Expect more detailed questions in tax returns.
The budget speech has stated that tax returns will place a greater focus on indicators of potential base erosion and profit shifting. This most likely means that additional questions will be raised in the annual tax return where the taxpayer engages in cross-border transactions, particularly with related parties. The aim of the questions will undoubtedly be a risk-based approach of identifying taxpayers or transactions for further scrutiny. The importance of answering these questions correctly cannot be emphasised enough, as false statements would impact on the potential prescription (statute of limitations) on matters relating to the issue.