Australia Paving the Way for the Future? Effective Tax Borne Methodology

From the Australian Taxation Office (ATO) website:

“Pilot to test our Effective Tax Borne methodology

We have developed an Effective Tax Borne (ETB) methodology and have started a pilot with businesses to test and determine its viability.

The methodology provides a standardised approach to identifying an economic group’s worldwide profit from Australian linked business activities, and the Australian and offshore tax paid on that profit.

We are encouraging broader discussion about the need for – and appropriateness of – a standardised approach to calculating ETB which will:

  • allow for ‘like for like’ comparisons of taxpayers’ ETB
  • create a greater level of transparency to build community confidence in the tax system.

Our pilot program involves a ‘test run’ with ten taxpayers. It will facilitate the trialling and testing of several templates, including an ETB workbook and guidance for taxpayers to use when applying the methodology.

We are consulting with the Corporate Tax Association, the Australian Accounting Standards Board and other intermediaries to refine the methodology and related processes.

Further consultation is likely to follow the initial stages of the pilot to capture the findings and determine how ETB fits within ATO and government directions.”

Robert Robillard, Ph.D., CPA, CGA, MBA, M.Sc. Econ.
Senior Partner, DRTP Consulting Inc.
514-742-8086; robertrobillard “at”

DRTP Consulting Inc. solutions go beyond transfer pricing and international tax solutions. The information in this blog post is general information only. Data and information come from sources believed to be reliable but complete accuracy cannot be guaranteed. DRTP Consulting Inc. or the author are not responsible or liable for any error, omission or inaccuracy in such information. The opinions expressed in this blogpost are those of the author. Readers should seek advice and counsel from DRTP Consulting Inc. as required.

Posted by drtp On 10 August 2015