In 2016 the Board commenced a self-initiated project to consider potential areas for greater alignment between tax and accounting treatments, to reduce the compliance and administrative burden on taxpayers that produce financial statements.
This project broadly involved two phases:
- Considering the merits of greater alignment between tax and accounting systems in Australia generally; and
- Identifying specific opportunities for greater alignment between tax and accounting.
The Board’s work under phase two is ongoing, and involves identifying areas of the law where greater alignment could be achieved and assessing these on a case-by-case basis. The Board may also consider the tax implications of new accounting standards as they are developed and implemented.
The Board established a Working Group of Mr Craig Yaxley (Chair) and Mrs Ann-Maree Wolff to conduct the review. The Working Group is being assisted by officials from the Department of the Treasury, the Australian Taxation Office and the Australian Accounting Standards Board. The Board would like to express its appreciation for the assistance provided by these officials.
The Board has completed the following two discrete reports as part of this project, which were published in October 2018:
- Exploring the potential to align accounting and tax systems in Australia
- Tax Treatment of Trading Stock and Accounting Treatment of Inventories.
For further information about the Board’s work on alignment of tax and accounting systems in Australia, please contact the Board of Taxation Secretariat at firstname.lastname@example.org or +61 2 6263 4366.