Govt plans to increase tax disclosure for large corporate taxpayers

Federal Government has released a discussion paper setting out proposals for large corporate entities to disclose tax payable.

The discussion paper follows the Government's announcement that tax laws would be amended to improve the transparency of Australia's business tax system.

Efforts to improve transparency was part of a broader effort to maintain the integrity of Australia's tax base and crack down on profit shifting, the paper said.

Assistant Treasurer and Minister for Deregulation, David Bradbury, said increasing the transparency of tax payable would enable the public to better understand the corporate tax system as well as engage in policy debates.

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He said it would also discourage aggressive tax minimisation practices by large corporate entities.

Proposals in the discussion paper centre around the transparency of tax payable by large and multinational businesses earning more than $100 million per year, or those with MRRT or PRRT liabilities.

Entities would be required to publish aggregate collections for each Commonwealth tax, while the information provided to the ATO would be made publicly available by the Commissioner of Taxation.

"The Government is continuing to progress its reforms to our tax laws to prevent profit shifting, close loopholes and protect the integrity of our tax base," said Bradbury.

"If we do not move to close these loopholes, Australian families and small businesses will be forced to shoulder more of the tax burden in the future."

Last month, Government released draft legislation to Pay As You Go (PAYG) instalments for large taxpayers which increased the frequency of PAYG reporting to quarterly.