Global

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  • Service: Tax, Global Transfer Pricing Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 8/27/2013

Australia - Liabilities classification for thin capitalisation, transfer pricing positions 

August 27:  With changes to Australia's thin capitalisation rules, multinationals need to determine how their liabilities are classified and how that classification will affect transfer pricing.

Entities must consider whether their liabilities are debt or non-debt.


Just as an entity will alter its thin capitalization position if it recapitalises the business with equity, long-term non-interest bearing debt may achieve a similar outcome.


Read an August 2013 report prepared by the KPMG member firm in Australia: Thin capitalisation – Are your liabilities in or out?



Contact a tax professional with KPMG's Global Transfer Pricing Services.




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