- Are you a Significant Global Entity?
Is your company a potential Significant Global Entity (“SGE”), that is, a company who is part of a global consolidated group with revenue of greater than AUD 1 billion?
What should you do?
It is important that you receive the information that you require to make informed decisions.
Given the Australian Government will continue to focus on SGEs, Grant Thornton Australia Limited has employed a centralised approach to our communications with SGEs. However, any questions and inquiries can be directed to your local Grant Thornton relationship partner.
Why is it important?
As an SGE, recently introduced legislation in Australia will have a considerable impact upon your business operations and reporting requirements in Australia. Grant Thornton has had extensive experience advising clients on these developments, including ATO inquiries and advising on the practicalities for meeting these new reporting requirements. The specific measures that the Australian Government have introduced are as follows:
- Country-by-Country Reporting
- General Purpose Financial Statement lodgement requirements
- Multinational Anti-Avoidance Legislation, and
- Diverted Profits Tax
In addition, the ATO has introduced significant changes to the late lodgment penalty regime for SGEs.
Financial reporting requirements
The ATO has recently finalised its guidance on how ‘Significant Global Entities’ will need to prepare and lodge general purpose financial statements under tax legislation. Click here to find our Technical Accounting Alert regarding the financial reporting requirements.
Key findings of this alert:
- General Purpose Financial Statements will now be required (noting RDR will be available to many companies).
- Grant Thornton have preparation expertise and are well placed to assist our clients meeting their new financial reporting requirements.
- There may be circumstances where an option exists to lodge the consolidated financial statements of a foreign parent.