General purpose financial statements: the current state of play – 27 October 2016
In December 2015, changes were made to Australian tax laws that require certain companies, which are not presently lodging general purpose financial Statements (GPFS) with the Australian Securities Investments Commission (ASIC), to lodge GPFS with the Australian Taxation Office (ATO).
The GPFS measure grew out of concerns expressed by the Senate Inquiry into corporate tax avoidance about the level of tax related transparency via the financial reporting process. It applies to income years commencing on or after 1 July 2016, however, there are a number of interpretational issues with this legislation that are yet to be resolved. To this end, the ATO released a discussion paper on the ATO’s proposed arrangements for administering the GPFS measure. Tax Insights discusses the current state of play of this measure.