• Voluntary Tax Transparency Code

    The Tax Transparency Code (TTC) is a set of principles and minimum standards to guide medium and large businesses on public disclosure of tax information. The TTC was developed by the Board of Taxation and endorsed by the Government in the federal Budget 2016–17.

    Adoption of the TTC is voluntary and intended to complement Australia’s existing tax transparency measures. The TTC is designed to encourage greater transparency within the corporate sector, particularly by multinationals, and to enhance the community’s understanding of the corporate sector's compliance with Australia’s tax laws.

    Potential users of information disclosed under the TTC may include the general public and interested users in the community such as shareholders, analysts, social justice groups and the media.

    See also:

    Role of the ATO

    As the responsible agency for administering the TTC, we facilitate the centralised hosting of published TTC reports provided to us by businesses that have adopted the TTC. These reports are hosted at data.gov.auExternal Link

    The ATO does not review or provide any assurance on the accuracy of the information contained in these reports.

    For businesses wishing to provide us with their published TTC report, refer to the following instructions on how to notify or contact us.

    Voluntary TTC disclosures by entities do not impact on our legislative duty to produce the annual Report of Entity Tax Information.

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    Who should disclose

    Companies (including entities treated as companies for Australian tax purposes) that are medium or large businesses are encouraged to adopt the TTC. This includes Australian-headquartered businesses and foreign multinationals that have operations in Australia.

    For the purpose of the TTC:

    • ‘Medium businesses’ are businesses with aggregated TTC Australian turnover of at least A$100 million but less than A$500 million.
    • ‘Large businesses’ are businesses with aggregated TTC Australian turnover of A$500 million or more.

    Note: TTC Australian turnover is defined in section 5.1 of the Board of Taxation’s Final Report on a tax transparency code (February 2016).

    Other entities such as superannuation funds, trusts and partnerships may voluntarily adopt the TTC if they wish to do so.

    What should be disclosed

    The minimum standard of information required under the TTC depends on the size of the business. Information disclosed under the TTC is divided between Part A and Part B content. It is recommended that medium businesses adopt Part A of the TTC and large businesses adopt both Part A and Part B of the TTC. A summary of the content of Part A and Part B is set out in the following table.

    TTC content

    TTC disclosure

    Who

    Minimum standard of information

    Part A

    'Large' and 'medium' businesses

    A reconciliation of accounting profit to tax expense and to income tax paid or income tax payable

    Identification of material temporary and non-temporary differences

    Accounting effective company tax rates for Australian and global operations (pursuant to AASB guidance)

    Part B

    'Large' businesses

    Approach to tax strategy and governance

    Tax contribution summary for corporate taxes paid

    Information about international related party dealings

    Source: The Board of Taxation’s Final Report on a tax transparency code (February 2016)

    Businesses may elect to satisfy the minimum standards of the TTC by publishing improved disclosures of tax information in their general purpose financial statements, a Taxes Paid Report or another document. There is no prescribed template or format for TTC content.

    For more detailed guidance on the content of TTC disclosure, businesses should refer to the Board of Taxation’s Final Report on a tax transparency codeExternal Link (PDF 997KB).

    When to disclose

    The Board of Taxation recommended the TTC be adopted for financial years ending after the Government’s announced release of the Board’s final report on 3 May 2016. This means companies with a 30 June year end are encouraged to adopt the TTC for the year ended 30 June 2016. There is no prescribed timing for the release of annual TTC reports.

    How to notify or contact us

    Businesses can notify us once they have made their TTC report publicly available on their website. The notification should include the following information:

    • name of the entity
    • whether it is a large or medium business (refer to the definition above)
    • if the origin of the ultimate parent company is Australia, foreign, Australia & foreign dual listed, or foreign dual listed
    • if the TTC contents satisfy the minimum standard under Part A and/or Part B
    • a current URL link to the published report.

    Please send your notification or any queries to TTC@ato.gov.au

    How to access published TTC reports

    Published TTC reports can be accessed at data.gov.auExternal Link

    The list of TTC reports maintained by the ATO will be updated at regular intervals.

      Last modified: 20 Sep 2016QC 49833