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  • Tax risks you need to disclose

    It is critical for us to have a shared understanding about the types of tax risks you need to disclose under an ACA. We will discuss this with you, and determine materiality thresholds, as part of establishing the ACA.

    Examples of business activities that may raise tax issues or positions that require ACA disclosure could include where:

    • applying the law to a set of circumstances and facts results in an unclear or ambiguous outcome
    • there is a risk that either we, or a court, might take a different view to your application of the law
    • you alter a GST apportionment methodology
    • you enter into a major transaction with significant tax impacts
    • the tax outcomes might be inconsistent with economic substance
    • there are material cross-jurisdictional issues
    • there are complex financial arrangements and business structures
    • the transaction attracts tax benefits not contemplated by the law
    • there are potential inconsistencies in market valuations
    • there are matters that are likely to attract media attention, reputation risk or impact on community confidence.

    Ideally, you should disclose as close as possible to the time you are contemplating the transaction or strategy.

    If you are uncertain about the correct tax position, or if you think the transaction may attract our attention, you should disclose it.

      Last modified: 08 Nov 2018QC 21312