Extending the definition of a Significant Global Entity (SGE) – November 2019, close on 11 December 2019

The Government announced in the 2018-19 Budget that it was extending the definition of a Significant Global Entity (SGE) beyond groups headed by listed companies and by private companies required to prepare general purpose financial statements.

SGE is a concept to define, generally speaking, a group of entities, interrelated by a control relationship that could enable non-arm’s length dealings and therefore be of special interest to tax authorities.

Originally devised to determine application of OECD Country-by-Country reporting requirements, the SGE definition is now also used to determine application of the Multinational Anti-Avoidance Law, the Diverted Profits Tax and penalties applying to false or misleading statements, late lodgement or tax schemes. Also SGEs are required to prepare general purpose financial statements where a non-SGE may only be required to prepare special purpose financial statements.

By extending the definition to include members of large business groups headed by private companies, trusts, partnerships, investment entities and individuals, the draft legislation will ensure the multinational tax avoidance rules apply to all relevant entities, and that Australia can meet its OECD Country-by-Country reporting commitments.

Consultation on an earlier draft of this measure took place between July and August 2018. Subsequently, some technical changes have been made to the draft legislation and it is again being released for consultation.

Exposure Draft

Explanatory Materials

Further information here.

Consultation on the economic infrastructure staples tax concession draft guidance note, close on 17 January 2020

The Government has released for public consultation the draft guidance note for potential applicants regarding the processes for applications to the Treasurer for the economic infrastructure staples tax concession (the concession). The concession allows the Treasurer to approve applications for a 15 year concessional withholding tax rate for economic infrastructure projects in certain circumstances.

The draft guidance note aims to provide guidance to potential applicants on how to apply to the Treasurer for the concession by outlining:

  • the criteria to access the concession;
  • the process (which requires submission of a business case to Infrastructure Australia); and
  • the information that applicants will need to provide.

The Government invites feedback from interested parties on the draft guidance note, in particular whether it provides sufficient information to enable interested parties to make an application.

Draft Guidance Note

Further information here.

Comments are closed.