Item 5 - Significant global entity
The definition of a “significant global entity” (SGE) is to be expanded, commencing on or after 1 July 2018. The Treasury Laws Amendment (Making Sure Multinationals Pay Their Fair Share of Tax in Australia and Other Measures) Bill 2018 was introduced into the House of Representatives on 20 September 2018.
Schedule 7 of the Bill amends the definition of “significant global entity” in ITAA97 so that it applies to groups of entities headed by an entity other than a listed company in the same way as it applies to groups headed by a listed company, and is not affected by the exceptions to requirements applying to consolidated or materiality rules in the applicable accounting rules.
The amendments also modify the rules that identify which entities must undertake country-by-country reporting under the tax law to ensure these rules are aligned with Australia’s international commitments.
An entity is a SGE if it is:
a global parent entity with an annual global income of A$1 billion or more, or
a member of a group of entities consolidated for accounting purposes and one of the other group members is a global parent entity with an annual global income of A$1 billion or more.
Corporate tax entities that are significant global entities (SGE) are required to give the Commissioner a general purpose financial statement (GPFS) if they do not lodge one with the Australian Securities and Investments Commission (ASIC). The financial statement must be for the financial year that most closely corresponds to the income year, and it must be given to the Commissioner by the time the entity is required to lodge its income tax return.
GPFSs cannot be lodged with the income tax return and must be lodged through ATO Online Services.
If you answered Yes at G1, you must complete this item.
Label A - Have you lodged a general purpose financial statement with ASIC in relation to this income year (before the due date for lodgment of the statement with ASIC)?
Answer Yes if you have lodged a GPFS with ASIC before lodging your income tax return.
If Yes, you do not need to answer item 5b.
Answer No if you had not lodged a GPFS with ASIC before lodging your income tax return.
If No, you will need to answer 5b.
Label B - Will you be lodging a general purpose financial statement with ASIC in relation to this income year (before the due date for lodgment of the statement with ASIC)?
Answer Yes if you intend to lodge a GPFS with ASIC on or before the due date for lodgment of your income tax return.
Answer No if you do not intend to lodge a GPFS with ASIC on or before the due date for lodgment of your income tax return. You are required to lodged a GPFS with the ATO on or before the due date for lodgment of your income tax return.
CCH References
22-630-Transfer pricing records, penalties and thresholds
22-640-International cooperation on transfer pricing
30-200-Multinational tax avoidance