(May 13, 2015)

Earlier today we already reported on the public consultations that were launched yesterday by the Australian Treasury with respect  to draft legislation that was published regarding 2 Tax Integrity Measures (click here to be forwarded to our article of earlier today). Today Mr. Joe Hockey, the Treasurer of the Commonwealth of Australia, issued a media release announcing an other initiative. Namely: a Voluntary Corporate Disclosure Code.

According to the media release the Australian government will work with businesses to develop a code on greater public disclosure of tax information by large corporates. According to the media release the intention of the voluntary code will be to discourage companies from engaging in aggressive tax avoidance. It will try to achieve this intention by highlighting companies that are paying their ‘fair’ share of tax.

In the media release Mr. Hockey states that he has written to the Board of Taxation asking them to lead the development of this transparency code. He also states that the Board of Taxation will provide a business and broader community perspective to the development of a voluntary corporate disclosure code.

The Australian government would like more companies, particularly large multinationals operating in Australia, to publicly disclose their tax affairs. In developing the code consideration will have to be given to what information is disclosed and how it is disclosed.

As listed entities, Australian and overseas corporates have strong public disclosure obligations. The Australian government wants to encourage greater compliance and support for our taxation system and the government is conscious of maintaining our voluntary, self-assessment taxation system.

The media release closes by stating that the Australian government will monitor progress and evaluate the results of the voluntary code process and that it will consider further changes to the law if required.

For further information click here to be forwarded to the media release as published on the website of Joe Hockey.

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