Significant global entities, regardless of the size of the entity in Australia, have an annual obligation unless exempt by the Commissioner to submit:
A master transfer pricing file which provides a high level description of the global operations of the group;
A local file which describes the Australian operations of the group together with relevant intra group agreements.
A CbC report which includes the following information by entity and by jurisdiction:
Revenue (split between related and unrelated parties)
Profit before tax
Income tax paid and accrued
Number of employees
Tangible assets held
Activities undertaken by each constituent entities in the tax jurisdiction
Any further information which may assist with understanding the CbC report submitted.
The proposed law implements Action 13 G20 and Organisation for Economic Co-operation and Development’s (OECD’s) Action Plan on Base Erosion and Profit Shifting.
The above reports if not obtained by the ATO through information exchange, must be lodged in XML format with the ATO.
CTS (CBC) enables the compilation, risk analysis and lodgement of your Master File, Local File and Country by Country report with the ATO.
To learn more about how CTS can benefit your business, simply click here to email our CTS team and a team member will be in touch with you within the next business day.