On February 12, 2020, a bill to expand the definition of a significant global entity (SGE) was submitted before the Australian House of Representatives.
The Treasury Laws Amendment (2020 Measures No.1) Bill, 2020 extends the definition of a SGE to include members of large business groups headed by proprietary companies, trusts, partnerships, investment entities, and individuals.
Schedule 1 to the Bill broadens the definition of SGE in the tax law so that it:
The amendments made by Schedule 1, if approved, would apply in relation to income years or periods commencing on or after July 1, 2019.
The move was first announced in the country's 2018-19 Budget to ensure that the multinational tax avoidance rules apply to all relevant entities. SGE is a concept to define a group of entities, interrelated by a control relationship that could enable non-arm’s length dealings and therefore be of special interest to tax authorities.
See Treasury Laws Amendment (2020 Measures No.1) Bill 2020
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