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Amendment of Section 83 – Impact Assessment of Proposed Amendments to Employer Reporting

Updated: Nov 24, 2023

The proposed amendments to Section 83 of the Income Tax Act 1967 introduce changes to the reporting obligations of employers.

Here is a breakdown of the amendments and their potential impact on businesses:

Key Amendments:

1)Deletion of Subsection 83(1B): Previous Provision: Required electronic filing for certain entities (companies, limited liability partnerships, trust bodies, or co-operative societies).only Amendment: Subsection 83(1B) is deleted, potentially removing the mandatory electronic filing requirement for the mentioned entities and extending the scope to all the entities now. 2) Modification in Subsection 83(3):

Previous Provision: Included a condition related to an employee's retirement.

Amendment: The proviso under subsection 83(3) is modified, removing the condition related to an employee's retirement.

3) Introduction of Subsection 83(4A):

New Provision: Mandates the electronic filing of returns and notices under subsections 83(1), (2), (3), and (4).

Impact on Businesses:

Retirement Condition Removal:

The removal of the retirement condition in subsection 83(3) may simplify the notification process for employers when an employee ceases employment. Electronic Filing Requirement:

The introduction of subsection 83 (4A), which makes it mandatory for all entities to file returns and notices electronically, has the potential to simplify the filing process.

Adaptation to Electronic Filing: All business entities should ensure compliance with the electronic filing requirements as outlined in the new subsection 83(4A).

Review of Reporting Processes: Employers may need to review and update their reporting processes to align with the changes in filing requirements.

Stay Informed: Regularly monitor official communications and updates from tax authorities to stay informed about any additional changes or clarifications related to these amendments.

Consultation with tax professionals is advised to thoroughly understand the changes and their specific implications for each business.


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