• Service: Tax, Global Indirect Tax, Global Mobility Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 7/21/2014

Australia - Indirect tax implications of debt transfers, dispute  

July 21: The KPMG member firm in Australia prepared reports on the following developments (read the reports by clicking on the hyperlinks provided below).
  • Australian property market and tax considerations - The Australian property market continues to reflect high levels of activity. Investors who are successful in acquiring property need to consider all tax aspects so to achieve acceptable after-tax returns, given rising asset prices. Foreign investors also may want to consider managed investment trust (MIT) status. The 15% tax rate may affect the ability to formulate a competitive price for buildings and may be further enhanced to the extent the 10% tax rate becomes available for green buildings, when construction has commenced on or after 1 July 2012.

    Read a July 2014 report.

  • Stamp duty implications of debt transfer - Over the last few years, there has been a growing misconception that there is no stamp duty liability on transferring a debt. However, this is only true in some cases—the answer depends on a host of factors including the location of the debt; the nature of the instrument; and the type of transaction. Failure to satisfy the requirements could result in stamp duty liability at a rate of 5.75% of the value of the debt.

    Read a July 2014 report.

  • GST implications of dispute settlement - There may be goods and services tax (GST) implications with respect to settling disputes with customers or suppliers. When GST is payable on a settlement sum and the settlement deed does not contemplate for an additional amount to be paid on account of GST, 1/11th of the settlement sum could be at risk.

    Read a July 2014 report.

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