• Service: Tax, Global Indirect Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 3/14/2014

Australia - Petroleum resource tax, payment-card reporting, GST overpayment claims 

March 14:  The KPMG member firm in Australia prepared reports on the following developments (read the March 2014 reports by clicking on the hyperlinks provided below):
  • Petroleum resource rent tax - The petroleum resource rent tax (PRRT)—a 40% tax on the “upstream activities” of a petroleum project—can have a significant impact on net present value (NPV). Recent legislative amendments, Australian Taxation Office (ATO) guidance and case law are reshaping PRRT.

    Read a March 2014 report.

  • Comparing Australia’s double tax agreements - Much of the discussion regarding the debate on base erosion and profit shifting (BEPS) is in respect of the efficacy of principles underpinning existing double tax agreements, and the applicability of many of the concepts that are currently incorporated in the treaties that are part of Australia’s income tax treaty network.

    Read a March 2014 report.

  • New third-party data reporting regime - Fund managers, brokers trading shares, merchant sale-payment facility providers and individuals buying real estate transactions could be burdened by considerably more administration. A new reporting system, due to apply by 1 July 2014, could also mean significant changes for payment card providers—with a very tight timetable for implementation.

    Read a March 2014 report.

  • GST optimisation - Goods and services (GST) optimisation relates to the management of GST throughput and is relevant to all businesses (including taxable businesses) because of the volume of cash flow involved and the recurrent impact it has on businesses. Improvement of GST processes and controls not only reduces compliance costs but creates cash flow benefits such as accelerating in flow of input tax credits through avoiding delays in processing tax invoices for purchases. Timing benefits can also be achieved by deferring payment of GST on supplier invoices and accelerating receipt of GST on sales invoices.

    Read a March 2014 report.

  • When is a partnership "carrying on an enterprise" - The Administrative Appeals Tribunal found that for the purposes of the Goods and Services Tax Act, the determination of “carrying on an enterprise” includes activities undertaken in the course of commencement of the enterprise as well as a reasonable expectation of profit.

    Read a March 2014 report.

  • Proposed changes to GST Act - The Australian government re-release draft legislation, that if enacted would introduce a new Division 142 to the GST Act—and that would significantly restrict the supplier’s already limited ability to obtain a refund of overpaid GST. The proposed law would require supplies to disprove that the GST has not been passed on, even when no invoice has been issued to the customer. This restriction on a GST refund would remain unless and until the supplier reimburses the customer for the excess GST.

    Read a March 2014 report.

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