Submitted by
Moderator - Board of Taxation Secretariat
Date
14/03/2016
Issue
The inclusion of deferred tax liabilities in the tax cost setting process adds complexity to the consolidations regime and results in a mismatch of tax and commercial outcomes. Propose deferred tax liabilities be excluded from the entry and exit tax cost setting calculations.
Board response
This idea was submitted to the Board prior to the launch of Sounding Board. The Board understands that the proposal has the potential to significantly reduce compliance burdens for affected taxpayers. The idea has been referred to Treasury for implementation.
05/05/16
This idea was included as part of the Government’s Tax Integrity Package announced in the 2016/17 Budget. Further details available from http://budget.gov.au/2016-17/content/bp2/html/bp2_revenue-10.htm.