Global

Details

  • Service: Tax, Mergers & Acquisitions, Global Mobility Services, International Tax
  • Type: Regulatory update
  • Date: 3/26/2014

Australia - M&A in resources sector; changes for foreign multinationals 

March 26:  The KPMG member firm in Australia prepared reports on the following developments (read the March 2014 reports by clicking on the hyperlinks provided below):
  • Tax tips for acquisitions in the resources sector - Concerning mergers and acquisition activity in the resources sector, practical tax tips to consider include: (1) will the acquisition be undertaken as a share or asset acquisition (which could affect the future tax deductibility of exploration and mining rights acquired)? (2) what, for non-resident investors, would be the capital gains tax on the future sale of companies holding Australian mining rights and other property?

    Read a March 2014 report.


  • Closing loopholes or creating trouble for foreign multinationals - Multiple entry consolidated (MEC) groups allow multinationals that have multiple entry points into Australia access to the same tax concessions that are available to Australian consolidated groups. The government announced that it will amend the law, effective 1 July 2014, so that the tax treatment of MEC groups is the same as consolidated groups.

    Read a March 2014 report.


  • Off-market share buybacks - With improved corporate earnings and balance sheet positions, there has been increased media focus on capital management strategies of listed companies, including mounting speculation of possible share buybacks being undertaken in the coming months. Proposed changes would include the denial of “notional losses” by deeming an increased amount of consideration to have been received by the investor for the disposal of shares under a listed company off-market buyback. In some instances, a capital (or revenue) loss that otherwise would have been made for tax purposes would be reduced to nil.

    Read a March 2014 report.


  • Options for amending tax assessment - Section 170 of the Income Tax Assessment Act 1936 stipulates the time limits for amending an assessment. Different time limits apply for different taxes, but in general, the time limit for a company is within four years from the Notice of Assessment. Taxpayers may decide whether to follow the more informal request for an Amended Assessment under Section 170 or follow the more formal objection requirements under Section 175A (generally preferred when the taxpayer seeks to preserve the rights of appeal).

    Read a March 2014 report.



©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

 

Share this

Share this

Subscribe

Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)


Already a Subscriber? Login


Not a member? Subscribe now