Latest developments in tax
Deloitte Australia’s Tax insights apply a wealth of expertise to provide you with comprehensive analysis and implications in respect of the latest tax developments.
Latest Tax insight
On 23 November 2018, the ATO released draft Practical Compliance Guideline (PCG) 2018/D8 on inbound distribution arrangements.
The draft PCG sets out ‘profit markers’ that the ATO will use under its compliance approach to assess the transfer pricing (TP) risk of inbound distribution arrangements.
Recent Tax insights
Changes to the taxation of stapled structures and limitation of concessions for foreign investors - 26 October 2018
A holistic examination of the re-characterisation of trading income derived through the use of stapled structures was announced by the Turnbull Government on 25 March 2017. Various public consultation and debate ensued, culminating in the introduction into Parliament of the Treasury Laws Amendment (Making Sure Foreign Investors Pay Their Fair Share of Tax in Australia and Other Measures) Bill 2018 on 20 September 2018.
The ATO recently released on its website, revised guidance on the operation of the Mutual Agreement Procedure (MAP) article contained in Australia’s double tax agreements.
New legislation directed at black economy behaviour is likely to impact many ordinary business dealings.
The ATO has released updated, finalised guidance in respect of the Diverted profits tax (DPT).
Reportable Tax Positions (RTPs), and the requirement to lodge an RTP schedule, have been in place since 2011. However, the RTP disclosure requirement has been significantly broadened for income years ending on or after 30 June 2018 to include all companies in economic groups with a turnover greater than AUD 250 million (where notified by the Australian Taxation Office (ATO)). It is expected that the RTP regime will cover approximately 1,100 taxpayers.
On 20 September 2018, the Treasury Laws Amendment (Making Sure Multinationals Pay Their Fair Share of Tax in Australia and Other Measures) Bill 2018 was introduced into Parliament, which surprisingly included the measures to enact the proposed changes to the research and development (R&D) tax incentive scheme originally announced in the May budget.
Part 1 - 27 August 2018
On 20 July 2018, the Government released draft legislation and explanatory memorandum, which will extend the definition of a Significant Global Entity (SGE).
Part 2 - 28 August 2018
With more taxpayers potentially within the definition of Significant Global Entity, it is timely to revisit the obligations of a SGE.
On 16 August 2018, the Treasury Laws Amendment (OECD Multilateral Instrument) Bill 2018 (the Bill) completed its passage through Parliament and now awaits Royal Assent.
OECD releases Discussion Draft on the transfer pricing of financial transactions: An Australian perspective - 17 July 2018
On 3 July 2018, the OECD released a Discussion Draft on the transfer pricing aspects of financial transactions.
On Friday 29 June 2018, Exposure Draft (ED) legislation and the associated Explanatory Materials were released for public consultation. These seek to enact the 2018-19 Federal Budget announcements made on 8 May 2018 to narrow the benefits available under the current R&D Tax Incentive program.
On 21 June 2018, the Australian Taxation Office (ATO) released draft Practical Compliance Guideline PCG 2018/D4 (draft PCG) setting out the ATO’s proposed compliance approach with respect to the potential application of Australia’s general anti-avoidance rule (Part IVA) to restructures of hybrid mismatch arrangements.
On 21 June 2018, the Australian Taxation Office (ATO) released Tax Ruling TR 2018/5 (the Ruling), a draft Practical Compliance Guideline PCG 2018/D3 (draft PCG) and a Compendium to TR 2018/5 in relation to the central management and control (CMAC) test of corporate residency.
The Inquiry has provided a platform for significant debate about corporate tax in
On 27 March 2018, the Government released a detailed paper on the changes it will introduce to tighten the rules around stapled structures and limit the concessions currently available to foreign investors for passive income.
Shadow Treasurer Chris Bowen set out Labor’s philosophy on tax reform and Budget repair. As part of the speech, Mr Bowen stated Labor was prepared to lead the policy debate and tackle the big issues, to be “careful but bold”.
On 7 March 2018, the Australian Government released revised Exposure Draft (ED) legislation addressing hybrid mismatch arrangements. Among other additions and changes, the revised draft incorporates the branch mismatch rules and the targeted integrity rule promised in previous Government announcements.
A recent decision of the Administrative Appeals Tribunal (AAT) considered the meaning of sufficient influence, in determining whether a company was an “associate” of another. The AAT held in favour of the taxpayer and concluded that the relevant companies were not sufficiently influenced, and so were not associates. The concept of associate, which is used widely throughout tax legislation, is extremely broad. However, this decision rejects the approach that the ATO had adopted.
On 15 February 2018, the legislation containing the measures to improve the operation of certain entry and exit tax cost setting rules in the tax consolidation regime was finally introduced into Parliament as the Treasury Laws Amendment (Income Tax Consolidation Integrity) Bill 2018 (the Bill).
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20 February 2018 | GST withholding obligation for residential property purchasers
14 February 2018 | Resource Capital Fund decision
13 February 2018 | Foreign residents to be excluded from CGT main residence exemption
30 January 2018 | No turning back
20 December 2017 | ATO issues final compliance approach for
20 December 2017 | Diverted Profits Tax: ATO guidance released
12 December 2017 | The politics of tax 2017
October 2017 | A comparable landscape: ascertaining the policy in Australia’s bank levy
17 October 2017 | ATO estimates large corporate tax gap
October 2017 | Clarity in financial reporting
9 August 2017 | Customs duty compliance: What’s there to worry about?
8 August 2017 | The alternative Government: Labor tax policies
27 July 2017 | Housing integrity measures
16 June 2017 | Multilateral Convention: an Australian perspective
30 May 2017 | The new transfer pricing world: Are you ready?
15 May 2017 | Real estate tax measures
03 April 2017 | Corporate tax rate resolved (for now)
20 February 2017 | Increased penalties for significant global entities
13 February 2017 | Diverted Profits Tax: how does it impact you?
02 February 2017 | The road ahead
21st December 2016 | Tax and Politics 2016
1st December 2016 | Diverted Profits Tax: the future is here
8th December 2016 | BEPS: OECD Multilateral Convention
27th October 2016 | General purpose financial statements: the current state of play
25th October 2016 | Exposure draft to improve the
26th September 2016 | $500,000 lifetime non-concessional contribution cap DUMPED, but…
24th August 2016 | The Government’s tax agenda: gliding or crashing?
10th August 2016 | When is interest paid? The wide view versus the narrow view
22nd July 2016 | Limited Partnership structure defeated in D Marks case
12th July 2016 | Commissioner of Taxation v Ludekens (No. 2)  FCA 775
29th June 2016 | DPT Submission to Treasury
27th May 2016 | Tax consolidation changes bring clarity
16th May 2016 | A fork in the road? Tax and the 2016 federal election
16th May 2016 | Federal Budget 2016-17 Superannuation Changes
13th May 2016 | Federal Budget 2016-17 Diverted Profits Tax
29th April 2016 | ATO targets international profit-shifting arrangements
15th April 2016 | Tax Incentives for
6th April 2016 | New “similar business test” for loss recoupment
24th February 2016 | Taxation, national interest and foreign investment: new Australian guidelines
4th February 2016 | Diving into the year ahead
14th December 2015 | Foreign resident CGT withholding regime
10th December 2015 | New Tax System for Managed Investment Trusts – Bill introduced
1st December 2015 | New Australian tax treaty with Germany
4th November 2015 | Deconstructing the Chevron Transfer Pricing Case
22nd October 2015 | Countering Harmful Tax Practices
21st October 2015 | BEPS: Neutralising Hybrid Mismatch Arrangements
15th October 2015 | The Global Tax Reset
13th October 2015 | Final report on limiting interest deductions and other financial payments
8th October 2015 | Preventing the Artificial Avoidance of PE Status
17th September 2015 | Multinational tax avoidance measures
18th August 2015 | The Senate Inquiry Interim Report
10th August 2015 | Draft legislation on Country-by-Country and transfer pricing documentation
30th July 2015 | Investment Manager Regime (IMR) now in operation
26th June 2015 | Talking tax reform: Property
25th June 2015 | Investment Manager Regime (IMR) law enacted
18th June 2015 |
18th June 2015 | Fly-in-fly-out arrangement held to be otherwise deductible
10th June 2015 | BEPS Action 6: Preventing treaty abuse
10th June 2015 | Permanent Establishments: BEPS Action 7 and Australian measures
10th June 2015 | Talking tax reform
28th May 2015 | Tax Consolidation: Changes raise concerns for affected taxpayers
26th May 2015 | Federal Budget 2015-16: Immigration issues
25th May 2015 | Your tax affairs in the public spotlight: Tax transparency
25th May 2015 | Talking tax reform: Not-for-profit sector
12th May 2015 | Multinational
11th May 2015 | Australian diverted profits and GST measures
20th April 2015 | New Tax System for Managed Investment Trusts - Exposure Draft
1st April 2015 | Re: think: Implications of the Tax Discussion Paper
23th Mar 2015 | BEPS: 2015 and beyond
17th Mar 2015 | BEPS – focus shifts toward implementation