Annual corporate tax transparency report coming soon

The Commissioner of Taxation is required to annually publish certain tax information for all corporate tax entities (companies and other entities taxed in a similar manner to companies) with total income of at least $100 million (as disclosed in its income tax return), except Australian-owned private companies with total income of less than $200 million.

In preparation for its second year of application, the Australian Taxation Office (ATO) plans to shortly send letters to affected entities to verify the tax information that it will extract from 2014-15 Company tax return and amendment requests (if any) processed by the ATO before 1 September 2016 for purposes of publishing the relevant data for all entities by the end of this calendar year.

In relation to income tax matters, the ATO will publish the following information based on the entity's income tax return:

  • Name
  • Australian Business Number
  • Total income for the year
  • Taxable income (if any) for the income year
  • Income tax payable (if any) for the income year.

Entities that are subject to resource rent tax will also have their Minerals Resource Rent Tax or Petroleum Resource Rent Tax liability published as well.

In spite of the above, some entities and organisations have chosen to provide further information and explanation about their tax affairs in their financial or tax reports and/or on their own websites. In this regard, the Board of Taxation has developed a Voluntary Tax Transparency Code as a set of principles and `minimum standards' to guide disclosure of tax information by businesses.