Australia: ATO administrative approach to public country-by-country reporting exemptions
A practice statement that sets out its administrative approach to the Commissioner's discretion for granting an exemption from public CbC reporting obligations.
The Australian Taxation Office (ATO) released a practice statement, PS LA 2025/2, that sets out its administrative approach to the Commissioner's discretion for granting an exemption from public country-by-country (CbC) reporting obligations.
The practice statement outlines:
- Considerations relevant to exercising the discretion
- The process of seeking an exemption from public CbC reporting obligations
- The information that reporting entities (applicants) need to provide with the exemption application
- Guidance about timeframes and review options
The practice statement is a finalisation of the draft statement released in July, PS LA 2025/D1.
According to the ATO, reporting entities deciding to make an exemption application for public CbC reporting must follow the principles and guidance outlined in the practice statement when exercising the Commissioner's discretion under subsection 3DB(5) or (6) of the Taxation Administration Act 1953.
The ATO adds that the practice statement does not apply to the:
- Exclusion from the public CbC reporting regime for government-related entities
- Authority provided in the law for classes of entities to be exempted by regulation or legislative instrument
Reporting obligations apply to public CbC entities for reporting periods commencing on or after July 1, 2024, unless they have been granted an exemption.