• Service: Tax, Global Indirect Tax, Global Mobility Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 12/17/2013

Australia - Exemption from thin-cap rules; GST opportunities 

December 17:  The KPMG member firm in Australia prepared reports on the following developments (read the 2013 reports by clicking on the hyperlinks provided below):
  • Exemption from thin capitalisation for “insolvency remote” entities - Provisions of Australian tax law provide an exemption from the application of the thin capitalisation provisions if the entity meets certain conditions, including being established for the purpose of managing some or all of the economic risk associated with assets, liabilities or investments (whether the entity assumes the risk from another entity or creates the risk itself).

    Read a December 2013 report

  • GST - The business case for Data Analytics - Empirical evidence suggests that a certain percent of all data entered is incorrect, due to incorrect system configuration and human error. If applied to the “GST throughput” (i.e., gross GST payable and input tax credits claimable), the monetary risks and rewards may be significant, especially when general interest charges (11% per annum) and penalties (25% to 75%) are factored into the equation. Accordingly, businesses need to conduct regular data analytics projects to supplement GST governance programs.

    Read a December 2013 report

  • The death of death duty - With the passing of the Succession Duties Repeal Act 2013 (SA) in South Australia last month, death duty in Australia has finally been repealed.

    Read a December 2013 report

  • Indirect Tax Compliance – at what cost? - A survey conducted last year indicated that in Australia, the goods and services tax (GST) compliance costs of small businesses constituted 58% of their total internal tax compliance costs. To stay competitive, businesses are now being challenged to develop practical, effective and efficient frameworks to not only manage GST compliance, but to simultaneously create value for the broader business.

    Read a December 2013 report

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