Thomson Reuters launches ONESOURCE Mining Tax

Automated reporting solution increases efficiency, control and flexibility amid technical complexity of law

Sydney, April 16, 2012 - Thomson Reuters, the world’s leading provider of intelligent information for businesses and professionals, has launched its ONESOURCE Mining Tax solution following the Senate’s passing of the historic Minerals Resource Rent Tax (MRRT) last month. In response to increased scrutiny, the sophisticated solution will allow companies to comply with new obligations, mitigating the risk of penalties.

The introduction of the MRRT has led to a range of complex reporting requirements including; preparation of disclosures for statutory accounts relating to the tax, payment of regular installments of the tax, and lodgment of an annual mining tax return. The new rules around the tax are technically complex, in particular in relation to areas such as tracking of expenditures, uplift factors and ordering of deductions.

Thomson Reuters automated reporting tool will allow companies to quickly and easily generate disclosures they require to meet their reporting obligations for the new tax. The new solution’s inbuilt logic allows companies to easily navigate through the technical complexity surrounding the law and ensures calculations relating to transfers and offsets are automated to increase efficiency, control and flexibility.

Paul Brindle, managing director of the Tax & Accounting arm of Thomson Reuters, Australia and New Zealand, believes many companies have failed to fully comprehend the long term planning impacts and administrative burden the tax will impose. “Despite the fact the legislation was passed this week, it is debatable how many companies are prepared for the significant reporting obligations that will now be forced upon them,” he said. “Most companies we’ve spoken to have been waiting for the legislation to pass before planning for the complex reporting obligations. Consequently, many mining companies do not feel they have the people, processes or systems in place to comply with the tax. With increased ATO scrutiny, this is extremely concerning for the industry.

“We have been working closely with top-tier and second-tier mining companies as well as Big 4 accounting firms to ensure our solution addresses the complexities imposed by the new legislation. Our solution provides companies with peace of mind when it comes to MRRT reporting. Its sophisticated features include dynamic data transfer, electronic lodgment, a strong audit trail, inbuilt validations, grouping features and more.”

Brindle outlines some of the key challenges for mining companies as:

• The starting base is expected to be one of the most disputable aspects of the MRRT return with the ATO due to the reliability of valuation data and the relative difficulty of the valuation;
• Navigating huge amounts of technical data to ensure the quality and integrity of reporting meets the standards required;
• The mining revenue and starting base will be the most difficult numbers to obtain – this involves establishing a valuation methodology and documentation;
• Modifying internal processes and systems to ensure they’re set up to gather and deliver the appropriate data.

About Thomson Reuters Tax Solutions

Thomson Reuters is the world's leading source of intelligent information for businesses and professionals. We combine industry expertise with innovative technology to deliver critical information to leading decision makers in the financial and risk, legal, tax and accounting, intellectual property and science and media markets, powered by the world's most trusted news organization. With headquarters in New York and major operations in London and Eagan, Minnesota, Thomson Reuters employs approximately 60,000 people and operates in over 100 countries. Thomson Reuters shares are listed on the Toronto and New York Stock Exchanges (symbol: TRI). For more information, go to www.thomsonreuters.com.

CONTACT

Hannah Crafter
ICON International Communications
hcrafter@iconinternational.com.au
+ 61 2 8235 7600 OR +61 430 058 500

Tina Allen
Public Relations Manager, Tax & Accounting EMEA
tina.allen@thomsonreuters.com
+44 (0) 20 7375 6814