Non-monetised Administration costs Low High costs Expected benefits of proposed approach, compared to taking no action Regulated parties Compliance costs: Reduction in Medium High compliance costs for firms that utilise safe harbour. Regulators Revenue: Tax collected will Approximately Medium increase. $40m per year Administration Reduction in High costs for ensuring related-party Medium interest rates are appropriate. Wider government Other parties Total Monetised Revenue Approximately Medium Benefit $40m per year Non-monetised Compliance and administration Medium High benefits cost reduction Allowable debt levels While a preferred option is not recommended, the costs and benefits of any option that is selected will be similar Affected parties Comment: nature of cost or Impact Evidence (identify) benefit (eg ongoing, one-off), certainty $m present value, evidence and assumption (eg (High, for monetised compliance rates), risks medium or impacts; high, low) medium or low for non-monetised impacts Additional costs of proposed approach, compared to taking no action Regulated parties Tax payable: It will result in Approximately High additional tax paid. per year (depending on option) Regulators Wider government parties Total Monetised Tax payable Approximately High Cost per year
Non-monetised costs Administration costs Low High Expected benefits of proposed approach, compared to taking no action Regulated parties Compliance costs: Reduction in compliance costs for firms that utilise safe harbour. Medium High Regulators Revenue: Tax collected will increase. Administration Reduction in costs for ensuring related-party interest rates are appropriate. Approximately $40m per year Medium Medium High Wider government Other parties Total Monetised Benefit Revenue Approximately $40m per year Medium Non-monetised benefits Compliance and administration cost reduction Medium High Allowable debt levels While a preferred option is not recommended, the costs and benefits of any option that is selected will be similar Affected parties (identify) Comment: nature of cost or benefit (eg ongoing, one-off), evidence and assumption (eg compliance rates), risks Impact $m present value, for monetised impacts; high, medium or low for non-monetised impacts Evidence certainty (High, medium or low) Additional costs of proposed approach, compared to taking no action Regulated parties Tax payable: It will result in additional tax paid. Approximately per year (depending on option) High Regulators Wider government parties Total Monetised Cost Tax payable Approximately per year High
2017-other-beps-16-ria-interest-july-2017.docx