On November 19, 2024, the Australian Taxation Office (ATO) announced an automatic extension for Country by Country Report (CbC) reporting until January 31, 2025.
Extension Details
This extension applies to entities with CbC obligations for the period ending December 31, 2023. It includes filing local files, master files, and CbC reports originally due by December 31, 2024. The ATO emphasizes that this extension is automatic, thus not requiring an additional request.
Requirements for Affected Entities
Entities subject to this obligation must file the relevant reports before January 31, 2025, to avoid possible penalties. Filing must be done through the ATO’s designated channels, such as online services for companies or agents, or through software enabled for Standard Business Reporting (SBR).
Importance of the CbC Report
The CbC report is part of the measures implemented by the OECD in its Base Erosion and Profit Shifting (BEPS) project. These measures increase tax transparency and ensure that multinationals pay taxes in the jurisdictions where they generate value.
Conclusion
The extension granted by the ATO provides companies with additional margin to comply with their Transfer Pricing documentation obligations, including the CbC report. Entities should use this extension to prepare and file their reports accurately and promptly, ensuring compliance with current tax regulations.
Source: Accounting Times
