Justified trust and its implications for businesses
The ATO’s justified trust approach seeks greater corporate transparency, but it also affects how business has to be done.
In the countdown to the new BEPS regime, businesses need to get systems and processes up and running.
For the ATO, justified trust is a way to gain greater compliance from taxpayers right across the tax and superannuation system. If large corporations are seen to be complying, it argues, other taxpayers will more be more willing to comply themselves.
The approaching BEPS regime is part of the ATO’s justified trust regime.
Thomson Reuters sees justified trust as a sensible element of corporate transparency. But justified trust has significant implications for the way businesses need to structure their finance and tax teams, and their approach to data and technology across these areas. Organisations must ensure their systems and culture can adapt to a tax landscape based on a justified trust approach.
Download this free report from Thomson Reuters for answers on justified trust as you prepare for the BEPS regime.