The Voluntary Tax Transparency Code (the VTTC) is a set of principles and ‘minimum standards’ to guide disclosure of tax information by businesses. The VTTC was developed by the Board of Taxation at the Government’s request:
- To encourage large and medium-sized businesses to publicly disclose their tax affairs to highlight those that are paying their fair share and to encourage all businesses not to engage in aggressive tax avoidance; and
- For large businesses to take the lead, to become more transparent and help educate the public about their compliance with Australia’s tax laws.
Although the VTTC is voluntary, the Government expects all responsible large and medium businesses operating in Australia to adopt it.
The Treasurer released the Board’s report to Government A Tax Transparency Code on 3 May 2016.
Post-implementation review of the VTTC
The Board commenced a post-implementation review of the VTTC in 2018. Following consultation with a wide range of stakeholders, the Board proposed amendments to the VTTC which are outlined in the Consultation Paper released on 26 February 2019. Submissions closed on Tues 26 March 2019. A Report was provided to the former Government in October 2019.
- VTTC Consultation Paper [DOCX 658KB | PDF 534KB]
Maintenance of the VTTC
The Board continues to focus on improving tax transparency as part of its standing business items.
The Board has been following recent developments for Significant Global Entities around public Country-by-Country reporting in Australia and similar global tax transparency initiatives. We are also considering developments in the environmental, social and governance reporting (ESG) landscape and how tax transparency complements ESG reporting.
As part of the Board’s responsibility for the ongoing management of the code, we are keen to understand stakeholder concerns in this area and in particular, how the new measures may interact with the VTTC. The Board looks forward to engaging with stakeholders in the last quarter of 2024 to ensure the VTTC is kept up to date and relevant.
Role of the ATO
The ATO is responsible for the centralised hosting of published reports provided to the ATO by businesses who have adopted the VTTC.
To find out more information about the ATO’s role in administering the VTTC please visit their Voluntary Tax Transparency Code page.
Businesses wishing to advise the ATO of the links to their VTTC reports can do so by emailing ttc@ato.gov.au.
Draft AASB Guidance
The Board of Taxation requested that the AASB develop guidance to assist businesses meet the VTTC recommendations for the suggested tax reconciliation and calculation of an effective tax rate. The AASB has issued draft guidance in the form of a Draft Appendix to the VTTC [ DOCX 140KB | PDF 312KB].
How to access published VTTC reports
You can access the links to the published VTTC reports as notified to the ATO by signatories that have adopted the Code.
Register of Signatories
The signatories to the VTTC can be found in the list of published VTTC reports.
To become a signatory to the VTTC, please email taxboard@taxboard.gov.au.