Labor has bungled thin capitalisation tax reform process, business leaders say

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Corporate leaders say Labor’s changes to tax rules covering thin capitalisation are effectively retrospective, ahead of legislation being introduced to parliament as soon as this week.

are effectively retrospective, ahead of new legislation being introduced to parliament as soon as this week.

The lobby group wants holistic and transparent processes for future tax reform plans and said bespoke, confidential and sector-specific discussions by Treasury officials had meant no external party had a full appreciation of all the issues in play in the current round.“The thin cap and subsidiary residency disclosure rules have a July 1, 2023, start date, and both measures still require ATO and Auditing Standards Board guidance.

“The Corporate Tax Association has been part of the extensive consultations on this legislation. It’s time for the Coalition and the Greens to support Australians who pay their fair share of tax by supporting a fairer tax system for multinationals.”

 

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