4. Corporate Tax Erosion project
Mark Konza provided members with an update on the scope and progress of the ATO’s Corporate Tax Erosion work which he is leading. Mark outlined the work underway since July 2013 in the ATO and international developments:
The G20 Finance Ministers have fully endorsed the BEPS 15 point Action Plan which provides for international collaboration to deal with a variety of issues
The ATO and Treasury have provided input into the OECD’s ongoing work on the new global standard for the automatic exchange of information
The Commissioner of Taxation has established a taskforce to focus on the following:
address BEPs with existing domestic and international law
examine the impacts of the digitisation of the economy
support policy analysis and development in working with Treasury, and
support the design of the exchange of information on Common Reporting Standards.
Mark also informed members of the strategic guidance and support being provided to the ATOs International Structuring and Profit Shifting program. This program brings together two Government funded initiatives that are relevant to BEPS:
Strategic compliance initiative renewal work focussing on international and transfer pricing issues, and
‘Offshore Marketing Hubs and Business Restructures’ targeted at restructuring activity that facilitates profit shifting opportunities.
The OECD’s Taskforce on the Digital Economy which is addressing the tax challenges of the digital economy (of which Mark is a member) will publish its draft report in the first half of 2014. The final report will be published in the second half of 2014.