• Service: Tax, International Tax
  • Type: Regulatory update
  • Date: 2/11/2014

Australia - Tax sharing arrangements, anti-avoidance regime 

February 11:  The KPMG member firm in Australia prepared reports on the following developments (read the February 2014 reports by clicking on the hyperlinks provided below):
  • Has your tax sharing agreement had its annual service? The Australian Taxation Office (ATO) reissued Chapter 35 of the “receivables policy” relating to the collection of consolidated group liabilities, including the ATO’s approach to tax sharing agreements and of a clear exit of subsidiaries from consolidated groups. While not substantially different, the release serves as a reminder of the need to regularly “service” and “maintain” tax sharing agreements.

    Read a February 2014 report

  • Beneficial ownership: unexploded grenade in the global tax treaty network? Australia (like a number of other countries) has sought to reform its legislative framework in order to make the service offerings of its local funds management industry more attractive to foreign investors.

    Read a February 2014 report

  • Part IVA: The song remains the same… or does it? Part IVA (i.e., Australia’s general anti-avoidance regime (GAAR)) was amended over a year ago, in response to a series of decisions on commercial arrangements that the Australian Taxation Office perceived as “blatant, artificial and contrived” but that the tax authorities were unable to persuade the courts that the arrangements represented Part IVA-type tax avoidance. The courts have since concluded Part IVA can apply to a wholly commercial scheme.

    Read a February 2014 report

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