Insight

Are you aware of your SGE reporting requirements?

By:
Vince Tropiano,
Jessica Brass
26 Jun 20242 min read
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In 2015, the Australian government introduced the concept of a Significant Global Entity (SGE). An SGE is broadly defined as an entity that is part of a global group with turnover of A$1 billion or more.
Contents

Even if an Australian company has relatively small operations in Australia, it may still be considered an SGE if it part of a group with large turnover. This is particularly the case when the group is owned by a private equity investor or a superannuation fund. Additionally, depending on exchange rates, the A$1 billion threshold is equivalent to approximately €615 million, meaning the threshold in Australia is lower compared to most jurisdictions.  

Importantly, the failure to lodge (FTL) on time penalties for SGEs is 500 times the base penalty. This means that when an “approved form” (such as an Income tax return, Country-by-Country (CbC) reporting statement, Activity Statement etc.) is filed late, the penalties can range from $156,500 (one day late) to $782,500 (more than 112 days late).  

Since 2015, the Australian government has been progressively introducing new tax laws targeted at SGEs, including CbC reporting, preparation and lodgment of General Purposes Financial Statements, and specific integrity measures in the form of the Multinational Anti-Avoidance Law (MAAL) and Diverted Profits Tax (DPT). 

Watch now as Vince Tropiano, Corporate Tax Partner and Jessica Brass, Corporate Tax Senior Manager, discuss the key issues to be aware of in respect to SGEs. 

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Authors
  • Vince Tropiano
    Vince Tropiano Vince has over 30 Years taxation experience, including over 20 years as a Partner. He works closely with multinational organisations, supporting them on all corporate and international tax matters. He has a particular focus on tax governance and tax risk management, supporting organisations with development of their tax governance structure as well as supporting them through any ATO audit and review activity. View Profile
  • Jessica Brass
    Jessica Brass Jess has worked in tax for over 10 years, in both Australia and the UK. Jess has vast experience working with large, multinational groups, helping them navigate complex international tax issues and managing their tax compliance obligations.

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