The Australian Taxation Office (ATO) has published a Local file / Master file detailed design to serve as guidance for taxpayers regarding the practicalities in completing country-by-country (CbC) reporting by significant global entities.
ATO has developed a combined local file / master file XML schema, so the master file must be attached to the combined submission. The local file / master file XML schema comprises:
- statement information for basic information relating to the statement being submitted;
- intermediary information relating to an intermediary lodging;
- entity information about the reporting entity, and (where applicable) the global parent entity (if they are different entities);
- statement lodgment criteria with details on the contents of the lodgment;
- local file including the short form, Part A and Part B of the local file;
- declarations that are standard for the intermediary and the reporting entity.
The design of the local file / master file XML schema allows for separate submissions of the three components of the local file (ie short form, Part A and Part B) and the master file. While the local/master file XML schema contains questions in relation to lodgment of the Country-by-Country (CbC) report, the CbC report itself must be lodged separately in accordance with the OECD XML schema.
The portal is unlikely to be open for Australian Local file submissions until 1 July, with tax return stationary changes likely in June. The ATO is developing instructions for completion of part A that are expected to be released in late May 2017.
