Foreword
In our September Kundu the attention is on three topical areas:
1. Applying the equity method
The IASB has proposed amendments to IAS 28 by companies and associates or JVs . We outline the methods available to those in this category.
The IASB has requested comments on the proposed changes by 20 January 2025.
2. Geopolitical Risks
We share an article by our own KPMG Australian Geopolitics Hub covering the risks to PNG and Australian Businesses. I highly recommend this to our readers.
3. IRC Activity
The Income Tax Rewrite that has been in the works has reached version 15. Comments are now being sought by 21 October 2024.
We also comment on IRC default assessments and IRC’s ambition for digital taxation.
Applying the equity method
The IASB proposes amendments to IAS 28 for companies with associates or joint ventures. A company is generally required to account for investments in associates and joint ventures under the equity method (provided exemptions do not apply). To address longstanding application questions on equity accounting under IAS 28 Investments in Associates and Joint Ventures, the International Accounting Standards Board (IASB) is proposing to amend the standard.
IRC activity
We mentioned in our July edition that IRC may move to issue default assessments on taxpayers who were behind in lodging their income tax returns. We have seen a couple of cases in recent weeks whereby IRC asked taxpayers who had not lodged returns for 2021 or prior to provide responses within three weeks or default assessments may be issued.
KPMG reveals top geopolitical risks for PNG and Australian businesses.
by KPMG Australia Geopolitics Hub
Geopolitics is increasingly impacting PNG and Australian businesses. This week our Geopolitics Hub released its Top Risks to Australian Businesses report for 2024-25.
New Income Tax Act re-write
The new Income Tax Act re-write process, which first commenced in early 2020, is still ongoing and has recently resurfaced again. Treasury has released to certain parties the draft version 15 of the new Income Tax Act re-write together with the draft Regulations (third draft). Treasury has sought comments on the drafts by 21 October 2024. We are currently working through the updated papers with a view to submission by the deadline. We understand a one year cooling off period is still expected after the legislation is passed – this should provide sufficient time for taxpayers to digest and plan for the revised legislation prior to it coming into force.
Our social media presence
As usual, you may access our regular multi-disciplined thought leadership pieces, newsletters, and updates on our KPMG PNG LinkedIn page. Also, connect via our webpage www.kpmg.com.pg and Facebook www.facebook.com/pngkpmg/
Enjoy the read this month and reach out with any enquiries at kmcentee@kpmg.com.au if you would like to see KPMG cover specific topics in future editions.