Every significant global entity – or SGE – faces additional reporting requirements, above and beyond what other Australian businesses need to report. The fines for non-compliance are significant, and you need accountants that are experienced in guiding organisations to meet those unique reporting requirements for the safety of your business. The team at Accentor have many years of experience in working with SGEs in Australia, and we can ensure that all your reporting is done on time and within regulation.
What is a SGE? The Australian government defines it across three criteria:
- An entity which is a global parent entity (GPE) with annual global income (AGI) of $1 billion or more.
- An entity which is a member of a group of entities that are consolidated for accounting purposes and one of those entities is a GPE with AGI of $1 billion or more (s 960-555(2)).
- An entity that is:
(a) a member of a notional listed company group (NLCG), where
(b) one of the other members of the NLCG is a GPE with AGI of $1 billion or more.
The services that we offer a significant global entity
The range of services that each significant global entity needs to access from their account is wide and varied, as audits and compliance are complex. At Accentor, the range of services we offer includes, but is by no means limited to:
- Audit assistance
- Audit of financial statements
- Audit relief application
- Country-by-Country (CbC) reporting
- Expatriate senior officer tax
- Group reporting services
- Preparation of General Purpose Financial Statements (GPFS)
- Taxable payments annual reports (TPAR)
This is only a shortlist of the services that we offer. The regulatory environment around SGEs is complex, and companies need a true partner that will take the time to understand their business and challenges. At Accentor, we see ourselves as a true arm to your business, and a source of consultancy and support. Every SGE that works with us can be sure that the most senior on the team will take a personal interest in their business and engage with them deeply – not only around the minimum reporting requirements, but how to be strategic and ensure that their business is in the healthiest position possible.
Why compliance is so important
The environment that governs how each significant global entity can operate is one that is in constant flux. Over the last five years, the Australian Government has been steadily introducing new reporting requirements specifically targeting SGEs – for example, the requirement for Country-by-Country reporting and the requirements around General Purpose Financial Statements have only been introduced over the last half-decade.
Failure to comply with these measures will result in harsh penalties. Failure to lodge on time (FTL) with a taxation document carries a penalty of $Aus111,000 to $Aus555,000.
Get the assistance that you need – foreign controlled small proprietary companies
Above and beyond the reporting requirements of SGEs, it’s also important to note that small proprietary companies that are controlled by foreign companies also have unique reporting requirements separate to that of local organisations – they are required to be audited by a registered company auditor (RCA) every year, and those audited reports need to be submitted to ASIC unless an audit relief is granted beforehand.
The financial regulatory environment that foreign companies operate within inside Australia is challenging, complex, and too important to make mistakes. Contact the team at Accentor today to start discussing how we can help you meet all of your reporting requirements.