Reporting rules simplified: Dunne

He said the changes reflected concerns expressed by a number of business taxpayers and their representatives.

“The proposed changes will have a beneficial impact on business taxpayers who sell or buy property or services. They will be particularly welcomed by businesses who export and import capital equipment,” he said.

Taxpayers who prepare financial reports using International Financial Reporting Standards will now follow their accounting treatment for taxation purposes for almost all of these arrangements.

The exception will be capital account transactions other than depreciable property. Other taxpayers will use simplified rules that will give similar results.

The amendments will apply from the 2013/14 income year. But the legislation will allow IFRS taxpayers to elect to apply the accounting treatment to new arrangements from the 2011/12 income year.

The changes will also validate the past treatment of arrangements which have effectively used methods allowed under the new rules.