The Turnbull Government is ensuring multinational tax laws apply to all relevant entities, by extending the definition of a Significant Global Entity (SGE). This measure was announced in the 2018-19 Budget.
Many significant measures undertaken by the Turnbull Government to tackle multinational tax avoidance rely on the SGE definition.
For example, a foreign private investment firm which controls several large businesses with consolidated income of $1 billion or more will now be defined as an SGE, and would fall within the scope of the Multinational Anti-Avoidance Law if a group member sought to avoid tax by booking its Australian sales offshore.
Other measures that rely on this definition include the Diverted Profits Tax, and penalties applying to false or misleading statements, late lodgement or tax schemes. SGEs are also required to prepare general purpose financial statements.
This law will further reinforce the Government's commitment to ensuring the integrity of Australia's tax system.
Submissions to the draft legislation close on 17 August 2018. Stakeholders are invited to obtain a copy of the draft legislation or provide their feedback on the Treasury website.