3. Recent developments in large business tax policy
Matthew Brine provided a policy update on a number of key tax priorities and announced but un-enacted measures. The key and current priorities include:
legislation has been introduced to repeal the carbon tax and mining tax
commencement of the National Commission of Audit process
process for progressing the measures announced but not enacted by the previous government and
OECD/G20 work on Base Erosion and Profit Shifting (BEPS).
Matthew informed members that the Government will proceed with 21 of the announced but un-enacted measures, with the bulk of this legislation to be passed by 1 July 2014.
The Government will lead a consultation process involving the Board of Tax on which of the other 64 measures it will proceed. It is expected consultation will be completed by the end of November 2013. Treasury has received a number of submissions supporting some measures to proceed. The Government has committed to introduce protections for taxpayers who have complied with measures.
Matthew also updated members on the OECD work on BEPS. Treasury is establishing a Tax Advisory Group to help it work through some of the key issues under consideration. Matthew noted that this will be a long process and there will be opportunities for the business community to provide their views in the future. A key focus is Action Item 1 which is examining how the digital economy sits in the international tax architecture.