Global

Details

  • Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 3/5/2014

Australia - R&D “at risk” requirement, debt-equity rules  

March 5:  The KPMG member firm in Australia prepared reports on the following developments (read the February and March 2014 reports by clicking on the hyperlinks provided below):
  • Super funds: tax treatment of payments to regulators and administrators - Many of the large superannuation funds that are rated “key taxpayers” or “Q2” under the Australian Taxation Office (ATO) risk differentiation framework have been participating in their 2013 compliance review meetings with the ATO’s Public Groups and International superannuation cell.

    Read a March 2014 report.


  • No risk, no reward – R&D tax offset eligibility - Under the research and development (R&D) tax incentive, a number of integrity rules exist, including that relating to expenditure not at risk. This issue can be easily overlooked by companies seeking to claim an R&D tax offset. If an R&D entity (or its associates) received, or could be reasonably expected to receive, consideration for the expenditure being incurred, regardless of the outcome of the R&D activities, the expenditure relating to those R&D activities is not at risk. Expenditures that are not considered at risk are not eligible under the R&D tax incentive provisions.

    Read a March 2014 report.


  • What is a financing arrangement? - In a recent case, the court considered the application of Australia’s debt-equity rules to a deferred compensation plan, whereby the employee was issued both profit sharing certificates in his employer company and shares in the employer’s holding company. The court held that no financing arrangement existed because this plan did not have the purpose of raising finance—notwithstanding that capital was raised and shares were issued.

    Read a February 2014 report.


  • Infrastructure – can we afford it? - An article discusses the global infrastructure-funding deficit, and highlights the G20 focus on infrastructure and the economic stimulus that the resulting “construction boom” will bring.

    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