New Asia-Pacific taxation taskforce announced

New Asia-Pacific taxation taskforce announced

The ATO has established a new taskforce to share compliance tactics, increase tax transparency and help countries to tackle base erosion and profit shifting in the Asia Pacific.

Last week, ATO Commissioner Chris Jordan hosted the 44th meeting of the Study Group on Asian Tax Administration and Research (SGATAR) in Sydney during which participants agreed to a permanent taskforce to support collaboration on tax issues and help create robust tax systems in each jurisdiction.

Nations involved include China, Japan, Singapore and Korea, as well as a number of developing countries.

Mr Jordan said the taskforce will help the 17 SGATAR countries to work together to address issues including profit shifting by multinationals.

“Globally, there is powerful and unprecedented international collaboration to ensure taxes are paid where profits are earned. This taskforce will give administrations in the Asia-Pacific a platform to play a significant role and contribute to international forums, such as the OECD,” Mr Jordan said.

“It will also enable greater collaboration between SGATAR members. They can use the taskforce to coordinate information sharing, cross-jurisdictional compliance action and get support to implement important initiatives such as automatic exchange of information. Previously, SGATAR members have come together once a year. The taskforce will provide year-round support to members.”

The SGATAR meeting included heads of delegations meetings and bilateral meetings. Technical working groups looked at base erosion and profit shifting, the operation of the multinational entities, and seamless exchange of information and the use of bulk data.

SGATAR members account for 26.5 per cent of the world's GDP, and this is expected to increase to 35 per cent by 2030. Australia, Cambodia, the People’s Republic of China, Hong Kong SAR, Indonesia, Japan, the Republic of Korea, Macao SAR, Malaysia, Mongolia, New Zealand, Papua New Guinea, The Philippines, Singapore, Chinese Taipei, Thailand, Vietnam are all members of SGATAR.

New Asia-Pacific taxation taskforce announced
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