Consultation to increase review period for certain small and medium entities
Currently the review period is a concessional two-year period for small to medium entities (aggregated turnovers of less than $50 million).
If an entity falls into one of the following categories, the review period will increase to four years for income years commencing from 1 July 2021 once the legislation receives royal assent:
- Enters related party transactions that relate to assets or non-cash benefits with a market value of at least $50,000;
- Receives foreign assessable income of at least $200,000;
- Is entitled to the R&D tax offsets or certain related deductions, recoupments and adjustments;
- Is either a foreign controlled or non-resident entity;
- Has at least 10 other entities that are connected with or affiliated with the entity;
- Engages in schemes captured by either the Diverted Profits Tax (DPT) or Multinational Anti-Avoidance Law (MAAL);
- Claimed one of the following Capital Gains Tax (CGT) concessions:
- Restructure rollover relief;
- Demerger relief;
- Rollovers claimed under Subdivision 126-B relating to CGT asset transfers between two companies or the creation of a CGT asset between companies within the same wholly owned group, where one company is a non-resident; or
- Relief under Division 855 which provides that a foreign resident can disregard a capital gain or loss in certain circumstances.
If you would like to assess the review period for your entities or would like to know more information, contact your usual Mazars advisor or alternatively one of our experts via the form below or on:
Brisbane – Jamie Towers | Melbourne – Evan Beissel | Sydney – Gaibrielle Cleary |
+61 7 3218 3900 | +61 3 9252 0800 | +61 2 9922 1166 |
Author: Chris Chen
Published: 19/09/2022
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