Findings from our 'Effective Taxes Borne' pilot

We successfully completed a pilot trial with participating businesses to test and refine a methodology to determine effective taxes borne (ETB) and its use in analysing the Australian and global tax performance of multinationals.

Our pilot findings show ETB is an effective risk and compliance tool to help us identify an economic group's worldwide profit from Australian-linked business activities, and the Australian and offshore tax paid on that profit.

We will use ETB as part of our compliance activity to assess the tax performance of targeted entities in circumstances including where:

  • you are not transparent in your dealings with us or you have limited prior interaction with us
  • there are indications you have transactions with related entities in low or no tax jurisdictions
  • we have identified key tax risks such as trading, market or procurement hubs, divided supply chain or e-commerce structures
  • we are establishing a new, transparent relationship with you.

Several multinational companies from a mix of industries, markets and tax structures participated in the pilot last year from July to October. In November we consulted with the pilot participants and industry groups to review our findings before we finalised them.

See also:

    Last modified: 09 Feb 2016QC 47945