminishing value rate. The usual four-year statutory time limit may also potentially be extended.

    Read a March 2014 report.

  • Jockeying for a slice of the May Budget - A developing trend in the lead-up to the May Budget has industries independently positioning for a “first mover advantage”—i.e., unrelated sectors actively approaching the government to demonstrate why their industry is economically worthy of a tailored tax incentive independent of the White Paper.

    Read a March 2014 report.

  • ATO indicates thinking on employee reward trusts - The Australian Taxation Office (ATO) recently released draft Taxation Ruling 2014/D1 concerning employee remuneration trusts. The draft ruling addresses issues including the deductibility of contributions made to the trust, withholding implications arising for the company and trustee, fringe benefits tax implications, and the treatment of benefits received by an employee. The ruling also addresses issues previously highlighted by the ATO over the past five years.

    Read a March 2014 report.

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