What new tax and accounting issues are raised by the Carbon Pollution Reduction Scheme?
Lots. A new income tax law will need to be written to cover permit deductions. Permits will be tax deductible only when bought, sold or surrendered. Tax deductibility can be banked but not booked in advance. Revenue from permit sales, on the other hand, is taxable income. Free permits and industry assistance given to polluting companies will also be treated as taxable income. GST will apply. How will State/Federal issues be dealt with? COAG will work with State Governments to abandon their local renewable energy targets and schemes in favour of the national scheme. Read the Green Paper and assorted Fact Sheets here.
