• Service: Tax, Global Indirect Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 4/3/2014

Australia - R&D and exploration incentives; taxation of financial arrangements 

April 3: The KPMG member firm in Australia prepared reports on the following developments (read the March and April 2014 reports by clicking on the hyperlinks provided below):
  • R&D tax incentive developments - March 2014 saw numerous developments relating to the research and development (R&D) tax incentive in Australia with new cases and guidance published. The potential for further legislative change is still on the horizon.

    Read an April 2014 report.

  • Exploration development incentive – The coalition government released its discussion paper in support of the introduction of an exploration development incentive (EDI) that would “incentivize” greenfields mineral exploration in Australia by providing investors in “junior explorers” with exploration tax credits when a company renounces its tax losses arising from eligible exploration expenditure (based in part on the Canadian flow through share model, except with respect to the timing of the tax benefit for investors).

    Read an April 2014 report.

  • Taxation of financial arrangements (TOFA) - The Australian Taxation Office recently issued a number of TOFA questionnaires to taxpayers in order to assess if the TOFA rules are being considered appropriately. The questions range from setting out the steps taken by a taxpayer to implement the TOFA rules, to details of specific financial arrangements subsequently entered into by the taxpayer.

    Read an April 2014 report.

  • Key issues to consider for FBT returns - With fringe benefits tax (FBT) return deadlines approaching and a new FBT year about to start, the top five issues to consider include: (1) tricky transitional provisions; (2) classifying a mobile workforce; (3) using GST inclusive values; (4) tracking process improvements; and (5) the FBT rate increase from 46.5% to 47% effective 1 April 2014.

    Read a March 2014 report.

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