ATO Issues Release on Extension of SGE Penalties to Subsidiary Entities

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SGE penalties extended to subsidiary entities

On 22 June 2020, the Application of significant global entity (SGE) penalties to subsidiary entities received royal assent. The law extends the increased SGE penalty rates to SGE subsidiary members of tax consolidated or multiple entry consolidated (MEC) groups.

Law changes for SGE subsidiaries

Under the legislation, subsidiary members of SGE consolidated or MEC groups are subject to the same increased penalties as their head company from…