Daniel Hodgson & Matt Masters discuss annual reporting obligations regarding employee share schemes.
Employers will be aware that they have an annual obligation to report Australian taxable events that occur in relation to employee share schemes (ESS) with the first ESS reporting for the Australian tax year ending 30 June 2019 being the ESS Statement due to employees on or before 14 July 2019. The continual changes to the laws relating to ESS over the last decade has increased the compliance burden and the risk of making mistakes. For those employers now turning their attention to this requirement and finding they are grappling with the various tax regimes applying to ESS or getting on top of things we have the answer.
This is an employer reporting obligation so companies should have appropriate systems and procedures in place to meet their ESS-related compliance obligations. Penalties can be imposed on an employer if the submissions are not made on time and any delays or errors in reporting will also have a negative impact on employee engagement, as the information forms a critical part of their tax return obligations.
ESS reporting is a complex, point in time obligation, requiring specialist tax knowledge. Consider the following aspects relating to ESS:
Employers requiring assistance with their 2019 ESS reporting obligations, or who would like further information regarding our software are invited to contact their KPMG representative.
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