• Service: Tax, Mergers & Acquisitions, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 4/11/2014

Australia - M&A-related employee payments; functional currency for tax purposes 

April 11:  The KPMG member firm in Australia prepared reports on the following developments (read the April 2014 reports by clicking on the hyperlinks provided below):
  • Returns on-time and electronic? As the end of the 2013 tax return season approaches, note that Tax Agents have been required to “lodge” 85% or more of their clients' current year tax returns by the Australian Taxation Office (ATO) Lodgement Program due-date, or by the deferred due-date if a deferral is granted, and that the ATO requires 100% of tax returns to be lodged electronically, subject to some exceptions.

    Read an April 2014 report.

  • Employee Payments in a Mergers and Acquisitions transaction? When there is an acquisition or divestment of an operating business with employees, a question arises as to what is the most appropriate way to approach the payment of bonuses as retention payments to continuing employees. For example, there can be quite different tax outcomes for the buyer and the seller depending on how the payments are arranged.

    Read an April 2014 report.

  • Mining and exploration rights - It’s been several years since the uniform capital allowances regime was introduced that included mining and exploration rights as depreciating assets. There are a number of transitional provisions that may affect the depreciable status of mining and exploration rights that, in turn, may affect the value ascribed to a project when tax depreciation deductions are denied.

    Read an April 2014 report.

  • Is your tax currency functioning? Often overlooked as a potential compliance saving, the functional currency rules can reduce the need to run a dual-ledger if financial reports are prepared in a non-AUD currency. Instead of having to make complicated and potentially error-prone conversions, a simple election may allow a taxpayer to adopt the same currency for tax as used for accounting.

    Read an April 2014 report.

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