The transparency - Are we entering a new age? paper

Published on 10 Oct 13 by VICTORIAN DIVISION, THE TAX INSTITUTE

On 4 February 2013, the Assistant Treasurer, David Bradbury, announced a new and somewhat radical initiative for highlighting the identities of multinational corporate groups who pay little tax in Australia. These controversial measures have simultaneously triggered support and opposition from different parts of ourcommunity. This paper takes a deep dive into the issues that emerged from Bradbury’s initiative, including:

• where are we at, and what is proposed?
• global response by governments to BEPS concerns about risk to tax base. 
• where did this come from and what does it mean for multinational corporations (MNCs)?
• does the legally correct amount of tax necessarily equal the morally correct amount of tax? If not, what amount should be paid?
• naming and shaming – the court of public opinion
• balancing taxpayer privacy against the public interest
• role of OECD – pronouncements to address changed MNC business environment and platforms
• G20 announcements and collaboration
• impact of increased transparency and reporting on how much tax is being paid and where
• Australian Government response – Treasury SPG working group and mid-year report
• managing this new environment – challenges for MNCs.

Author profiles

Frank Drenth

Frank has been Executive Director of the Corporate Tax Association (CTA) since 1998. Frank has had involvement on behalf of external stakeholders in the development of Australia's tax policy and law, and aspects of tax administration relevant to large companies. Frank is a member of a number of consultation groups, including the NTLG, the Large Business Advisory Group, and various specific issue consultation groups. In 2012 Frank was a member of the Business Tax Working Group, which looked at the tax treatment of losses as well as at the business tax system more broadly. More recently, he was appointed to the Stakeholder Reference Group on the Taxation of Multinational Enterprises in Australia. Frank has also contributed to the development of Australia's General Anti-Avoidance Rules through his membership of the Part IVA Roundtable. - Current at 14 August 2013

More by Frank DRENTH

• The capital v revenue distinction for labour costs paper - 04-March-2010
• Update on Critical Technical and Commercial Issues seminar paper - 18-July-2003
• International taxation: workshop questions and notes - 27-October-1999
• International Taxation Workshop - 27-October-1999
• Structuring high risk ventures - 14-November-1997

Click here to expand/collapse more articles by Frank DRENTH.

Anthony Stolarek

Tony engages with Australia's federal and state governments, Treasury and Taxation Office on tax policy and tax administration, through the EY Australia Tax Centre for Excellence. In his EY role and membership of the Institute of Chartered Accountants in Australia tax technical committee, he is heavily involved in submissions to government and the ATO on policy proposals, changes in the tax system and improving its administration and interpretation. Tony is an ICAA representative on the ATO National Tax Liaison Committee and various subcommittees and a member of the Law Council of Australia Business Law tax committee. He is also involved in the EY global Tax Policy Services network which has had significant focus on Base Erosion and Profit shifting in the last year. Tony is a member of the Treasury Special Reference Group relating to its scoping paper dealing with the Risks to Sustainability of the Corporate Tax Base. - Current at 14 August 2013

More by Tony STOLAREK

• Tax consolidation changes past, present and future paper - 15-February-2012
• Earnouts, mergers and acquisitions and tax uncertainty. - 06-April-2010
• Tax consolidation – The finishing touches paper? - 12-March-2009
• Emissions Green Paper lifts haze on tax issues. - 18-July-2008
• Tax issues emitted by the proposed AETS. - 01-July-2008
• The new Federal Government and business taxation paper - 27-May-2008
• Australia's proposed Emissions Trading Scheme - the tax policy dimension. - 18-April-2008
• Consolidated groups and transactions using scrip rollovers. - 13-March-2008
• Leaving a consolidated group — Separation without tears - 01-October-2007
• CGT foreign resident proposed exemption - deemed cost base amendments made. - 13-October-2006
• Re-introduction and rewrite of the share capital tainting rules. - 19-June-2006
• Improving self assessment rules and tax law processes: issues relevant for business - 07-January-2005
• Current Tax Foundations - Moving Targets convention paper - 01-April-2004
• Addressing Losses in the Context of Buying or Selling a Company or Company Group - 27-November-2003
• Allocable Cost Amount - Steps 2, 3 & 4 seminar paper - 29-October-2003
• Mergers And Acquisitions - Some Structuring And Due Diligence Issues - 01-April-2003
• Mergers and acquisitions - due diligence - 03-February-2003
• General value shifting regime - impact for corporate and business groups - 12-September-2002
• Tax reform - status and issues - 03-August-2000
• Book extract: How businesses must deal with business tax reform - 01-August-2000
• Option 2- Extracts From Tax Value Method - 25-May-2000
• Tax Losses & Consolidations Workshop - 27-October-1999
• Taxation of corporate groups and corporate losses: workshop questions and notes - 27-October-1999
• The new era for financing assets - 09-September-1999
• The new era for financing assets - 09-September-1999
• New rules for taxation of dividends - 17-February-1998
• The Tax Office of the '90s. Part 2: the tax practitioner's perspective. Change begets change - 01-January-1993
• Taxation treatment of management/hedging tools - 01-January-1992
• Recent developments in imputation - 01-January-1988
• Derivation of income - basic concepts - 01-January-1982
• Derivation of income - basic concepts - 01-January-1981

Click here to expand/collapse more articles by Tony STOLAREK.